Neiman Marcus Group has hailed its new digital strategy as the upscale department store retailer moved to a profit in its second-quarter and reported its second consecutive quarter of revenue growth.
For the period ended 27 January, net earnings totalled US$372.5m, compared to a net loss of $117.1m in the prior year. The firm included a provisional non-cash income tax benefit of about US$384.1m in the figure and noted non-cash impairment charges of $153.8m in the second quarter of fiscal year 2017. Adjusted EBITDA for the period, meanwhile, was $154.8m compared to $126.8m last year.
The Dallas-based business booked total revenues of US$1.48bn, representing an increase of 6.2% compared to total revenues of $1.39bn for the second quarter of fiscal year 2017. During this same period, comparable revenues increased 6.7%.
In a statement, Neiman Marcus said its second-quarter results reflect indications that the company’s base business is stabilising and is positioned for growth. It credited the group’s ‘Digital First’ strategy and recent investments in new technologies and marketing tools for the revenue increases seen in the period.
The firm first unveiled plans to roll out a new digital strategy in October of last year, aimed at “furthering its leadership position in the luxury retail space”.
CEO Geoffroy van Raemdonck added: “I am excited about our momentum, which underscores Neiman Marcus Group is truly unique within our industry for our ability to deliver on a personalised luxury shopping experience across channels and brands.
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“We will continue to innovate and invest in the business to envision new ways to serve the luxury customers of today and tomorrow.”