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Decrease in store traffic takes bite out of Neiman Marcus in Q3

Neiman Marcus may have reported total revenues of $1.16 billion for the third quarter, compared to $1.10 billion in the prior year, and a comparable-store sales increase of 5.9%, but the company’s profits took a hit, as traffic to brick-and-mortar stores decreased compared to last year.

The company reported a net loss of $2.7 million for the quarter, compared to net earnings of $70.8 million in the prior year, driven in part by a shift in the calendar resulting from the inclusion of an extra week in fiscal year 2013, as well as certain promotional events in April.

According to CEO Karen Katz, expenses related to the cyber attack are up to $8.57 million so far. But the breach is not scaring online shoppers away. Katz said in the conference call this morning discussing the company’s results that growth in online sales is coming from new customers, and she attributes it to the company’s decision to begin accepting Visa and Mastercard.

Looking ahead, the company plans to renovate its Beverly Hills Neiman Marcus store and Bergdorf Goodman woman’s store. Katz added that remodels of the Oak Brook and Palo Alto Neiman Marcus stores are set to start soon, and that its remodeled Michigan Ave. store in Chicago and Florida’s Bal Harbor are paying off with improved sales.

 

 

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