For Neiman Marcus Inc., it’s been one tough year of mounting losses and declining sales.
The luxury chain Tuesday reported a $168.6 million net loss for the fourth quarter ended Aug. 1, including noncash pretax impairment charges of $143.1 million, compared with a net loss of $35.7 million in the prior year’s quarter, when there were $31.3 million in charges.
On an operating basis, the company lost $192.1 million in the last quarter, versus a $6.2 million loss a year earlier. Adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, were $5.7 million, compared with $86.1 million in the fourth quarter of fiscal 2008.
With the nation’s affluent dramatically curtailing their store visits and purchasing less per visit, Neiman’s total revenues in the quarter fell to $768 million, compared with $1.03 billion in the prior year. Comparable revenues decreased 23.4 percent.
For the fiscal year, including charges of $703.2 million, the company reported a net loss of $668 million. Neiman’s dropped about $1 billion in sales to $3.64 billion for fiscal 2009, versus $4.6 billion in fiscal 2008.
“Fiscal year 2009 was a very challenging year for our company. We quickly began addressing the many challenges we faced due to the sharp decline in our business, precipitated by the downturn in the economy,” said Burt Tansky, chairman and chief executive officer, who will discuss the results in more detail today in a conference call with Wall Street analysts.
“We tightly managed our expenses, resulting in a total reduction of $183 million, which included the elimination of approximately $100 million of nonvariable costs from our expense structure this year,” Tansky added. “We also aggressively reduced our inventory levels to be more in line with demand, ending the year with 23 percent less merchandise than last year.”
On the brighter side, Tansky noted that Neiman’s ended the year with $323 million in cash, representing an $84 million increase from last year, and recently renegotiated its $600 million revolving credit facility and extended its maturity to 2013.
The charges for fiscal 2009 include $329.7 million related to goodwill, $343.2 million related to trade names and $30.3 million for long-lived assets.
In yet another fashion show shuffle, @elleryland is moving its show in sync with the Paris couture calendar — though the brand is still keeping one foot on the city’s ready-to-wear schedule. Their runway show in January will coincide with the launch of a new strategy: designing two main collections each year instead of four, which will then be released in four drops. “As we all know, the system needs to change. We need to show sooner to give time back to artisans and designers to do what they do best — create,” said founder Kym Ellery. #wwdnews #wwdfashion (📷: @kukukuba)
@maxmara’s classic 101801 coat was the cornerstone of its pre-fall 2018 collection. The design team expanded the traditional double-breasted, kimono-sleeved style into a trapeze coat, lean belted styles and a peacoat and presented them in monochromatic looks – like the camel one pictured here. #wwdfashion #prefall18 (📷: George Chinsee)
The @cfda has shifted the dates of #NYFW, with Men’s showing on February 5 through February 7, and Women’s will directly follow, running from February 8 through 14. The preliminary schedule will be released on the CFDA’s web site in the next few days, but Mark Beckham, VP of marketing for the CFDA, revealed that @rafsimons will be back to close the men’s-specific part of the week with a show on February 7 #wwdfashion (📷: Kelly Taub)
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Known for his sleek, sophisticated American glamour, Norman Norell is the subject of an upcoming exhibition at @fitnyc. “Norell: Dean of American Fashion,” which runs from February 9 through April 14, will feature approximately 100 ensembles and accessories. His best work is exemplified by the designer’s glittering “mermaid” gowns frosted with thousands of hand-sewn sequins – like the one pictured. (📷: William Helburn) #wwdfashion
For pre-fall 2018, @balmain didn’t let go of the glitz. A crystal embroidered baseball jacket priced at around $40,000 hangs in the “couture” section of the brand’s first men’s pre-collection. Sporting the words “Balmain Army” across the back, the item took around two months to make. “When it was completed, it was like Christmas, it was like, ‘It’s done, it’s exactly what I wanted,’” said Balmain’s creative director @olivier_rousteing during a tour of the collection in a Paris showroom on Monday. #wwdfashion