Neiman Marcus, Inc. reported total revenues in the month of October dropped 25.3% to $286 million from $383 million. Comps fell 26.8%.
In the four-week October period, comparable revenues in the Specialty Retail Stores segment, which includes Neiman Marcus Stores and Bergdorf Goodman, decreased 27.6%. The merchandise category in the Specialty Retail Stores segment that performed the strongest was womens contemporary sportswear.
Comparable revenues at Neiman Marcus Direct in the four-week October period decreased 23.0%. The top selling merchandise category in the Direct Marketing segment was beauty.
Comparable revenues for Neiman Marcus, Inc. for the first quarter of fiscal year 2009 decreased 14.5 percent. For the first quarter of fiscal year 2009, Specialty Retail Stores comparable revenues decreased 15.8 percent. Comparable revenues for the first quarter of fiscal year 2009 compared to last year decreased 16.8 percent and 10.8 percent at Neiman Marcus Stores and Bergdorf Goodman, respectively. Neiman Marcus Direct first quarter fiscal year 2009 revenues were 7.0 percent below last year.
“As we have said, we expect retail demand will remain weak for an extended period of time as our affluent customer reacts to the continuing volatility of the financial markets,” said Burton M. Tansky, chairman and CEO. “However, based on our experience in previous business cycles, we believe our customers buying levels will increase once the economic environment stabilizes.”
Tansky added, “In response to the challenging business conditions, we continue to take actions to stimulate sales through additional promotional events and other activities which result in higher markdowns and related expenses. Further, we are focused on reducing inventory levels and implementing expense control initiatives. We have also reduced our fiscal year 2009 net capital expenditure plan to $100 million – $110 million compared to a previous plan of $135 million – $145 million.”
Tansky stated, “Our business model was designed in anticipation of a downturn in the economy. We believe our capital structure provides adequate liquidity to operate effectively in the current environment. The Fall season represents the peak of our working capital needs. Despite this peak, we currently do not have any outstanding borrowings under our $600 million asset-based revolving credit facility and, at present, do not anticipate utilizing this revolver during the season.”