For the fourth quarter in a row, Neiman Marcus Group posted rising sales, capping off its fiscal year on a high note.
The Dallas-based retailer, which also owns Bergdorf Goodman and luxury e-commerce site MyTheresa, said on Tuesday that it had narrowed its losses to $75.3 million for its fiscal fourth quarter, ended July 28, down from $366.3 million the year prior. Total revenues rose 2.3 percent year over year to $1.13 billion.
Online sales were again a strong point in the earnings report, rising 12.5 percent. They now make up 36 percent of the group’s overall business, up from 35 percent last quarter.
CEO Geoffroy van Raemdonck, who succeeded longtime CEO Karen Katz in February, said that the results were in line with expectations.
“As we look to the future, we are making long-term investments in technology-, supply-chain- and new-customer-centric capabilities that will begin to benefit the business in fiscal 2020 and beyond,” said van Raemdonck. “Our multiyear strategic plan is designed to both protect and advance our existing business, while also positioning Neiman Marcus Group for long-term growth.”
Despite its sunny results (which are in line with the upward trend most of its competitors are seeing this year), the group is saddled with a significant debt burden of $5 billion, of which $2.8 billion is due in October 2020. A restructuring is expected in the next year with the help of investment banking firm Lazard Ltd.
Neiman Marcus’s debt can be traced back to its $6 billion buyout in 2013 by Ares Management LLC and the Canada Pension Plan Investment Board.