Neiman Marcus Income Plummets 54 PercentNeiman Marcus Group Inc. yesterday reported a 54 percent drop in fiscal first-quarter net income, according to reports.
The owner of the Neiman Marcus and Bergdorf Goodman department store chains will intensify its marketing strategies for holiday and other promotions. As a result, president and chief executive Burton Tansky expects the fiscal second quarter, which ends in January, to be more promotional than the year-earlier period, which would hurt the bottom line.
For the current quarter, Neiman Marcus expects to post a mid-single-digit percentage decline in sales at stores open at least a year.
Net income for the fiscal first quarter, which ended Oct. 27, fell to $23 million from $50 million a year earlier.
Sales dropped 10 percent to $681.1 million from $757.2 million while same-store sales fell 10.9 percent.
Revenue for the specialty retail store segment, which includes Neiman Marcus and Bergdorf Goodman stores, fell 11.3 percent to $561 million, including a 16.3 percent same-store sales drop at Bergdorf Goodman and a 10.6 percent decline at Neiman Marcus.
Sales at Neiman Marcus' direct-to-consumer segment, which includes catalog and e-commerce, dropped 6 percent to $97 million from $103 million a year earlier.
Neiman Marcus also reported a 2.1 percent decline in November same-store sales, including an 0.8 percent dip in its retail store segment. Total revenue for November fell to $255 million from $256 million.