Neiman Marcus posted a deeper net loss and a decline in sales for its third quarter, while media reports indicated that the struggling retailer had shelved plans regarding the sale of the company.
According to various media reports, Neiman Marcus had been in talks with Hudson’s Bay regarding a possible merger with Saks Fifth Avenue, but those discussions stalled.
For the third fiscal quarter ended April 29, Neiman Marcus Group reported a net loss of $24.9 million versus net earnings of $3.8 million for the 2016 period. Total revenues decreased 4.9% to $1.11 billion, representing a decrease of 4.9% as comparable revenues slipped 4.9%.
Among non-GAAP metrics, EBITDA was $119.5 million and adjusted EBITDA was $135.9 million in the quarter versus the period a year earlier when EBITDA came in at $166.7 million and adjusted EBITDA was $173.2 million.
Neiman Marcus noted that it excluded from the adjusted EBITDA calculation estimated impacts from the launch of the company’s NMG One integrated merchandising and distribution system in the 2017 first quarter. The company stated that it has continued to experience issues with respect to the functionality and capabilities of certain portions of the system.