Annual web sales up and catalog sales down for Neiman Marcus
It’s clear that shoppers at Neiman Marcus Group Inc. like placing their orders online. In fiscal 2007, the growth of web sales at Neiman Marcus easily outpaced catalog and same store sales.
For the year, Neiman Marcus, No. 36 in the Internet Retailer Top 500 Guide, grew web sales by 23%, compared with 6.2% for same-store sales and a decrease of 12.7% for catalog revenue. The retailer posed web sales of $499 million, which represented 69.7% of total direct market revenues, compared with $405.7 million, or 62.1% of combined direct sales, in 2006.
Catalog sales declined year-over-year to $216.6 million from $248.4 million. “Our Internet business drives this segment,” CEO Burt Tansky told analysts on the company’s recent year-end earnings call.
Overall Neiman Marcus posted net income of $111.9 million on revenue of $4.4 billion in fiscal 2007 vs. net income of $56.6 million on sales of $4 billion in the prior year.
In fiscal 2007 NeimanMarcus.com was updated with new features and functions such as virtual trunk shows that showcase upcoming seasonal fashions and instant style features that allow shoppers to mix and match outfits and accessories for women’s and children’s apparel, Tansky told analysts.
Though the company didn’t mention a specific amount, Neiman Marcus also expects to invest heavily in its web channel in fiscal 2008, beginning with more personalization features and back-end reporting tools. “We are investing a significant amount of capital,” Tansky told analysts.
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