After a rocky few months, Neiman Marcus believes they no longer need a buyer. In March, the company announced a potential sale, but that is no longer the case. Neiman Marcus chief executive officer Karen Katz said in a conference call Tuesday that “any conversations regarding a partial or full sale of the company have terminated.” In addition, when asked about individual asset sales, Katz reiterated, “any conversations are terminated and not happening.”
The Dallas-based company reported a sales decline of 4.9 percent from a year ago. However, the performance is improving and officials believe the company is on the right track. So far, in May and June, the company has seen a “marked improvement” in sales in the past few months at Texas and Florida locations, which are among the most crucial for the company.
Simultaneously, the company has recently had system issues after merging its online and in-store inventories last year. “We had some real challenges, but we believe we’re through the worst of it,” Katz said. “We’ve stabilized the system and it will continue to improve as we move forward.” Although it is difficult to put a finite number on the total loss of sales due to the merger, the company believes they can do nothing but move forward. In March, Neiman Marcus was considering a sale with investment banking firm Lazard Ltd., but it appears that is no longer in the works. An assortment of other companies were rumored to be involved in the sale, but Katz confirmed the brand is doing well enough that sales are no longer needed. The company has taken preventative measures to preserve cash and ensure the long-term success of the company. According to Katz, the new Neiman Marcus location in Fort Worth is “hitting it out of the park,” while they wait for the rest of the mall to open later this fall.
(Featured Image via WWD)