Neiman Marcus Posts 4Q Loss

The Neiman Marcus Group Inc. (Dallas) reported that its losses more than doubled during its fourth quarter ending Aug. 2, 2008, and it says things aren’t likely to improve.

Though sales rose about 2 percent in the quarter, the fashion retailer’s net loss jumped to $6.2 million. A year ago, it posted a $15.9 million loss. Same-store sales dropped 1.4 per cent in the quarter.

Chief executive Burt Tansky warned that the country’s financial situation pointed to even tougher times ahead for the retailer as the same-store sales drop indicated shoppers are spending less freely as they face higher fuel and food costs, a troubled housing market and, now, a financial crisis on Wall Street. The failure of Lehman Brothers and the bailout of American International Group, will further pressure high-income customers to buy less, Tansky said.

“Given the recent announcements from various financial institutions, and the current uncertainty in the market, we are anticipating the months ahead will be difficult,” said Tansky. “Our customers are heavily invested in the markets … and turmoil in financial markets, and the ensuing instability, negatively affects customers' buying patterns.”