Neiman Marcus hit by department store slump

The strong dollar’s influence on tourism and store traffic led the Neiman Marcus Group to report a decline in same-store sales for the first time in six years.



For the first quarter ended Oct. 31, the retailer reported total revenue of $1.16 billion, a decrease of 1.8% compared to total revenue of $1.19 billion for the first quarter of fiscal 2015. Same-store sales decreased 5.6% and the company reported a net loss of $10.5 million compared to net earnings of $0.2 million for the first quarter of fiscal year 2015. Adjusted EBITDA was $164.3 million compared to adjusted EBITDA of $194.3 million for the first quarter of fiscal year 2015.



“We, like many other retailers, are experiencing several headwinds, causing disruption in the market” said CEO Karen Katz said in a post-earnings conference call. “We remain dedicated to serving our affluent customers and delivering an extraordinary and memorable shopping experience all while continuing to focus on our financial performance.”



Katz said the strong dollar reduced international tourist traffic at the retailer's stores in South Florida, New York City, Las Vegas and other key markets.



Many department stores struggled in the fall quarter, and those struggles are expected to last into the holiday season as customers spend on electronics instead of apparel.



In August, the Neiman Marcus Group filed with the Securities and Exchange Commission to issue shares in an IPO. Citing market conditions, it abruptly delayed the plans in October, and now hopes to complete the stock offering in 2016.



The company's website suffered an outage on the crucial Black Friday recently, leaving some shoppers empty-handed.



The Neiman Marcus Group operates 42 stores under the Neiman Marcus and Bergorf Goodman banners.