Neiman Marcus reports profit loss
For its fiscal third quarter ended May 3, 2014 Neiman Marcus reported a net loss of $2.7 million compared with a profit of $70.8 million a year ago.
Earnings before interest and other expenses declined 24 percent to $149.1 million versus $196 million last year. Operating earnings also fell as the company’s costs of goods increased significantly.
Neiman Marcus paid its lenders $82.2 million in interest during the quarter, up from $32.3 million in the same period last year. At the end of the quarter, Neiman Marcus’ debt stood at $4.59 billion versus $2.68 billion a year ago.
Total sales increased to $1.16 billion from $1.10 billion a year ago. Stores posted a 4.2 percent increase in sales. Online sales increased 11.7 percent to $271 million.
Moving forward, Neiman is looking for opportunities to reallocate space and renovate some of its current stores. “We’re fortunate that our new owners (Ares Management LLC and Canada Pension Plan Investment Board) are focused on investing into our new stores with an eye on long-term growth,” CEO Karen Katz said.