Dec 14, 2016
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Neiman Marcus reports comparable revenue decrease, bigger net loss in Q1

Dec 14, 2016

Neiman Marcus on Tuesday released its first quarter financial results ended on October 29, 2016. The company reported a 7.4% decrease in total revenues to $1.08 billion from $1.16 billion, and an 8.0% decrease in comparable revenues.

Neiman Marcus

Net loss was $23.5 million compared to $10.5 million in the prior year first quarter and adjusted EBITDA was $122.9 million versus $164.3 million in the previous year.
In addition, SG&A expenses were $276.6 million compared to $285.3 million, and operating earnings were $25.3 million versus $54.8 million. Income from the credit card program remains in the negative in the quarter at $13.7 million.

Neiman Marcus CEO Karen Katz claims that a lack of customer loyalty is the reason for the falling sales. She said in a conference call, “Our core customer is visiting us a little less frequently and customers in general are a little less loyal to any one retailer. They continue to shop for the best deal and the lowest price.”
The retailer in November partnered with fashion rental service Rent the Runway to open a shop-in-shop at the Neiman Marcus Union Square location in San Francisco. Katz told the Washington Post that the retailer aims to better understand the millennial customer through the partnership.
Neiman Marcus closed its 2016 fiscal year with a net loss of $407.25 million.

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