Luxe Customers Nip Neiman's
By Staff -- Home Textiles Today, 10/1/2007 12:00:00 AM
Despite an unsteady economy, Neiman Marcus' core customer is expected to shop on, executives told analysts on the retailer's fiscal year-end call.
"The luxury consumer will remain a luxury consumer. She will not vacate the idea of buying quality, luxury, the most current fashion and style," said Burt Tansky, ceo. "She may buy less, but she will never vacate the idea that that's part of her interest."
Neiman's is not immune from some macro trends. Sales of its luxury brand home goods have experienced the slackness seen elsewhere in retail. "We've taken a great deal of time to try to understand what the industry's going through, and we seem to be experiencing about the same as the industry," said Tansky.
For the fourth quarter ended July 28, its net loss was $15.9 million vs. a loss of $42 million last year. Sales rose 9.4% to $981.7 million, comps grew 7%. For the fiscal year, Neiman's loss broadened to $111.9 million from a loss of $56.6 million a year ago. Sales jumped 10% to $4.4 billion; comps rose 6.7%.
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