Neiman Marcus Swings into Holiday Quarter Profit as Online Sales Rise

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

Neiman MarcusDallas–Neiman Marcus Group swung to a second quarter profit today, helped by its recent purchase of Munich-based MyTheresa.com, which had sales of $35.8 million.

For the luxury retailer’s holiday quarter, net income rose to $27.8 million compared with a loss of $84 million in the year-ago quarter.

Total net revenue increased 6.3% to $1.52 billion from $1.43 billion a year ago. Comparable store sales were up 5.6%. Sales at neimanmarcus.com increased 15%.

CEO Karen Katz said during a conference call that the retailer’s Texas stores haven’t seen a material change in spending from customers who may be seeing a decline in oil and gas royalty payments.

Although international shoppers don’t represent a large percentage of sales, Neiman Marcus is watching how lower oil prices may affect spending from customers in Russia and South America.  As the U.S. dollar strengthens, the retailer is keeping an eye on its European customers.

In the last six months, the company opened six Last Call stores. Several stores are in stages of being remodeled. Chicago’s Oak Brook and Michigan Avenue stores are complete.

Neiman’s first step into New York City is also underway at the Hudson Yards and is expected to buoy the company’s earnings.

 

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