Neiman is trying on a hopeful outlook
Neiman Marcus is showing signs of a comeback.
The swanky retail chain said its comparable sales surged 6.7 percent in the most recent quarter — its second consecutive quarter of sales increases — as shoppers snatched up handbags and more full-price fashions.
This is the first time Dallas-based Neiman, which also owns Bergdorf Goodman, has strung together a pair of positive quarters since 2015, said Geoffroy van Raemdonck, a former Ralph Lauren exec who took over as chief executive a month ago, succeeding veteran Karen Katz.
“I’m excited by our momentum,” van Raemdonck said during an earnings call with analysts. “Our business is recovering.”
A weaker dollar helped lure back foreign tourists to Neiman Marcus’ stores in big cit- ies, management said. Wealthy customers in its home state of Texas, largely tied to the oil industry, are also spending again.
Total sales increased 6.2 percent, to $1.48 billion, largely fueled by double-digit growth online. While the number of transactions at its 42 stores stayed relatively flat versus a year earlier, the average ticket increased as customers bought more fashions at full price, interim financial chief Dale Stapleton said.
“We had positive comps across all of our geographies,” Stapleton added.
Neiman’s $4.8 billion of debt remains, however, an albatross around its neck. The first maturities come due in October 2020.
Its massive debt is reportedly one of the major reasons Neiman Marcus was unable to sell itself last year — though there are reports that it may be in talks again with Saks Fifth Avenue’s owner Hudson’s Bay Co.