As customers return to their social lives, Neiman Marcus believes he has a tailwind of higher sales to build on during the holiday season.
Men’s clothing, women’s shoes, handbags and jewelry were the top-selling categories that drove a 6% sales increase in its fiscal fourth quarter which ended July 30 with report in the same quarter in 2019, said Geoffroy van Raemdonck, CEO of Neiman Marcus.
âThe social calendar is not where it was, and that’s why women’s clothing is still not where it was before,â said van Raemdock. âThe lifestyle is still limited, but we continue to do well with our loyal customers and we have increased the number of new customers. “
The Dallas-based company shared its latest results privately with its owners and corporate debt holders on Tuesday and shared some of the results with The morning news from Dallas. He declined to disclose total sales and actual results in dollars.
âWe expect the social calendar and travel calendar to really boost demand during the holiday season,â said van Raemdonck, noting that many people âhaven’t had the chance to give gifts and gifts. appropriate holiday shopping for nearly two years “.
Luxury and much of retail use 2019 as the year to beat, as the pandemic has temporarily closed stores and canceled events that are boosting fashion spending.
Van Raemdonck said that although most of Neiman Marcus’ products come from Europe, the company has a series of contingency plans if further supply chain disruptions arise and the labor shortage occurs. labor force for seasonal workers is worsening.
âWhat we learned during the pandemic is that this organization is very resilient and can scale very quickly,â he said. “So we look at the holidays with a lot of confidence.”
The good sales increase in the Spring / Summer quarter came as inventories were down 21%, meaning the retailer was able to sell their merchandise at full price. Van Raemdonck said this has translated into “a very strong quarter for us” with a profit margin of 10% of the quarter’s revenue, above pre-COVID levels.
The big important European brands such as Christian Louboutin, Saint Laurent, Brunello Cucinelli and Dior continue to pull the results.
The retailer’s 20 biggest brands have significantly contributed to the improvement in financial results and are up 50% from pre-pandemic levels, he said. âEverything we were selling was at a higher price. “
The new client is being watched closely, he said. Many of them had higher disposable income during the pandemic because they weren’t going out socially or going to work.
New customers are returning at a more frequent rate: 1 in 5 new customers return within 3 months, an improvement from 1 in 6 before the pandemic.
âWe follow them and when we attract them they buy full price and come back faster,â he said, âwhich is all about our strategy of focusing on quality customers that we can. develop to have a high lifetime value with us. “
Neiman Marcus is serious about being the luxury leader, he said, noting that he shut down his Last Call operation last year, leaving only a few locations to function as true customs clearance centers in the country. instead of having a separate brand at a low price.
‘Roaring Twenties’ Could Reshape the US Luxury Market, According to Bain & Co. The company’s annual forecast for May predicted a rebound in the US based on an improved economy, a vibrant stock market, increased consumer confidence and rapid deployment of vaccines.
Globally, Bain forecast that the global personal luxury goods market will be 5% larger in 2021 than it was in 2019.
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