Neiman Marcus profitable in second quarter, revenues up 6.2%
US luxury retailer Neiman Marcus Group announced itself as profitable in the second quarter 2018, with a net profit of $346.3 million compared a $140.6 million in the year-ago period.
For the three months ended January 27, Neiman Marcus recorded adjusted earnings before interest, taxes, depreciation and amortisation of $277.2 million, compared to $249.7 million.
Neiman Marcus cited a provisional non-cash income tax benefit of $384.1 million in the latest quarter due to the impact of the Tax Cuts and Jobs Act from last December, and non-cash impairment charges of $153.8 million in the second quarter of fiscal year 2017 as impacting the bottom line results.
The Dallas, Texas-based company said business is stabilising and it is "positioned for growth" after two straight quarters of year-over-year revenue increases.
For the quarter, revenues hit $1.48 billion, representing an increase of 6.2% compared to total revenues of $1.40 billion for the second quarter last fiscal. During the same period, comparable revenues increased 6.7%. The increases were supported by the Neiman's 'Digital First' strategy and recent investments in new technologies and marketing tools, said the company.
Meanwhile, half-year revenues were $2.60 billion, up 5.2%, while comparable revenues increased 5.6%.
“I am excited about our momentum, which underscores Neiman Marcus Group is truly unique within our industry for our ability to deliver on a personalised luxury shopping experience across channels and brands,” said Geoffroy van Raemdonck, Chief Executive Officer, who was appointed to redirect the brand on February 12.
Van Raemdonck's replacing of Katz in February follows a bleak stint for the high-end retailer, which has struggled with a nearly $5 billion debt load mainly due to its leveraged buyout in 2013, when Ares and Canadian public pension fund CPPIB acquired it from other private equity firms.
Since then, much like other US retail chains, Neiman Marcus has been struggling to reinvent itself as customers increasingly prefer online shopping to brick-and-mortar retail.
“We will continue to innovate and invest in the business to envision new ways to serve the luxury customers of today and tomorrow," said Raemdonck.
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