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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 privately held 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. Earlier this year, Neiman had scrambled to cut inventories and shrink its work force.

Luxury retailers have been especially hard hit as consumers started to cut their spending last year and more consumers in all income brackets traded down to lower-priced stores. In addition, Neiman carries $2.98 billion in long-term debt as a result of its purchase by private-equity firms Texas Pacific Group and Warburg Pincus for $5.1 billion in 2005.

Neiman in previous years had promoted itself as the chain where shoppers could find some of the most expensive designer merchandise around, including over-the-top fantasy holiday gifts such as jewel-encrusted bras.

On Tuesday, Chairman and Chief Executive Burton M. Tansky called the past fiscal year "very challenging," adding the company cut costs by $183 million.

Neiman ended the year with $323 million in cash, up 26% from a year earlier. The company also renegotiated its $600 million revolving credit facility and extended the maturity to 2013 from 2010.

For the quarter ended Aug. 1, 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 Kathy Shwiff and Joan E. Solsman, Dow Jones Newswires; 212-416-2357; joan.solsman@dowjones.com