Neiman Marcus veers into loss in second quarter
Dallas, Texas-based department store operator Neiman Marcus Group reported a net loss of $29.0 million for the second quarter ended January 26, 2019, on Tuesday, as the retailer pushes forward with efforts to turn its business around.
The loss represents a marked decline in comparison to the net earnings of $372.5 million reported by the company in the second quarter of fiscal 2018, when the retailer’s results felt the positive impact of a non-cash income tax benefit of around $387.8 million related to the US Tax Cuts and Jobs Act.
Neiman Marcus’ quarterly revenues totaled $1.39 billion, down from $1.49 billion in the prior-year period. Comparable sales, however, did increase 0.7%.
“Our second quarter results reflect our sixth consecutive quarter of comparable sales increases,” explained Neiman Marcus Group CEO Geoffroy van Raemdonck. “The stabilization of our business continues as we work deliberately to transform Neiman Marcus Group into a luxury customer platform, fueled by technology, innovation, and supported by seasoned and talented executives who are laser-focused on this mission.”
Year to date, the company’s total revenues were $2.50 billion, declining from $2.60 billion in the equivalent period in the previous year, while comparable sales increased 1.6%. The retailer’s net loss for the 26-week period was $57.2 million, compared to net earnings of $346.3 million.
Earlier this month, Neiman Marcus announced that it had negotiated a three-year maturity extension on its credit facilities and unsecured notes. The retailer hopes that this will give it time to execute on its strategic turnaround and become more customer-focused and digitally integrated, initiatives which the company believes will help it to conquer its debt of around $4.6 billion.
On Tuesday the company also gave a first glimpse of its debut Manhattan location, a 188,000-square-foot store in NYC’s Hudson Yards development, slated to open on Friday. Spread over three floors, the store reflects the retailer’s new focus on customer engagement through a range of innovations including digitally enabled fitting rooms and a performance space.
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