Digital first strategy lifts Neiman Marcus
A "digital first” strategy and investments in technology are accelerating growth at Neiman Marcus, which reported increases in sales both online and in-store.
In its second quarter fiscal report, the company said its business is stabilizing and is positioned for growth after two straight quarters of year-over-year revenue increases. These increases were supported by the company’s “Digital First” strategy and recent investments in new technologies and marketing tools.
“I am excited about our momentum, which underscores Neiman Marcus Group is truly unique within our industry for our ability to deliver on a personalized luxury shopping experience across channels and brands,” said Geoffroy van Raemdonck, Chief Executive Officer. “We will continue to innovate and invest in the business to envision new ways to serve the luxury customers of today and tomorrow.”
In a call with investors, Van Raemdonck said the company’s e-comm business now accounts for more than 34% of total revenues.
Last autumn, Neiman Marcus unveiled a new "Digital First" strategy designed to further its position in the retail space "by anticipating customers' evolving behaviors and engaging them more deeply to drive traffic online and in stores," according to a company press release.
For the second quarter ended Jan. 27, the company reported total revenues of $1.48 billion, representing an increase of 6.2%. Same store sales increased 6.7%. Net earnings were $372.5 million compared to a net loss of $117.1 million in the prior year. Adjusted EBITDA was $154.8 million compared to $126.8 million in the prior year.
Neiman Marcus operates 42 Neiman Marcus Stores across the United States and two Bergdorf Goodman stores in Manhattan. The company also operates 27 Last Call clearance centers, according to its website.