Luxury Goods Department Neimanmarcus Is Experiencing An Extremely Difficult Period.

Neiman Marcus Niemann is an American business.

The main chain high-end department store is the most high-end and unique in the world today.

Commodity retailers have a history of over 100 years.

Retail sales of luxury goods

As well as the impact of the stagnant tourism industry, the US luxury goods department NeimanMarcus group is experiencing an extremely difficult period. The company is striving to reduce operating costs, including layoffs and salary cuts. In recent quarters, the group will pay more attention to refund orders, raise the inventory level of suppliers and hold more discount promotions.

Last year, Neiman Marcus group failed to apply for IPO. According to people familiar with the matter, the group will not start IPO again.

NeimanMarcus group shareholders revealed that the group started looking for buyers in August last year, when the group was also preparing for IPO. Due to the poor stock market environment, the group's performance was full of challenges, and the RMB was also depreciating, which led to the IPO group project being shelved.

According to foreign media reports last Friday, group chairman and CEOKarenKatz wanted to sell NeimanMarcus, and were discussing with Chinese buyers the terms of purchase. NeimanMarcus group did not comment on the report.

According to people familiar with the matter, KarenKatz met with top executives of China's Ampang insurance group, which has successfully acquired the WaldorfAstoria hotel in New York. However, a person with knowledge of the matter denied that KarenKatz was looking for buyers.

There are well-informed sources, Neiman Marcus group shareholders AresManagementLLC and Canadian investment company Pension PlanInvestment intends to sell the group.

In 2013, Ares Management LLC and Pension PlanInvestment purchased the luxury retailer from TPG and Warburg Pincus at a price of US $6 billion.

At present, Neiman Marcus Group operates Neiman Marcus, Bergdorf Goodman, Mytheresa, Cusp, Horchow and LastCall.

In recent quarters, Neiman Marcus has been working to clean up inventories and reduce staff salaries and reduce group expenses, as consumer demand for luxury goods has led to sluggish performance.

Last fall, the company cut 500 jobs, but neither senior positions nor sales positions were affected.

Fashion analysts predict that due to the decrease in Neiman Marcus stores and limited space for sales growth, Neiman Marcus opened its first store in Roosevelt mall earlier this year. It is revealed that Neiman Marcus will open a store in New York in 2018.

In addition, NeimanMarcus will further expand its overseas market. Apart from operating Mytheresa.com at headquarters, it will also develop neimanmarcus.com business, which covers China.

In the first quarter of, net profit fell sharply from 80.8% US dollars to $3 million 800 thousand in the first quarter of last year, and total revenue fell 4.2% to 1 billion 170 million US dollars from 1 billion 220 million US dollars, while sales in the same store decreased by 5%. At the analysts' conference call this month, although Neiman executives did not show any concern.

However, analysts said that apart from the growth of business, debt is another problem. According to the standard & Poor's index, the company's total liabilities amount to 4 billion 800 million dollars. Due to debt pressure, the group will pay interest of $300 million a year.

Donald Grimes, group chief operating officer and chief financial officer, said that the reason for the company to repay its debts in cash is that the company has sufficient cash flow, and shareholders agree that using cash compensation is the best mode.

KarenKatz disclosed that the company currently has 76 million dollars in cash and a revolving credit line of $265 million.