Neiman Marcus ends the year on an upbeat note
Neiman Marcus Group narrowed its loss in the fourth quarter and posted its fourth consecutive quarter of sales gains amid the resurgence of the luxury market
The upscale retailer reported a net loss of $75.3 million for the quarter ended July 28, compared to a net loss of $366.3 million in the year-ago period which included non-cash impairment charges of $357.0 million.
Sales increased 2.3% to $1.13 billion. Same-store sales rose 2.3%. Digital revenue was up 12.5%, representing 36% of total sales.
Adjusted EBITDA was $56.1 million compared to $48.2 million in the prior year.
For the full year, the company reported total revenues of $4.90 billion, representing an increase in comparable revenues of 4.9%. The company reported net earnings of $251.1 million in fiscal year 2018 compared to a net loss of $531.8 million in the prior year.
“The fourth quarter was in-line with our expectations and marked our fourth consecutive quarter of positive sales increases,” said Geoffroy van Raemdonck, CEO, Neiman Marcus Group. “We also delivered healthy gross margin performance through lower markdowns and strong inventory management.”
Looking to the future, Neiman Marcus making long-term investments in technology, supply chain and new customer centric capabilities that will begin to benefit the business in fiscal 2020 and beyond, added van Raemdonck.
“Our multi-year strategic plan is designed to both protect and advance our existing business, while also positioning Neiman Marcus Group for long-term growth,” he said.
Neiman Marcus is entering into a critical period. The company has a $5 billion debt load, with a $2.8 billion loan coming due in October 2020.
The upscale retailer reported a net loss of $75.3 million for the quarter ended July 28, compared to a net loss of $366.3 million in the year-ago period which included non-cash impairment charges of $357.0 million.
Sales increased 2.3% to $1.13 billion. Same-store sales rose 2.3%. Digital revenue was up 12.5%, representing 36% of total sales.
Adjusted EBITDA was $56.1 million compared to $48.2 million in the prior year.
For the full year, the company reported total revenues of $4.90 billion, representing an increase in comparable revenues of 4.9%. The company reported net earnings of $251.1 million in fiscal year 2018 compared to a net loss of $531.8 million in the prior year.
“The fourth quarter was in-line with our expectations and marked our fourth consecutive quarter of positive sales increases,” said Geoffroy van Raemdonck, CEO, Neiman Marcus Group. “We also delivered healthy gross margin performance through lower markdowns and strong inventory management.”
Looking to the future, Neiman Marcus making long-term investments in technology, supply chain and new customer centric capabilities that will begin to benefit the business in fiscal 2020 and beyond, added van Raemdonck.
“Our multi-year strategic plan is designed to both protect and advance our existing business, while also positioning Neiman Marcus Group for long-term growth,” he said.
Neiman Marcus is entering into a critical period. The company has a $5 billion debt load, with a $2.8 billion loan coming due in October 2020.