Neiman Marcus Group’s Online Biz Now Accounts for More Than a Third of Total Revenues

New Neiman Marcus CEO Geoffroy van Raemdonck’s first order of business: accelerating the company’s digital efforts.

The executive, who last month took over for longtime head Karen Katz, said Friday that the retail group’s online business now accounts for more than 34 percent of total revenues.

In the firm’s fiscal second-quarter earnings conference call, he noted that expanded marketing strategies and greater inventory availability have boosted both and Combined, the sites reported a 15 percent increase in revenues for the period.

“As digital continues to gain importance to our customers, we continue to build on our market strength in that area,” van Raemdonck told investors.

Geoffroy van Raemdonck Neiman Marcus
Geoffroy van Raemdonck, the incoming CEO of Neiman Marcus.
CREDIT: Neiman Marcus

One way the retailer is investing digitally is through its iSell platform. “With iSell, associates are able to readily access customer information, reference purchasing history, suggestively sell, share new product information and communicate directly with their clients via their mobile phones,” the CEO said.

He also stressed the need for differentiated experiences and services across both online and in-store.

“Our customer base continues to grow across the millennial, Gen X and boomer segments,” van Raemdonck noted.

For its fiscal second quarter ended Jan. 27, the retail group reversed its year-ago loss. Neiman Marcus reported net earnings of $346.3 million, compared with a net loss of $140.6 million in the previous period. Total revenues rose 6.2 percent to $1.48 billion.

Adjusted earnings before interest, taxes, depreciation and amortization were $277.2 million, compared with $249.7 million for the same period in the prior year. A non-cash income tax benefit of $384.1 million for fiscal 2018 boosted the bottom line. The company also recorded non-cash impairment charges of $153.8 million for fiscal year 2017.

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