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Neiman Marcus' 4Q Profit Grows to $3M

Comparable-Store Sales +5%

Oct 1, 2013 11:09 AM   By Jeff Miller
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RAPAPORT... Neiman Marcus Group LTD Inc., formerly referred to as Neiman Marcus Inc., reported that its revenue rose 11.3 percent year on year to $1.119 billion for the fourth fiscal quarter that ended on August 3. Comparable-store sales rose 5.4 percent, though a hard total was not provided for this measure. Neiman Marcus, a private company, reported operating earnings of $43.9 million compared with $25.5 million one year earlier. Net earnings jumped to $2.88 million compared with a loss of $11.1 million. Merchandise inventory grew 8.4 percent to $1.019 billion.

For its fiscal year, Neiman Marcus' revenue increased 7 percent year on year to $4.648 billion, same-store sales rose 4.9 percent and profit jumped 16.8 percent to $163.7 million. The retailer's fiscal year included 53 weeks, which added $61.9 million in additional revenue compared with fiscal 2012. By channel segment, specialty retail stores recorded a 4.3 percent year on year increase in sales at $3.617 billion, while online sales surged 17.3 percent to $1.03 billion during the year.

The luxury retailer incurred a pre-tax loss on debt extinguishment of $15.6 million (or $9.4 million after-tax) which included costs of $10.7 million related to the tender and redemption of its senior subordinated notes and the write-off of $4.9 million of debt issuance costs related to the extinguished debt facility.

On September 9, Neiman Marcus announced that it would merge with NM Mariposa Holdings Inc. and Mariposa Merger Sub. LLC, both of which are owned by an investment group consisting of investment funds affiliated with Ares Management LLC and Canada Pension Plan Investment Board. The agreement included a purchase price of $6 billion,  a portion of which will be used at the closing to repay all amounts outstanding under the retailer's existing senior-secured credit facilities. The company’s currently outstanding 7.125 percent senior debentures due in 2028 are expected to remain outstanding immediately following the closing of the transaction.


Tags: Debt, inventory, Jeff Miller, merger, Neiman Marcus, profit, revenue
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