Neiman Marcus Inc. reported that net income in the latest quarter rose 2.5 percent to $49.6 million from $48.4 million in the year-ago period.
This story first appeared in the November 28, 2012 issue of WWD. Subscribe Today.
In Neiman’s first quarter ended Oct. 27, total revenues were essentially flat at $1.07 billion compared to $1 billion in the prior year, though comparable-store sales increased 5.4 percent. Operating earnings for the first quarter of fiscal year 2013 were $127.8 million compared to $122.8 million for the first quarter of fiscal year 2012.
Last week, Saks Inc., for the quarter ended Oct. 27, reported net income of $22.6 million, compared with net income of $17.8 million in the 2011 quarter. Saks’ total sales were up 3 percent to $713.2 million, and comparable-store sales rose 3.3 percent. But with its comparable sales falling below expectations, and with the impact from Hurricane Sandy, which occurred in the fourth quarter, Saks decided to lower its sales forecast for the fourth quarter to be flat.
The quarterly results at Saks and Neiman’s indicate that the luxury sector is under some pressure, due to the precarious economic climate and with consumers, particularly those that are more affluent, concerned about the fiscal cliff of tax hikes and spending cuts approaching.