Neiman Marcus Q2 sales fall 22.8%

US: Neiman Marcus Q2 sales fall 22.8%

By just-style.com | 4 February 2009

Luxury retailer Neiman Marcus has said in a trading update that revenues for the second quarter of fiscal year 2009 decreased 22.8% to US$1.08bn, compared to the same period last year, adding it now expects to post a net loss for the period.

For the second quarter of fiscal year 2009, Specialty Retail Stores same-store revenues decreased 25.0%, representing a decrease of 25.3% at Neiman Marcus Stores and 23.4% at Bergdorf Goodman.

Neiman Marcus Direct second quarter fiscal year 2009 revenues were 12.1% below last year.

For the four-week January period, same-store revenue in the company's Specialty Retail Stores segment, which includes Neiman Marcus Stores and Bergdorf Goodman, decreased 25.8%. Indeed, the company experienced weakness across all geographies and merchandise categories in its Specialty Retail Stores segment.

Comparable revenues at Neiman Marcus Direct in the four-week January period decreased 18.3% compared to January 2007. The top selling merchandise categories in direct marketing segment included women's apparel, the company said.

"As expected, the second quarter was very challenging due to the sharp decline in customer demand in connection with the current economic environment and continued volatility of the financial markets," said Burton M. Tansky, chairman and CEO of Neiman Marcus. "In order to stimulate sales and reduce our inventory levels, we were much more promotional than in prior years. We currently anticipate a significant decrease in our gross margins and a deleveraging of expenses caused by the decline in revenues. As a result, we currently expect to report a net loss for the company for the second quarter."

Sectors: Apparel, Retail

Companies: Neiman Marcus, Burton