Neiman Marcus Thrives

Despite complaints about the weather and concerns about the economy as August sales reports streamed in and the back-to-school season was being evaluated, The Neiman Marcus Group (Chestnut Hill, Mass.) posted a fiscal fourth quarter report that showed a quadrupling of earnings, a 12.7 percent sales increase and a 12.6 percent same-store sales increase.

For the fiscal year ending July 29, the retailer recorded earnings of $134 million, a gain of 41.2 percent from earnings of $94.9 million, and an increase in comparable-store sales for the year of 11.8 percent, and a revenues increase of 16 percent.

The Neiman Marcus Group consists of 31 Neiman Marcus stores, three Neiman Marcus Galleries stores (jewelry, china, silver, crystal, collectibles) and the Bergdorf Goodman store in New York.

Overall, however, August retail reports were not particularly good, showing a composite 3 percent same-store-sales increase. Gap's 14 percent sales drop (reported earlier this week) was the most dramatic, but other large chains – including Dillard's, May Department Stores, JCPenney and Target – had disappointing months. And Sears'strong 5.6 percent same-store-sales increase was attributed to home appliances and garden business rather than to apparel. August is the month of the back-to-school season, most apparel retailer's second-largest selling season and regarded as a harbinger of a strong or weak holiday season. And that has brought to the surface again concerns about Christmas, concerns that had all but disappeared over the last couple of years.