Amid a Q4 loss, luxury retailer eyes growth through digital commitment
Despite posting its third annual fiscal loss, Neiman Marcus is launching a new digital strategy to help strengthen the brand going forward.
The struggling luxury chain narrowed its net loss to $366.3 million for the fourth quarter and fiscal year ended July 29, compared to a net loss of $407.3 million in the prior year. Total revenues were $1.12 billion, a 0.5% decrease in comparable revenues from the fourth quarter of fiscal year 2016.
The company credits these smaller losses to its growing online sales. In fact, Neiman Marcus CEO Karen Katz said the retailer’s online business “will continue to outperform our store business at 30% of total sales. It will continue to grow in importance,” according to the Dallas News.
This factor is pushing the company to pursue its new “Digital First” strategy. The program is designed to further its leadership position in the luxury retail space by anticipating customers’ evolving behaviors and engaging them more deeply to drive traffic online and in stores, according to Neiman Marcus.
For fiscal year 2017, Neiman Marcus reported total revenues of $4.71 billion — a 5.2% decrease in comparable revenues. The company also reported a net loss of $531.8 million for the fiscal year compared to a net loss of $406.1 million in 2016.
In addition to growing online sales, the company credits narrower sales declines to greater sales stability at full-line stores, and improved inventory alignment. It is also benefitting from a new inventory system that allows stores to see merchandise in stock across both chains and in warehouses, according to Dallas News.
No comments found
Perfumania’s bankruptcy plan gets court approval
Perfumania Holdings received legal approval to move forward with its reorganization strategy.
The nation’s largest discount retailer of perfumes and specialty celebrity and designer fragrances filed for Chapter 11 bankruptcy protection in late August, with a goal of moving its business forward. The retailer filed with a prepackaged plan in hand that outlined the steps needed to revise its business model — a strategy that would rework $200 million in debt, according to Law360.
On Friday, the U.S. Bankruptcy Court for the District of Delaware approved the retailer’s restructuring plan, According to the new strategy, Perfumania will continue to operate as a privately-held company, and the retailer will close underperforming stores.
The company will also continue to pay vendors and suppliers in full, and cancel all outstanding shares of Perfumania common stock. However, shareholders will be given the opportunity to receive consideration of $2 per share in exchange for completing a shareholder release form.
The retailer will receive an equity infusion from certain current shareholders and holders of its unsecured debt. This equity will be used to make distributions, to fund the consideration being paid to shareholders who submit a shareholder release form, and to fund ongoing operations, Perfumania said in a statement.
The reorganization plan is expected to go into effect on Wednesday, Oct. 11, according to the company.
No comments found