15 December 2021
The Weekly
United States

Some performance metrics in the fiscal first quarter, which ended Oct. 30: company’s sales rose 7.3%; inventory that was down 14.9% compared to the corresponding quarter of 2019. Last quarter NMG’s gross merchandise value was up 13% compared to 2019, and full price selling was up 41%. New customer growth at the group was up 18% and 17% of those placed a second order within 90 days of their first purchase. At Neiman’s itself, sales of its top 20 brands rose 61% versus fiscal 2019. This resulted in a string of three consecutive quarters of double-digit growth for these brands at Neiman’s. Bergdorf Goodman online is driving significant growth. Compared to 2019, new customers grew by 40% and the average order value of Bergdorf’s online was up 14% in Q1.

With a new business plan completed last fall, Neiman Marcus has a three-year, US$600mn cap-ex budget that earmarks US$90mn in supply chain improvements over the next two years, and US$250mn in store renovations with US$100mn of that amount committed by landlords. Also, 60 hard shops, many for luxury leather goods, are in the works for 2022 launches and much of that expense will be shouldered by the brands. A significant portion of the cap-ex budget will target optimizing websites and apps for improved navigation, product recommendations and personalization; enhancing the group’s Connect proprietary clienteling tool used by sales associates to communicate with customers via email, chat, phone calls, photos and videos, and for upgrading order and warehouse management systems and cyber security.