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Neiman Marcus files for IPO; looks to expand outlet center format


New York -- Luxury department store operator Neiman Marcus Inc. on Monday disclosed plans for a proposed public offering of up to $100 million.

The retailer’s plan, announced in a regulatory filing, comes some eight years after it was acquired for $5.1 billion by private equity firms TPG Capital and Warburg Pincus. In its filing, Neiman Marcus indicated a desire to expand its outlet center concept, Last Call, which currently operates 35 locations.

"We believe Last Call represents a meaningful growth opportunity relative to the number of the off-price retail locations of other luxury and premium multi-branded U.S. retailers," the company said. "Over the next five years, we believe there is an opportunity to approximately double our Last Call store count. Combined with, we believe there is an opportunity to enhance our existing, nationwide, omni-channel experience for the aspirational, price-sensitive yet fashion-minded customer."

The company’s growth strategy includes building out its multichannel capabilities and improving online sales, especially internationally.

"Our international online business represents a significant opportunity, which we intend to exploit by implementing focused marketing programs to build global brand awareness and by focusing on key geographies with strong affluent customer demographics," the company said.

Neiman Marcus is coming off a strong year. During the 12 month period ended April 27, 2013, the company reported revenues of $4.5 billion, up 6.5% from the year-ago period, and adjusted operating profit of $623 million.

Neiman Marcus won't receive any proceeds from the offering. (All shares in an IPO would be sold by existing shareholders.) In addition to its 35 Last Call stores, the Dallas-based company operates 41 namesake stores, two Bergdorf Goodman locations, and six Cusp stores, which cater to younger customers.

In the SEC filing, Neiman Marcus did not disclose how many shares would be offered, or what the projected price range would be. The company also did not disclose what exchange it expects to list the stock on or what ticker symbol it plans to use.

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