Black Friday Sale! Save huge on InvestingProGet up to 60% off

UPDATE 1-Neiman Marcus posts bigger loss due to asset writedowns

Published 2016-09-26, 11:51 a/m
© Reuters.  UPDATE 1-Neiman Marcus posts bigger loss due to asset writedowns
JWN
-

(Adds details from conference call, analyst comment)

Sept 26 (Reuters) - Neiman Marcus Group Ltd LLC NMRCUS.UL reported a bigger loss for the fourth quarter after the luxury fashion retailer wrote down the value of some of its assets as it struggles with falling sales.

Neiman Marcus, which also operates the Bergdorf Goodman stores, said its net loss widened to $407.25 million in the quarter ended July 30 from $32.88 million a year earlier.

The company had to take more markdowns during the quarter due to soft demand, hurting gross margin, Chief Executive Karen Katz said on a call on Monday.

Neiman Marcus said the non-cash impairment charge of $466.2 million, related to the writedown in fair value of goodwill, tradenames and certain assets, was taken following its annual review of the value of assets during the company's acquisition in 2013.

Neiman Marcus was acquired by Ares Management and Canadian Pension Plan Investment Board for $6 billion from private-equity firms TPG Capital and Warburg Pincus LLC.

The impairment charges highlight the erosion in Neiman Marcus's value over the past year, Neil Saunders, CEO of research firm Conlumino, said.

"This is a deterioration brought about by a steady decline in sales which has, in turn, weakened the company's growth prospects and has tarnished the commercial value of the Neiman Marcus brand name," he said.

The company said sales at established stores dropped 4.1 percent, falling for the fourth straight quarter. Total revenue declined 3.3 percent. pickup in tourist spending and demand for warm weather apparel had helped rivals Macy's Inc M.N , which runs the luxury Bloomingdale's chain, and Nordstrom Inc (NYSE:JWN) JWN.N to report smaller-than-expected drops in comparable sales for the quarter.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.