Neiman Marcus 4Q Loss Widens On Impairment Charge

Neiman Marcus Group Inc.'s fiscal fourth-quarter loss widened as the company took hits from a large impairment charge and weakness in the broader retail environment.

In July, the Dallas retailer, known for its opulent holiday catalogs and designer apparel, said it would try to boost sales with promotions until a new strategy to sell less-expensive goods kicks in. Before, Neiman had scrambled to cut inventories and shrink its work force.

For the quarter ended Aug. 1, privately held Neiman posted a loss of $168.5 million, compared with a $35.6 million loss a year earlier.

The latest results included $143.1 million in impairment charges, while the prior-year results had $31.3 million in impairment charges, including a write-down connected to its Horchow trade name.

Revenue fell 26% to $768.1 million, while same-store sales fell 23%.

Gross margin fell to 24.1% from 30.5%.

Revenue in the specialty retail segment fell 27%, while the smaller direct-marketing segment, which includes both the online and print catalog businesses, declined 18%. The specialty retail segment swung to an operating loss while direct-marketing earnings decreased 34%.

Last month, rival Saks Inc. (SKS) reported a 16% drop in same-store sales for its quarter ended Aug. 1, while margins fell on continued markdowns.

- By Joan E. Solsman and Kathy Shwiff, Dow Jones Newswires; 212-416-2357; [e-mail]