Neiman Marcus January Comps Drop 25.8%

In the four-week January period, comparable revenues in Neiman Marcus' Specialty Retail Stores segment, which includes Neiman Marcus Stores and Bergdorf Goodman, decreased 25.8%. The company experienced weakness across all geographies and merchandise categories in the Specialty Retail Stores segment.

Comparable revenues at Neiman Marcus Direct in the four-week January period decreased 18.3%. The top selling merchandise categories in the Direct Marketing segment included women’s apparel and men’s furnishings.

Comparable revenues for Neiman Marcus, Inc. for the second quarter of fiscal year 2009 decreased 22.8%. For the second quarter of fiscal year 2009 Specialty Retail Stores comparable revenues decreased 25% which represents a comparable revenue decrease of 25.3% at Neiman Marcus Stores and 23.4% at Bergdorf Goodman. Neiman Marcus Direct second quarter fiscal year 2009 revenues were 12.1% below last year.

“As expected, the second quarter was very challenging due to the sharp decline in customer demand in connection with the current economic environment and continued volatility of the financial markets,” said Burton M. Tansky, Chairman and CEO of the company. “In order to stimulate sales and reduce our inventory levels, we were much more promotional than in prior years. We currently anticipate a significant decrease in our gross margins and a deleveraging of expenses caused by the decline in revenues. As a result, we currently expect to report a net loss for the company for the second quarter.”

He added, “During these very challenging times, we have been and continue to focus on increasing sales, reducing inventory levels and implementing numerous expense initiatives. Regardless of the business conditions, we will never waiver from our commitment of providing the highest level of service to our customers.”

“From a liquidity standpoint, we ended the second quarter with approximately $220 million of cash and have $576 million availability on our $600 million asset-based revolving credit facility,” Tansky continued. “Further, we continue to evaluate our capital expenditure plan for fiscal year 2009 and are eliminating or delaying certain projects to provide additional liquidity.”