Neiman Marcus Q3 Loss Increases, Revenue Decreases; gets air to breathe with debt
The Neiman Marcus Group’s continued profit from sales profits in the same business ended in the third quarter. But the company reported good news of its high debt.
The luxury department store recorded a net loss of $ 31.2 million for the quarter ended April 27, compared to a net loss of $ 19.9 million for the same period last year. Adjusted earnings before interest, taxes, depreciation and amortization were $ 126.5 million compared to $ 143.8 million a year ago.
Excluding MyTheresa, adjusted EBITDA in the United States was $ 126.5 million for the third quarter, compared to $ 143.1 million a year ago. (Neiman Marcus, who acquired MyTheresa in 2014, recently announced that it is exploring strategic alternatives for the Germany-based online luxury fashion retailer that also operates a flagship in Munich.)
Revenue declined from $ 1.55 a year ago to $ 1.05 billion. Sales in the same store were down 1.5%, the first decline in six consecutive quarters of growth.
Despite the disappointing results, CEO Geoffroy van Raemdonck was optimistic about the company’s recent efforts, including the acquisition of a minority stake in online reseller Fashionphile, which specializes in used designer handbags and accessories.
“We continue to drive innovation and invest long-term in technology and customer-oriented skills that both enrich the shopping experience and position the company for long-term growth,” said van Raemdonck.
In other, more positive news, Neiman Marcus burdened with about $ 4.6 in debt Billions, announced that it has reached a final settlement with creditors on its previously announced exchange offers. The deal, which gives the retailer some time to pay off debt and support efforts to improve its business, essentially extends loan terms to 2023 and 2024 (from 2020 and 2021).