World Footwear

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Neiman Marcus with significant loss

Jun 12, 2019 United States
Neiman Marcus with significant loss
The Texas-headquartered department store group reported falling third quarter revenue. Net loss reached 31.2 million US dollars, a worse result than the 19.9 million US dollars net loss from the previous year

Third Quarter Review

For the quarter ended on the 27th of April 2019, the company reported total revenue of 1.1 billion US dollars, representing a decrease in comparable sales of 1.5% from similar quarter a year ago. During the quarter, the company reported a net loss of 31.2 million US dollars compared to a net loss of 19.9 million US dollars for the third quarter of fiscal year 2018.

Adjusted EBITDA for the third quarter was 126.5 million US dollars compared to Adjusted EBITDA of 143.8 million US dollars for the third quarter a year ago. Excluding MyTheresa, US Adjusted EBITDA for the third quarter was 126.5 million US dollars compared to Adjusted EBITDA of 143.1 million US dollars a year ago. For the 39 weeks ended on the 27th of April 2019, the company reported total revenue of 3.6 billion US dollars, representing an increase in comparable sales of 0.7%.

With this set of results, Neiman Marcus joins a growing list of department stores, such as Nordstrom, Kohl’s and JCPenney, registering performances well below expectations, as they struggle with several challenges, such as a decrease in store traffic, merchandising misses and unseasonable weather.

Despite that, CEO Geoffroy van Raemdonck underlined the company’s recent efforts, which include taking a minority stake in online resell retailer Fashionphile, specialized in pre-owned designer handbags and accessories: “We continue to drive innovation and are making long-term investments in technology and customer centric capabilities that will both enrich the shopping experience and position the company for long-term growth”, commented van Raemdonck.


Full Year Update

The company reported a net loss of 88.4 million US dollars for the 39 weeks ended on the 27th of April 2019 compared with net earnings of 326.4 million US dollars in the prior year. The prior year included a provisional non-cash income tax benefit of approximately 386.2 million US dollars. Adjusted EBITDA for the 39 weeks period was 396.1 million US dollars compared to 421.0 million US dollars for the same period in the prior year. Excluding MyTheresa, US Adjusted EBITDA was 397.0 million US dollars, which compares to 410.5 million US dollars for the same period in the prior year.

Photo Credits: Fortune.com

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