The Neiman Marcus Group, Dallas, had revenue of $681.5 million during its third fiscal quarter of 2001, down 0.3% from $683.8 million a year ago. During the same period, its net earning fell 15.5%, from $45.2 million to $38.2 million. The quarter ended April 28.
Neiman Marcus Direct, which saw strong performances from its Chef’s Catalog and Horchow businesses partly offset by weakness in its apparel lines, had a 3.2% increase in revenue, from $85.2 million to $88 million. The segment’s operating earnings slipped from $7.1 million a year a go to $6.7 million, which the company attributed to lower gross margins and higher paper and circulation costs.
Although it did not break out numbers, Neiman Marcus also said that revenue from its online operations, NeimanMarcus.com, quadrupled compared with last year’s level.
By contrast, its third quarter specialty retail store segment revenue fell 1.4%, from $581 million to $572.6 million, and its earnings dropped from $80.6 million to $63.8 million.
The company is also eliminating 190 positions, out of 12,500 total employees, across its three divisions – its stores, Bergdorf Goodman’s, and Neiman Marcus Direct.
The positions eliminated would be a combination of attrition, transfers and layoffs, Jonna Manes, a Neiman Marcus spokesperson, told DIRECT Newsline. Of the 70 positions being eliminated in Dallas, 30 were outright terminations.
“No sales associates or telemarketing representatives” will be among those positions cut, said Manes. The company is not breaking out staff reductions by business unit any further, although Manes indicated that the other positions being eliminated throughout the company’s 50 locations are mostly administrative positions.
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