Neiman Marcus Group, showing revenue gains, substantially narrowed its loss for its fiscal fourth quarter ended July 28 to $75.3 million, from $366.3 million in the prior year.
The loss included non-cash impairment charges of $357 million. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $56.1 million compared to $48.2 million in the prior year. EBITDA excludes certain tax payments, adjustments for purchase accounting, changes in, or cash requirements for working capital needs, capital expenditures, and the company’s significant interest expense, and does not reflect the cash requirements necessary to service interest or principal payments on debt. Interest expense was $77.1 million last quarter.
The luxury retailer reported total revenues of $1.13 billion, representing an increase in comparable revenues of 2.3 percent from the fourth quarter of fiscal year 2017.
“The fourth quarter was in-line with our expectations and marked our fourth consecutive quarter of positive sales increases,” said Geoffroy van Raemdonck, chief executive officer of Neiman Marcus Group.
“Online revenues were up 12.5 percent for the quarter and accounted for 36 percent of our overall business. We also delivered healthy gross margin performance through lower markdowns and strong inventory management. As we look to the future, we are making long-term investments in technology, supply chain and new customer-centric capabilities that will begin to benefit the business in fiscal 2020 and beyond. Our multi-year strategic plan is designed to both protect and advance our existing business, while also positioning Neiman Marcus Group for long-term growth.”
For the fiscal year, NMG reported net earnings of $251.1 million, compared to a net loss of $531.8 million in the prior year. Adjusted EBITDA was $477.1 million, compared to $433.8 million in the prior year.
Total revenues were $4.9 billion, representing an increase in comparable revenues of 4.9 percent.
The company recorded non-cash income tax benefits of $391.6 million in fiscal year 2018 due to the impact of the Tax Cuts and Jobs Act.
NMG operates the Neiman Marcus, Bergdorf Goodman, MyTheresa, Horchow, Cusp and Last Call brands.