Neiman Marcus posted positive results for the quarter based on strong online sales and an increase in full-price transactions.
In a nutshell: Neiman Marcus announced during its second quarter earnings results that sales were up for the second consecutive quarter, an achievement the company hasn’t attained since 2015.
Furthermore, the retail group that includes Neimans, Bergdorf Goodman and MyTheresa, reported it achieved the largest same store increase since the fourth quarter of fiscal year 2012, which it said is a positive indicator that the business is stabilizing.
A “significant” increase in online traffic, a higher percentage of full-price sales and a better inventory position were all credited with driving the healthy comparable sales for the quarter.
Neimans also said its Digital First strategy is serving the company well, evidenced by the fact that e-commerce sales now represent 34 percent of total revenue.
Sales: Neimans reported revenue of $1.5 billion, which is a 6.2% increase over the $1.4 billion in sales the company brought in during the prior-year period. Comp sales during the quarter were up 6.7%.
Online sales increased by 15 percent for Neimans and Bergdorf, which the retailer attributed to better inventory availability and an uptick in traffic from the new marketing strategy that targets e-commerce specifically.
Neimans noted that a desire for logo bags propelled handbags to the top category.
Earnings: The company reported net earnings for the quarter of $372.5 billion, compared to a net loss during the same period last year of $117.1 billion.
CEO’s take: “There are few brands today that represents NMG’s rich heritage and mission to serve the luxury customers at the highest level. NMG is truly unique within our industry with its ability to deliver personalized experiences across channels and brands,” said the company’s new CEO, Geoffroy van Raemdonck. “I am excited about our momentum, which underscores Neiman Marcus Group is truly unique within our industry for our ability to deliver on a personalized luxury shopping experience across channels and brands. We will continue to innovate and invest in the business to envision new ways to serve the luxury customers of today and tomorrow.”