Neiman Marcus racks up fifth straight quarter of same-store sales gains
Neiman Marcus Group LTD reported a wider third quarter loss as its debt continues to take a toll on the company’s earnings.
The luxury retailer reported a net loss of $28.2 million for the quarter ended Oct. 27, compared with a net loss of $26.2 million in the year-ago period. Interest expense to manage the firm’s heavy debt were significant, totaling $80.5 million in the quarter. Adjusted earnings before interest, taxes, depreciation and amortization rose to $135.3 million from $122.3 million.
Total revenues inched down to $1.093 billion from $1.096 billion. Same-store sales rose 2.8%
“Our first quarter results, marking our fifth consecutive quarter of comparable revenue increases, demonstrate the ongoing stabilization of our business,” said Geoffroy van Raemdonck, CEO, Neiman Marcus Group. “We continue to focus on delivering on our plan this year, while also positioning the company for future growth. We will continue to drive innovation that enriches the shopping experience, including investing in personalization and omni-selling.”
Neiman Marcus is burdened with $4.6 billion in debt (related to two leveraged buyouts), almost all of which comes due in 2020 and 2021. The retailer has been in discussions since late fall with groups of creditors about various options, including one that would it give it more time to pay back its loan. In late November, the retailer and its lenders ended their debt negotiations — at least for the time being. Neiman Marcus still has time to try and get the debt extended, MarketWatch reported.
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