Neiman Marcus Group Hit By Strong Dollar In Q1

In its fiscal first quarter, ended October 31, the Neiman Marcus Group lost $10.5 million versus earning $196,000 in the period a year earlier. Comparable revenues decreased 5.6% in the quarter.

Revenues were $1.16 billion versus $1.19 billion in last year’s quarter while operating earnings were $54.8 million versus $73.1 million in the year-prior period.

In a conference call, Neiman Marcus CEO Karen Katz called business conditions “challenging.” She said that the strong U.S. dollar was dampening tourism to the United States even among the luxury consumers who are potential Neiman Marcus customers. On top of that, the relative strength of the U.S. dollar had encouraged luxury consumers from the United States to shop abroad where their buying power has improved. She also noted that soft energy prices had hit many customers of Dallas-based Neiman Marcus who work and invest in that sector.