While luxury goods retailer Neiman Marcus Group Ltd. LLC experienced across-the-board declines in its second quarter, the results were slightly better than anticipated.
For Q2, ended Jan. 30, 2016, the company reported total revenues of $1.49 billion, a decrease of 2.3 percent compared to revenues of $1.52 billion for the same period last year. Comparable sales also decreased 2.4 percent while earnings slid 72 percent, to $7.9 million, from $27.8 million in the comparable quarter.
After a lackluster holiday season and several macroeconomic challenges — record low oil prices, FX pressures and softer consumer spending — investors had been especially cautious about the retailer heading into Tuesday’s Q2 report. Add to that the fact that the company, which also owns Bergdorf Goodman department stores and e-tailer mytheresa.com, had produced disappointing results in the previous quarter. In Q1, Neiman Marcus reported total revenue of $1.16 billion, representing a decrease of 1.8 percent while comparable sales slid 5.6 percent. The company had also posted a net loss of $10.5 million in that same quarter.
“Our financial performance in Q2 was better than that delivered in Q1 [but] that should not imply that the quarter and the holiday selling season were not without their share of challenges for us across all brands and all regions,” said Karen Katz, Neiman Marcus’s CEO, president and director, during the firm’s conference call. “Our business continues to feel the effects of a skittish stock market and strong dollar, resulting in fewer international tourists in key store markets. The price of oil fluctuated throughout the quarter, and oil prices remained at their lowest levels in over a decade. While this is good for the consumer at large, we have many customers with investments in the oil and gas business.”
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Katz said the company would continue to invest in its technology and e-commerce initiatives as it seeks to shoulder challenges.
“To close, while business remains challenging, our team remains focused on delivering our customers a seamless, consistent and memorable shopping experience whether in one of our stores or on any one of our websites through digital innovation, outstanding service and superlative merchandise offering,” Katz said.