Neiman Marcus Group Reports March Revenues
CHESTNUT HILL, Mass.--(BUSINESS WIRE)--April 5, 2001--The Neiman
Marcus Group, Inc. (NYSE: NMG.A, NMG.B) announced the following
preliminary company-wide revenues:
5 weeks ended(a) March 31, 2001 April 1, 2000 % Chg -------------- -------------- ----- Total Revenues $ 254.8 million $ 264.2 million - 3.6% Comparable Revenues $ 251.9 million $ 264.2 million - 4.7% 35 weeks ended(a) March 31, 2001 April 1, 2000 % Chg -------------- -------------- ----- Total Revenues $ 2,087.1 million $ 2,000.1 million +4.3% Comparable Revenues $ 2,072.5 million $ 2,000.1 million +3.6% (a) Fiscal year ends July 28, 2001
Comparable revenue results in the five-week period were below the Company's expectations and will affect third quarter and full year earnings.
``March comparable revenues reflected what has become a very challenging retail environment. Volatile financial markets during March exacerbated an already difficult comparison against double-digit revenue gains a year ago,'' said Brian J. Knez, co-chief executive officer. ``In anticipation of this environment continuing, we currently expect third quarter comparable revenues to decline by one to three percent. As a consequence, we are presently planning for flat comparable revenues for the six-month spring season, as more business shifts into the fourth quarter, which is primarily a clearance quarter with lower gross margins.''
Comparable revenues in the Specialty Retail Stores segment, which includes Neiman Marcus Stores and Bergdorf Goodman, were 7.7 percent below the five-week period a year ago.
Comparable revenues in the Direct Marketing segment rose 9.5 percent in the five-week period, with each of the catalogue divisions posting gains and particular strength in Horchow.
``With lower revenues anticipated, we currently believe that earnings per diluted share for the third quarter ending April 28 may range between $0.80 and $0.85,'' said Robert A. Smith, co-chief executive officer. ``Given our cautious outlook for the balance of this fiscal year, we presently anticipate flat earnings per share versus fiscal 2000. In response to these conditions, we are undertaking additional marketing activities to drive top-line sales, and we will further reduce our expense structure to help offset higher fourth quarter markdowns and to position us for the following fiscal year. While we are disappointed with our most recent results, we remain committed to our long-term strategies and believe that they will continue to result in superior financial performance over time.''
The Company's five-week reporting period, which is consistent with last year, reflects a 4-5-4 week third quarter and 52-week year. The Company expects to add a fifty-third week at the end of fiscal 2002.
The Neiman Marcus Group includes the Specialty Retail Stores segment, which consists of Neiman Marcus Stores and Bergdorf Goodman, and Neiman Marcus Direct, the direct marketing operation.
The Company will host a conference call today at 9:30 a.m. (EDT) to review these results. Interested parties may access www.neimanmarcusgroup.com to listen to a live broadcast.
Statements in this release referring to the expected future plans and performance of the Company are forward-looking statements. Actual future results may differ materially from such statements. Factors that could affect future performance include, but are not limited to: changes in economic conditions or consumer confidence; integration of acquired businesses; changes in consumer preferences or fashion trends; delays in anticipated store openings; adverse weather conditions, particularly during peak selling seasons; changes in demographics or retail environments; competitive influences; significant increases in paper, printing and postage costs; and changes in the Company's relationships with designers and other resources. For more information, see the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances.
Neiman Marcus Group, Inc.
Jonna Manes, Director, Corporate Relations