Neiman Marcus Group Inc.'s fiscal fourth-quarter loss widened as
the company took hits from a large impairment charge and weakness
in the broader retail environment.
In July, the Dallas retailer, known for its opulent holiday
catalogs and designer apparel, said it would try to boost sales
with promotions until a new strategy to sell less-expensive goods
kicks in. Before, Neiman had scrambled to cut inventories and
shrink its work force.
For the quarter ended Aug. 1, privately held Neiman posted a
loss of $168.5 million, compared with a $35.6 million loss a year
earlier.
The latest results included $143.1 million in impairment
charges, while the prior-year results had $31.3 million in
impairment charges, including a write-down connected to its Horchow
trade name.
Revenue fell 26% to $768.1 million, while same-store sales fell
23%.
Gross margin fell to 24.1% from 30.5%.
Revenue in the specialty retail segment fell 27%, while the
smaller direct-marketing segment, which includes both the online
and print catalog businesses, declined 18%. The specialty retail
segment swung to an operating loss while direct-marketing earnings
decreased 34%.
Last month, rival Saks Inc. (SKS) reported a 16% drop in
same-store sales for its quarter ended Aug. 1, while margins fell
on continued markdowns.
- By Joan E. Solsman and Kathy Shwiff, Dow Jones Newswires;
212-416-2357; joan.solsman@dowjones.com