Financial reports: Neiman Marcus, J. Crew

Neiman Marcus net earnings plummet 54%

Dallas–Lower sales coupled with higher inventory markdowns took a huge bite out of the bottom line of Neiman Marcus Group (NYSE: NMG.A), which also mails the Horchow and Chef’s Catalog books. Net earnings for the third quarter fell 54%, to $23 million, from $50 million last year. Total company revenue fell 10%, to $681 million for the three months ended Oct. 27.

Breaking it down by segment, Neiman Marcus Direct, which includes catalogs, reported a 6% quarterly revenue drop, to $97 million from $103 million last year. Operating earnings in the division plunged 92%, to $500,000 from $6.6 million. Quarterly revenue for retail stores decreased 11%, to $561 million.

EBITDA Falls 15% at J. Crew New York—Apparel cataloger/retailer J. Crew reported that third-quarter earnings before interest, taxes, depreciation, and amortization (EBITDA) fell 15%, to $19.1 million for the three months ended Nov. 3.

Revenue declined 3%, to $195.6 million from $202.3 million a year ago. But net sales in J. Crew’s direct business, which includes catalogs, rose 6%, to $65.7 million from $61.9 million. Retail store sales were $96.7 million, down 6% from $102.8 million in the third quarter of 2000. Comparable store sales declined 18% in the third quarter.

Partner Content

Hincapie Sportswear Finds Omnichannel Success in the Cloud - Netsuite
For more and more companies, a cloud-based unified data solution is the way to make this happen. Custom cycling apparel maker Hincapie Sportswear has leveraged this capability to gain greater visibility into revenue streams, turning opportunities into sales more quickly while gaining overall operating efficiency. Download this ecommerce special report from Multichannel Merchant to more.
The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.