NEW YORK--Led by strong gains at NM Direct and Bergdorf Goodman, The Neiman Marcus Group Inc. reported earnings rose 10.9 percent in the third quarter ended May 3, before dividend payouts. Earnings rose to $20.7 million, or 41 cents a share, from $18.7 million before the company paid $7.3 million in dividends on preferred stock a year ago. The company last November redeemed all its preferred stock. After preferred dividends, net earnings a year ago were $11.5 million, or 30 cents a share. Results were slightly ahead of Wall Street's average estimate of 40 cents. Shares of NMG closed at 26 5/8, unchanged on the New York Stock Exchange. Sales gained 6.8 percent to $506.5 million from $474.1 million. Same-store sales climbed 4.5 percent. "Demand for luxury goods continues to expand, and our results reflect the strong competitive position which the Neiman Marcus and Bergdorf Goodman brands hold with affluent consumers," Richard A. Smith, chairman and chief executive officer, said in a statement. Smith said NM Direct benefited from a 9.9 percent revenue gain, and a lower expense ratio to generate a "significant" earnings increase in the quarter. Although Bergdorf's same-store sales inched up only 0.4 percent, gross margins and expense ratios both improved, resulting in substantially higher operating earnings there, according to Smith. The core Neiman Marcus chain chalked up a 4.4 percent same-store gain, but gross margins declined from last year's, resulting in flat operating earnings in the period. In a research note, Robert F. Buchanan, an analyst at NatWest Securities, said strength in designer merchandise at the Neiman Marcus chain was offset somewhat by weakness in the lower-priced bridge category. He said NMG is facing a current inventory glut as a result of overbuying some basics in fall 1996. "From what we can tell, management doesn't feel compelled to take markdowns to address the problem, instead preferring to slow down receipts." Total inventories at the end of the period were $490.1 million compared with $421.8 million. Buchanan expects the department store chain to earn $1.73 for the full year, compared with $1.17 a year ago. For the nine months, earnings before dividend payouts rose 15.8 percent to $77.2 million from $66.7 million. After dividend payouts and a loss on redemption of preferred stock, net earnings were $48.7 million, or $1.05 a share, against $44.8 million, or $1.17. Sales were up 7.7 percent to $1.72 billion from $1.58 billion.
@zacposen's go-to holiday gift? Cookies! "I'll usually bake cookies and send them as a gift," said the designer, who recently released his cookbook "Cooking With Zac: Recipes from Rustic to Refined." Get the recipe for his Brown Butter-Chocolate Chip Cookies via link in bio 🍪🍪🍪 #wwdeye #cookingwithzac
For @monsemaison’s pre-fall 2018 collection, Fernando Garcia and Laura Kim honed in on the brand’s many signatures — men’s wear, which was tweaked and feminized through deconstruction, proportion play and lots of bare shoulders. See the rest of the photos on WWD.com #wwdfashion (📷: George Chinese)
On Friday night, @yohjiyamamotoofficial received the Design for Asia Lifetime Achievement Award in Hong Kong. The 75-year-old designer has been celebrated for many years and is best known for his dark and avant-garde tailoring. “In my long career, in design, architecture, [I’ve been to] so many parties, this is the very first time that I have such a warm feeling, I really appreciate this,” Yamamoto said. #wwdfashion (📷: @dominiquemaitre)
Discovery is collaborating with British pop artist @philipcolbert on a new line of clothing and accessories called Discovery Shark. The collection, which will launch next summer for Shark Week’s 30th anniversary, features a whimsical line of women’s and men’s bomber jackets, sweatshirts, bags and more. #wwdfashion
“I’m always a big champion of a female rapper, and I’m glad to see a new voice that feels unique and authentic that’s coming up, and I think we’re going to see more great things from her,” said @itsjeremyscott about @iamcardib, who performed at @moschino’s Art Basel Miami Beach party last night. #wwdeye (📷: @lexieblacklock)
@janellemonae’s “What’s Your Frequency?” room in @refinery29's #29Rooms made its debut this week at the opening of the Los Angeles art exhibit. “It’s about the ongoing conversation around mass surveillance, the weaponization of technology and cultural uniformity. My space was created so that we can come together and talk about the complexities of our humanity,” said Monáe. #wwdeye (📷: @bucknerphoto)
@pantone announced their Color of the Year 2018: Ultra Violet. Nearly 20 months after the musician Prince’s death, fashion is having a purple moment. Varying shades of purple appeared on spring or fall runways, from @christopherkane to @calvinklein. @gucci’s Alessandro Michele bathed his fall runway in ultra violet-colored light at one point. Pantone 18-3838 is meant to “push the boundaries of what inspires us to look upward and outward to the future.” #wwdnews #wwdfashion (📷: @kukukuba)