Neiman Marcus Posts Q3 Profit Pickup

by MR Magazine Staff

NEW YORK – Neiman Marcus Thursday reported double-digit increases in its third quarter and year-to-date profits, combined with mid-single digit increases in same-store sales.

The Dallas-based luxury retailer, acquired and taken private by TPG Capital and Warburg Pincus in October 2005, noted that net income for the 13 weeks ended April 28 rose 46.9% to $59.5 million from $40.5 million in the prior-year quarter. Excluding discontinued operations, such as the stakes it sold in Kate Spade and Gurwitch Products, net income was up 48.7% to $60.9 million from $41 million. Operating earnings climbed 19.9% to $180.6 million.

Revenues advanced 8.2% to $1.07 billion from $992.3 million in the year-ago period and rose 6.1% on a same-store basis. Stores revenues were up 8.1% to $908 million while direct marketing receipts grew slightly faster, rising 8.7% to $165.4 million.

In the 39-week year-to-date period, net income was up 29.6% to $127.8 million from $98.6 million, and moved ahead 52.7%, to $150.6 million, with the exclusion of losses from discontinued operations.

Revenues jumped 8.8%, to $3.41 billion from $3.13 billion, and comparable-store revenues were up 6.6%.

The nine-month figures combine figures from the post-acquisition company, Neiman Marcus Inc., with those of the predecessor firm, Neiman Marcus Group, and don’t conform to generally accepted accounting principles.

The company operates 38 Neiman Marcus stores, two Bergdorf Goodman units and 19 clearance centers, occupying about 6 million square feet of space overall.