Expenses Put Neiman Marcus into Q4 Loss, Sales Rise

In Reports, What's New, Industry News by Accessories Staff

Neiman MarcusDallas—Neiman Marcus Group reported today that it swung into a fourth quarter loss despite an increase in sales due to expenses related to a recent cyberattack.

Neiman lost $42.06 million on $1.11 billion in revenue compared to a profit of $2.88 million on $1.12 billion in the same quarter the previous year. The company lost $55.3 million on its credit card program and also spent $190.1 million on other expenses that included transaction expenses and costs related to the criminal cyberattack that affected customers.

Net revenue was $4.84 billion, up from $4.65 billion during the same period in 2013, when it reported earnings of $163.7 million. Comparable store sales were up 5.5%

Expansion

Earlier this week, Neiman announced that it is acquiring Munich-based mytheresa.com as well as its flagship store in Munich.

“With the acquisition of mytheresa.com, we take yet another important and strategically significant towards our goal to be the leading global luxury ecommerce player with three of the most prestigious brands,” CEO Karen Katz said during the earnings call, adding that the retailer will attract a younger, more international customer.

The company also is rolling out new delivery options and technology for its associates. It also added a ship-to-store option in January, a buy-online-pick-up in store option in April and is testing same-day delivery in three markets. The new service will have an additional fee, Katz said.

Moreover, Neiman will be giving out the new iPhone 6 to its sales associates. Neiman Marcus has more than 7,000 iPhones and iPads that are available for associate use to connect to customers.

The company is in the middle of making major renovations and store builds, too. Over the next five years, there’s a three-phase modernization scheduled for Bergdorf Goodman, the opening of its first Manhattan store at Hudson Yards, and a store planned for Roosevelt Field Mall in Long Island in 2016. Neiman is working on renovations of stores in Chicago and Los Angeles, too.

As for Last Call Studio, a new one will open this November in Brooklyn and four Last Call Studio stores slated to open, following two stores this quarter. Katz said the company plans to do an analysis of the urban and suburban Last Call stores to determine its future growth.

 

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