STRUGGLING NEIMAN MARCUS CONSIDERS SALE AFTER A TOUGH SECOND QUARTER
Dallas-based luxury department store chain Neiman Marcus Group has reported yet another tough quarter, which has the company seeking ways to regain control.
For the second quarter, the company reported total revenues of $1.40 billion, representing a decrease of 6.1 percent compared to total revenues of $1.49 billion for the second quarter of fiscal year 2016. During this same period, comparable revenues decreased 6.8 percent, including non-cash impairment charges of $153.8 million. The company also reported a net loss of $117.1 million compared to net earnings of $7.9 million for the second quarter of fiscal year 2016.
As a result of these lower earnings, the company says that it is “undertaking a process to explore and evaluate potential strategic alternatives, which may include the sale of the company or other assets, or other initiatives to optimize its capital structure, as well as a number of other alternatives.”
An evaluation by the company and financial advisors will yield a specific outcome, and Neiman’s maintains that it cannot be certain if it will take any of the mentioned actions until the evaluation is completed.
A timetable for the completion of the evaluation process has not been set, and the company does not expect to comment further unless a specific transaction is approved by its Board of Directors or the company otherwise decides further disclosure is appropriate.
