NEW YORK – The Neiman Marcus Group, impacted by $50 million in special items and charges related to its acquisition by Texas Pacific Group and Warburg Pincus, reported a decline in operating earnings for its second quarter ended Jan. 28 to $73 million, compared to $120 million in the second quarter of fiscal year 2005.
The company was also affected by some recent softening in the luxury market overall. However, Neiman’s officials stressed the company continues to perform well, and cited comp-store gains of 6.4 percent in the quarter, as well as a 1.7 percent gain in adjusted operating earnings, to $122 million, compared to $120 million in the year-ago period.
The $50 million in items related to the acquisition involve amortization costs and asset evaluations. In the half, adjusted operating earnings in the half rose 7 percent to $262 million compared to $245 million, while on an unadjusted basis, operating earnings reached $177 million, down from $230 million. Comparable revenues increased 7.3 percent.
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