Neiman is steaming in wrong direction
Luxury department store chain Neiman Marcus is having a ho-hum holiday.
The Dallas-based company said comparable sales rose just 2.8 percent from a year ago in the quarter ended Oct. 27, compared with 4.2 percent growth in the same period last year. Its net sales dipped 3 percent, to $1.1 billion.
“I’m pleased that our business is stabilizing,” Chief Executive Geoffroy van Raemdonck — who was hired earlier this year to jump-start growth at the struggling retailer — said on an earnings call.
At a time when the wealthiest Americans are opening their wallets wide — and on the heels of rival Saks Fifth Avenue’s strong growth on Wednesday — Neiman Marcus’ weak quarter is surprising.
“If they are ever going to do well, this is the time,” retail consultant Jan Kniffen told The Post. “This market is about as good as it gets for Neiman’s.”
The company’s fortunes have historically fallen and risen in tandem with oil prices. Its largest stores are based in the oil-dependent Lone Star State. Oil prices have dropped in recent months.
While the company has reversed a steep slide this year that consumed top management during the previous two years, it’s still saddled with an unwieldy $4.6 billion of debt that rose in the most recent quarter.
One bright spot is the company’s online business, whose traffic surged 17 percent, the company said.