Exhibit 99.1
The Neiman Marcus Group Reports January Revenues
DALLAS--(BUSINESS WIRE)--Feb. 2, 2006--The Neiman Marcus Group, Inc.
announced the following preliminary company-wide revenues:
4 weeks ended
January 28, January 29,
2006 2005 % Change
--------------- ------------- ---------
Total Revenues $253 million $236 million 7.1%
Comparable Revenues $244 million $235 million 4.1%
13 weeks ended
(2nd Fiscal Quarter)
January 28, January 29,
2006 2005 % Change
----------------- -------------- ---------
Total Revenues $1,231 million $1,129 million 9.0%
Comparable Revenues $1,194 million $1,122 million 6.4%
In the four-week January period, comparable revenues in the Specialty
Retail Stores segment, which includes Neiman Marcus stores and Bergdorf Goodman,
increased 4.7 percent. Revenue growth trends were the strongest in the Company's
stores in the Southeast and West Coast. The merchandise categories in the
Specialty Retail Stores segment that performed the strongest included women's
contemporary sportswear and designer apparel, designer handbags, shoes, home
decor and men's.
Comparable revenues at Neiman Marcus Direct for the four-week January
period decreased 2.6 percent. Sales were negatively impacted by the Company's
decision to shift certain catalog mailings that occurred in January of the prior
fiscal year to December of the current fiscal year. The top selling merchandise
categories in the Direct Marketing segment included handbags, accessories,
women's designer apparel and contemporary sportswear and men's.
Comparable revenues for the Neiman Marcus Group for the second quarter of
fiscal year 2006 increased 6.4 percent. For the second quarter of fiscal year
2006, Specialty Retail Stores comparable revenues increased 4.5 percent, which
represents a comparable revenue increase of 3.9 percent at Neiman Marcus Stores
and 8.7 percent at Bergdorf Goodman. Neiman Marcus Direct second quarter fiscal
year 2006 revenues were 13.2 percent above last year.
In January 2006, the Company made a $100 million optional principal payment
on its senior secured term loan facility.
The Neiman Marcus Group plans to report second quarter earnings on
Thursday, March 9, 2006 after the market closes. The release will be followed by
a conference call that will be simultaneously webcast.
The Company's four-week reporting period is consistent with last year and
reflects a 4-5-4 week second quarter.
The Neiman Marcus Group, Inc. operations include the Specialty Retail
Stores segment and the Direct Marketing segment. The Specialty Retail Stores
segment consists primarily of Neiman Marcus and Bergdorf Goodman stores. The
Direct Marketing segment conducts both print catalog and online operations under
the Neiman Marcus, Horchow and Bergdorf Goodman brand names. Information about
the Company can be accessed at www.neimanmarcusgroup.com.
From time to time, the Company may make statements that predict or forecast
future events or results, depend on future events for their accuracy or
otherwise contain "forward-looking information." These statements are made based
on management's expectations and beliefs concerning future events and are not
guarantees of future performance.
The Company cautions readers that actual results may differ materially as a
result of various factors, some of which are beyond its control, including but
not limited to: political or economic conditions; terrorist activities in the
United States or escalation in the international war on terrorism; disruptions
in business at the Company's stores, distribution centers or offices; changes in
consumer confidence resulting in a reduction of discretionary spending on goods
that are, or are perceived to be, "luxuries"; changes in demographic or retail
environments; changes in consumer preferences or fashion trends; competitive
responses to the Company's marketing, merchandising and promotional efforts;
changes in the Company's relationships with key customers; delays in the receipt
of merchandise; seasonality of the retail business; adverse weather conditions,
particularly during peak selling seasons; delays in anticipated store openings;
natural disasters; significant increases in paper, printing and postage costs;
litigation that may have an adverse effect on the Company's financial results or
reputation; changes in the Company's relationships with designers, vendors and
other sources of merchandise; the financial viability of the Company's
designers, vendors and other sources of merchandise; the design and
implementation of new information systems or enhancement of existing systems;
changes in foreign currency exchange rates; impact of funding requirements
related to the Company's noncontributory defined benefit pension plan; changes
in the Company's relationships with certain of key sales associates; changes in
key management personnel; changes in the Company's proprietary credit card
arrangement that adversely impact its ability to provide consumer credit; or
changes in government or regulatory requirements increasing the Company's cost
of operations.
These and other factors that may adversely effect the Company's future
performance or financial condition are contained in its Annual Report in Form
10-K and other reports filed with and available from the Securities and Exchange
Commission. The Company undertakes no obligation to update or revise any
forward-looking statements to reflect subsequent events, new information or
future circumstances.
CONTACT: The Neiman Marcus Group, Inc., Dallas
James E. Skinner, 214-743-7625
or
Stacie Shirley, 214-757-2967