Debt costs offset soaring sales at Neiman Marcus
Despite seeing a double-digit hike in fourth quarter revenues as luxury spending rebounds, retailer Neiman Marcus Inc has nearly doubled its losses on costs incurred for refinancing some of its debt.
The retailer, which operates both its namesake and Bergdorf Goodman stores, saw its quarterly loss widen to $61.4 million in the three months to July 30, compared with a loss of $32.8 million in the same period last year. Excluding a $42.7 million after-tax loss on debt extinguishment, its adjusted net loss was $18.7 million, the company said.
Total revenues, meanwhile, jumped 11.3% to $919.7 million, up from $826.3 million in the prior year, and comparable revenues rose 11%.
For fiscal year net income was $31.6 million, against a loss of loss of $1.8 million the year before. Excluding the debt extinguishment costs, adjusted net income for fiscal year 2011 was $74.3m. Annual revenues rose 8.4% to $4 billion from $3.69 billion a year ago. Comparable revenues increased 8.1%.
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