Bert Tansky, CEO of Neiman Marcus, Inc., paints an unhappy picture of the luxury retail market in light of the current financial crisis. Neiman's was especially hit hard by Hurricane Ike: its Houston Galleria store was closed for five days.
"We've had a terrific run but now we are in our most difficult period since 9/11."
So Burt Tansky, president and chief executive officer of Neiman Marcus Inc., told WWD on Wednesday, just after the luxury chain disclosed disappointing results for the fiscal fourth quarter ended Aug. 2.
The net loss for the period more than doubled to $35.6 million, from $15.9 million in the year-ago quarter. Comparable-store sales dipped 1.4 percent, while total sales rose to $1.03 billion from $981.7 million.
On an operating basis, the retailer also had a loss, of $6.2 million, compared with profits of $32.2 million in the year-ago period.
For the year, net earnings rose to $142.8 million from $111.9 million, operating earnings dropped slightly to $466.4 million from $476.8 million, and comparable sales gained 1.7 percent. This was primarily due to increases at the Internet business; at stores in the New York area, particularly Bergdorf Goodman, and at the Last Call clearance centers. Total revenues increased to $4.6 billion from $4.4 billion.
Precious jewelry, cosmetics, fragrance, men’s and women’s shoes and designer handbags were the strongest categories last quarter.
Tansky says the store has plans to weather the economy, in case things don't pick up in 2009, as many retailers are hoping.
Bert Tansky, CEO of Neiman Marcus, Inc., paints an unhappy picture of the luxury retail market in light of the current financial crisis. Neiman's was especially hit hard by Hurricane Ike: its Houston Galleria store was 
