Dallas—Though its sales were up 6%, Neiman Marcus Group Ltd. today reported a swing into a third quarter loss mostly due to expenses relating to inventory-related accounting and transaction costs.
For the quarter ended May 3, the parent to Neiman Marcus and Bergdorf Goodman posted a net loss of 2.67 million compared with a profit of $70.77 million in the year-ago quarter.
Investing in New Stores
Excluding purchase-accounting impacts and acquisition related costs to its purchase last fall by investor group Ares Management LLC and Canada Pension Plan Investment Board, adjusted earnings would have been $45.1 million.
Neiman Marcus also incurred $4.5 million in costs associated with its cyberattack and a $1.5 million loss in equity in regards to the company’s April exit of Chinese website Glamour Sales Holdings.
Net sales rose increased to $1.16 billion from $1.10 billion a year ago. Comparable store sales were up 5.9%. Stores posted a 4.2% increase in sales while online sales increased 11.7% to $271 million.
Moving forward, Neiman is looking for opportunities to reallocate space and renovate some of its current stores.
“We’re fortunate that our new owners (Ares Management LLC and Canada Pension Plan Investment Board) are focused on investing into our new stores with an eye on long-term growth,” CEO Karen Katz said during a conference call with analysts. She added that the company will allocate greater capital to highly productive stores in gateway cities.