Neiman Marcus Group Ltd. LLC today reported another round of declining revenues — this time for the third quarter, ended April 29. The luxury goods retailer also confirmed that it has terminated talks regarding a partial or full sale of the company.
The news comes just three months after Neiman Marcus said it was exploring strategic alternatives “which may include the sale of the company or other assets, or other initiatives to optimize” its capital structure.
“We previously announced that the company was exploring potential strategic alternatives,” CEO Karen Katz said on its earnings call today. “However, at this time, any conversations regarding a partial or full sale of the company have terminated.”
She added, “While looking ahead we know challenges remain, but we are encouraged by the strategies we have in place to improve our operational efficiencies and financial performance.
The confirmation comes days after The Wall Street Journal reported that talks of a potential deal between Hudson’s Bay Co. — owner of Saks Fifth Ave, Lord & Taylor and other luxury chains — and Neiman Marcus had stalled.
The struggling retailer — which has cited declining oil prices, slowing tourism and other factors as having negative effects on its revenues during the past year — said its Q3 sales dipped 4.9 percent to $1.11 billion. Q3 comparable revenues also decreased 4.9 percent.
Neiman Marcus also posted a net loss of $24.9 million, compared with net earnings of $3.8 million for the third quarter of fiscal year 2016.
