Neiman Marcus Group Inc shares tumbled 24 per cent in Tuesday trading after the luxury goods retailer posted better-than-expected first-quarter earnings, but forecast flat earnings for the second quarter.

Neiman shares were down $8-9/16 at $27-3/4 in New York Stock Exchange trading at midday.

The sell-off was "significantly overdone," according to Ladenburg, Thalmann retail analyst Eric Beder. "People are very skittish about the whole retail industry. Every miss is being punished."

The Chestnut Hill, Mass-based company, whose stores include high-end retailers Neiman Marcus and Bergdorf Goodman, said its November sales are running below last year's levels.

Neiman Marcus said same-store sales, or sales at stores open at least one year, are expected to rise in the low single-digits for the second quarter. Earnings for the second-quarter are seen flat against what the company said was a "strong" year-ago quarter in which it earned 84 cents per share.

Analysts polled by First Call forecast second-quarter earnings of 97 cents per share.

"Since Election Day business has remained well below our expectations, particularly at Neiman Marcus Stores," Neiman Marcus' co-chief executive Robert Smith said in a statement.

"We look for our customers to resume more normal spending patterns during the second quarter. At this point, we are cautiously optimistic about the upcoming holiday season."

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