Neiman Marcus Q3 income more than doubles
Dallas — In another sign that the luxury market is turning around faster than other retailing segments, Neiman Marcus’ third-quarter profit more than doubled.
The company’s net income for the three months ended April 30 rose to $46.2 million, from $18.5 million.
Revenue rose 10% to $983.8 million, from $895.2 million last year. Same-store sales increased 9.7%.
Neiman Marcus operates 41 Neiman Marcus stores across the United States, 30 Last Call clearance stores and two Bergdorf Goodman stores in New York.
A mark-down of a different type
Shares of Target are on sale. After beginning the year slightly above the $60 mark, it has been a steady slide downward for the first five months of this year, and now shares regularly trade below $50.
The decline follows what had been a nice run up during the back half of 2010 as shares rose from around $49 at the beginning of last July to end the year at roughly $60. The first five months of 2011 have not been so kind, and Target’s stock gave back all of those gains. One explanation for the backslide is that sales and profits have not materialized as quickly as investors had hoped for as a result of such key initiatives as the REDcard Rewards 5% program and the rollout of the PFresh format to discount stores. While senior executives have asserted both programs are on track and meeting established performance metrics, simply meeting stated objectives usually isn’t enough to move a stock price higher.
Analysts want to see outperformance such as same-store sales that surpass estimates rather than simply fall at the midpoint of a range of possible outcomes. So while Target’s key strategies are working, they are not gaining traction as rapidly as analysts and investors anticipated during the back half of last year while they were biding up shares of Target.
The company’s performance has also been hindered by the pace of economic recovery which is occurring more slowly than some of the more optimistic forecasters presumed last year while this Spring’s high gas prices have shoppers thinking twice before putting discretionary purchases in their shopping carts.
Barneys.com introduces international shipping
NEW YORK — Barneys New York has announced that its e-commerce website, Barneys.com (www.Barneys.com), has introduced international shipping to 90 countries including Canada, South Korea, the United Kingdom, Australia, and China.
According to Barneys, international customers will be able to make payments on Barneys.comin their preferred currency with cost-effective international shipping and handling services.
"Barneys has always been a destination for International tourists and it is a natural step to offer our web services to the rest of the world. Barneys has incredible global brand recognition, but we could only service here in the US. International shipping has fundamentally changed that reach," says Daniella Vitale, chief merchant and EVP of Barneys New York.