Annual Revenue Down 2.3% at Neiman Marcus

Sep 11, 2002 9:30 PM  By

The Neiman Marcus Group (NYSE: NMG.A), which mails the Horchow, Neiman Marcus , and Chef’s Catalog titles , said fourth quarter revenue for the period ended Aug. 3, increased 5% to $666 million, compared with $636 million last year. Net earnings were $5 million, compared with a net loss of $21 million last year.

For fiscal year 2002, total revenue declined 2.3%, to $2.95 billion compared with $3.02 billion last year. Net earnings declined 7%, to $100 million, compared with $107 million in net earnings last year.

Neiman Marcus Direct reported that quarterly revenue increased 6% to $96 million, compared with $90 million in revenue last year. Operating earnings for Neiman Marcus Direct increased to $6.5 million in the fourth quarter, compared to a $300,000 net loss last year. With the release of its quarterly and annual financial statements, Neiman Marcus Direct will now include its online business as part of direct marketing segment.

“We maintained our tight control of inventory, eliminated certain promotional events and concentrated on our core customer,” said president/CEO Burton M. Tansky in a statement. “This focus allowed us to achieve a 350 basis point improvement in gross margin, resulting in a significant profit improvement from last year.”

Fourth quarter revenue for the Specialty Retail Stores segment, which consists of Neiman Marcus Stores and Bergdorf Goodman, were $553 million, compared to $531 million in the previous year. Operating earnings for the Specialty Retail Stores segment were $14 million compared to a loss of $14 million last year.