Luxury Sells

The Neiman Marcus Group Inc. (Dallas) reported an 84 percent net earnings increase in its second quarter ending Jan. 31, 2004. Total revenues increased 11.9 percent in the period.

Through the first two quarters of fiscal 2004, the luxury retailer’s earnings are up 88.5 percent and total revenues up 12.5 percent.

In the quarter, the company’s Specialty Retail Stores segment, which consists of Neiman Marcus Stores and Bergdorf Goodman, were up 10.8 percent in revenues — an increase of 9.6 percent at Neiman Marcus stores and 20.5 percent at Bergdorf Goodman. Same-store sales increased 9.2 percent for the quarter.

In February 2004, same-store retail revenues were up 24.9 percent, in all of its geographic regions. Merchandise that sold well included women's fine apparel and contemporary sportswear, designer handbags, jewelry and women's shoes.

“By any measure, our performance this quarter was outstanding,” said president and ceo Burton Tansky. “We surpassed $1 billion in sales for a quarter for the first time. In addition, our operating divisions experienced strong earnings growth. Consistent with our ongoing strategy, we focused on full-price selling and reduced our promotional activities this quarter. These efforts, coupled with disciplined inventory management, contributed to the significant improvement in gross margin.

“Considering our February comparable-store revenue results and the current sales trends we are experiencing, we now anticipate comparable store revenues for the third quarter to increase in the range of 14 percent to 16 percent compared to last year,” Tansky added.