NEIMAN MARCUS REPORTS HAS TOUGH FOURTH QUARTER

Dallas-based luxury retailer Neiman Marcus Group LTD has reported less-than-desirable financial results for the fourth quarter and fiscal year ended July 30, 2016.  The company has continued to struggle in the competitive luxury retail market for some time.

For the fourth quarter of fiscal year 2016, the company reported total revenues of $1.13 billion, representing a decrease of 3.3 percent compared to total revenues of $1.17 billion for the fourth quarter of fiscal year 2015. During the quarter, comparable revenues decreased 4.1 percent. Including non-cash impairment charges of $466.2 million based primarily on the write-down of the fair value of goodwill and the net carrying value of trade names. Moreover, it reported a net loss of $407.3 million compared to a net loss of $32.9 million for the fourth quarter of fiscal year 2015. Adjusted EBITDA was $64.5 million compared to $107.9 million in the prior year.

For fiscal year 2016, the company reported total revenues of $4.95 billion, representing a decrease of 2.9 percent compared to total revenues of $5.10 billion in the prior year. During this same period, comparable revenues decreased 4.1 percent, and the company reported a net loss of $406.1 million in fiscal year 2016 compared to net earnings of $14.9 million in the prior year. Fiscal year 2016 Adjusted EBITDA was $584.9 million compared to $710.6 million in the prior year.

In addition to its namesake store, the company also owns Bergdorf Goodman, Last Call, Horchow, Theresa and mytheresa. It plans to open its first New York City store at Hudson Yards in 2018.