Neiman Marcus slashes losses in fourth quarter; announces extensive leadership reshuffle
Dallas, Texas-based luxury retailer Neiman Marcus Group announced its fourth consecutive quarter of positive sales increases on Tuesday, progress which allowed the company to significantly reduce its losses and end the fiscal year on an optimistic note.
Neiman Marcus reported total revenues of $1.13 billion for the three-month period ended July 28, 2018, pushed by an increase in comparable revenues of 2.3% compared to Q4 2017.
In a release, Neiman Marcus Group CEO Geoffroy van Raemdonck further highlighted that e-commerce sales increased 12.5% during the period and now account for 36% of the company’s overall business.
Net loss for the quarter came to $75.3 million, compared to net loss of $366.3 million in the prior-year period.
Full-year revenues totaled $4.90 billion in fiscal 2018, representing a comparable revenues increase of 4.9%, while net earnings came to $251.1 million, compared to the net loss of $531.8 million reported by the company in fiscal 2017.
“As we look to the future, we are making long-term investments in technology, supply chain and new customer centric capabilities that will begin to benefit the business in fiscal 2020 and beyond,” said van Raemdonck. “Our multi-year strategic plan is designed to both protect and advance our existing business, while also positioning Neiman Marcus Group for long-term growth.”
The company also reported a number of changes in its senior executive team, announcing the promotion of chief marketing officer Carrie Tharp to the position of executive VP, chief digital officer, and that of chief financial officer Adam Orvos to the role of VP, chief financial officer and chief operating officer.
In her new position, Tharp will be tasked with overseeing the development of Neiman Marcus’ data and digital analytical tools, as well as customer-facing experience-focused technology, as the company aims to enhance its omni-channel model.
Her team will include Lindy Rawlinson, senior VP for customer experience and e-commerce, and Stefanie Tsen who will join the Neiman Marcus Group from Sephora on October 1, stepping into the position of senior VP for omni-channel customer experiences.
Orvos’ expanded role will entail supervising all of the company’s functions, from IT and cyber security to supply chain and operations. In his team, Tracy Preston, senior VP and general counsel, will also assume further responsibilities as chief compliance officer.
Jim Gold, president and chief merchandising officer, also announced the reorganization of his team, transferring Melissa Lowenkron from Bergdorf Goodman to Neiman Marcus as general merchandise manager, and expanding Lisa Kazor’s responsibilities as general merchandise manager of women’s apparel.
The extensive leadership reshuffle follows the arrival of former Shopbop leader Darcy Penick as CEO of Bergdorf Goodman on September 4, bringing expertise in digital channels to the department store chain.
The changes are integrated in wider reorganization efforts taking place as part of the company’s muliti-year strategic plan as it attempts to face up to its $5 billion of debt.
“These key promotions, new hires, and team refinements ensure that Neiman Marcus Group is in the best position to lead in digital and data excellence, drive growth, and deliver on our goals to continue to elevate the company as one of the world’s most prestigious luxury retailers in the world,” explained van Raemdonck in a separate release.
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