Jun 13, 2017
Upscale retailer Neiman Marcus posts fourth straight quarterly loss
Jun 13, 2017
Upscale retailer Neiman Marcus Group LLC, which has been exploring strategic options including a sale, on Tuesday reported its fourth straight quarterly loss, as it struggled in the face of intense competition from online and fast-fashion retailers.
The company also reported a 5 percent dip in same-store sales for the third quarter ending April 29.
Neiman Marcus posted a net loss of $24.9 million in the quarter, compared to a profit of $3.8 million, a year earlier.
Apparel retailers including Gap Inc and Victoria's Secret owner L Brands Inc have faced lackluster demand amid stiff competition from Amazon.com Inc and fast-fashion retailers such as H&M and Zara.
Retailers have struggled to cope with changes in consumer tastes as shoppers increasingly spend on travel and big-ticket home improvement items and less on apparel and accessories.
Dallas-based Neiman Marcus earlier this year shelved plans for an initial public offering and said it was exploring options, including changes to its capital structure change or a sale of the company, as it struggles with an enormous debt load.
Saks Fifth Avenue owner Hudson's Bay Co had approached Neiman Marcus about a potential combination earlier this year, but talks have stalled, the Wall Street Journal reported on Friday.
© Thomson Reuters 2022 All rights reserved.