In its second-largest acquisition, Amazon buys the company for $970 million.
The web generated the only growth in sales for Neiman Marcus in the third quarter. In comparison, retail store sales dropped by 1.6% while total sales and net earnings declined by 1% and 7%, respectively.
The web generated the only growth in sales for Neiman Marcus Inc. in the third quarter ended April 26, 2008.
In Q3, e-commerce revenue for Neiman Marcus rose by 6.7% to $129.5 million from $121.3 million in the prior year, but retail store sales dropped by 1.6% to $893.6 million from $908 million in Q3 of fiscal 2007. Net earnings and total sales also declined. For the third quarter, Neiman Marcus reported total revenue of $1.06 billion, a decrease of 0.93% from $1.07 billion in the third quarter of fiscal 2007. Net earnings also dropped year-over-year by 7% to $55.3 million from $59.5 million in Q3 of fiscal 2007.
For the first nine months of the fiscal year, Neiman Marcus, No. 37 in the Internet Retailer Top 500 Guide, posted e-commerce sales of $434.2 million, an increase of 14.8% from $378.2 million for the same nine months in fiscal 2007. Overall Neiman Marcus put up net earnings of $178.5 million on revenue of $3.6 billion for the first nine months of its current fiscal year, compared with net earnings of $127.8 million on revenue of $3.4 billion in the prior year.
E-commerce accounted for 12% of total sales in the third quarter and the first nine months of fiscal 2008.