A Neiman Marcus sale has been rumored for awile, especially now that the company has reported its sixth consecutive quarter of sales declines.
Neiman Marcus announced on Tuesday that it’s exploring all options which includes a sale of the company.
It was on Tuesday that the retailer announced fiscal second quarter results. Neiman Marcus reported that sales during the holiday quarter fell 6.1 percent to $1.40 billion. In its second fiscal quarter, the company went into a loss of $117.1 million compared with a profit of $7.9 million last year. The company also took a $153.8 million impairment charge to write down the value of its Neiman Marcus brand.
The retailer has said that it is “undertaking a process to explore and evaluate potential strategic alternatives, which may include the sale of the company or other assets, or other initiatives to optimize its capital structure, as well as a number of other alternatives.”
With more than 100 years in business, and over 4,000 employees in Dallas, the sale or break up of the company could have some serious effects. However, most people don’t know that the company hasn’t been owned by the actual Marcus family since the ’60s.
Neiman marcus has been bought and sold many times, and more than most companies.
According to CEO Karen Katz who spoke on a conference call, while Neiman Marcus remains at the forefront of luxury shopping, people are shopping less.
She said that ongoing problems with new systems, which included inventory tracking, resulted in some sales losses in the last six months, she said. Problems kept inventory from going to the right stores and miscounted items. That lack of transparency caused problems with its ability to pay vendors in a timely manner.
Neiman Marcus operates 43 Neiman Marcus stores, two Bergdorf Goodman, and 43 other stores that include Last Call clearance centers and five Cusp contemporary fashion stores, as well as MyTheresa store in Munich and the Horchow home furnishings catalog.