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Neiman Marcus has successful fiscal 2022

Neiman Marcus
Neiman Marcus Fort Worth store.

Neiman Marcus Group is seeing results from its “Revolutionizing Luxury Experiences” strategy.

The integrated luxury retailer (and parent of brands including Neiman Marcus and Bergdorf Goodman), is announcing several fiscal year 2022 business highlights for the full year that ended July 31, 2022. The company delivered over $5 billion in gross merchandise value ("GMV") and year-over-year gross margin expansion supported by 80% full-price selling. This led to 11% EBITDA margin for fiscal year 2022.

Neiman Marcus also revealed some metrics about its customer performance:

  • Top 2% of customers drive approximately 40% of total sales.
  • 80% of top customers have at least $1 million of net worth.
  • Top customer average spend is over $25,000 annually, buying with Neiman Marcus 25 or more times a year.
  • Neiman Marcus reported 90% top customer retention during fiscal year 2022.
  • Multichannel customers on average spent five-times more than those who shopped only one channel.
  • Seventy percent of U.S. high-net-worth individuals live within 30 miles of a Neiman Marcus Group store. Nearly 70% of Neiman Marcus Group stores reached their highest revenue in over a decade, while digital properties grew total visits to 300 million in fiscal year 2022.

Additionally, Neiman Marcus says it is drawing new, loyal customers who tend to be younger, spanning from Gen X to Gen Z, that entered the luxury market during the pandemic.

Tech updates
The company completed its acquisition of Stylyze at the beginning of the fiscal year. Stylyze is a machine learning platform that offers product attribution data and curated content to support relevant shopping experiences across the customer journey.

In addition, store associates utilized the retailer’s proprietary remote selling tool, Connect, to send on average 1.5 million texts and personalized emails to customers per month.

In April, the company entered a partnership with Farfetch which included a commercial agreement that will see Farfetch re-platform the Bergdorf Goodman website and mobile application. As a result, Bergdorf Goodman intends to gain enhanced capabilities to introduce its digital customer experience and curated offering to customers globally, integrating seamlessly with its New York City flagship.

[Read more: Farfetch takes stake in Neiman Marcus Group to fuel online growth]

Other fiscal year 2022 highlights include:

“We are very pleased with the strong performance delivered in fiscal 2022, which validates our ambitious strategy and our team's impressive execution," said Geoffroy van Raemdonck, CEO of Neiman Marcus. "Our fiscal year concluded at the end of July, throughout which our teams worked diligently to achieve over 30% comparable sales versus the previous year and $495 million in Adjusted EBITDA.

"Our top customers are highly loyal and drove 40% of total sales in FY22," continued van Raemdonck. "Our brand partners come to us to reach our affluent customers through a premier integrated luxury retail experience. We believe our business model positions us well as we navigate the uncertain macroeconomic environment ahead."

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