Neiman Marcus reports strong sales and profits for second quarter

Neiman Marcus Group reported an 82% increase in fiscal second-quarter profit after the market closed Wednesday.

Net earnings were $59 million, in the second quarter compared of 2004, which ended Jan. 31, compared with $32 million for the same period of 2003. Total revenues for the period were $1.05 billion, compared with $938 million for the same period the previous year.

Management said the momentum is continuing with a 24.4% increase in February same-store sales.

“By any measure, our performance this quarter was outstanding,” said Burton M. Tansky, Neiman Marcus Group president and CEO. “We surpassed $1 billion in sales for a quarter for the first time. In addition, our operating divisions experienced strong earnings growth.”

Second quarter revenues for the Specialty Retail Stores segment, which consists of Neiman Marcus Stores and Bergdorf Goodman, were $838 million, compared to $756 million in the previous year. Revenues for the second quarter of fiscal year 2004 compared to the second quarter of fiscal year 2003 increased 9.6% and 20.5% at Neiman Marcus Stores and Bergdorf Goodman, respectively. Comparable revenues for Neiman Marcus Stores increased 9.2% for the second quarter of fiscal year 2004. Second quarter fiscal year 2004 operating earnings for the Specialty Retail Stores segment were $73 million compared to $44 million in the second quarter of fiscal year 2003.

Neiman Marcus Direct, the company’s direct marketing operation, reported second quarter fiscal year 2004 revenues of $191 million compared to $161 million in the previous year. Operating earnings for Neiman Marcus Direct increased to $25 million in the second quarter of fiscal year 2004 from $18 million a year ago.