By Aisha Al-Muslim 

Neiman Marcus Group Ltd. had a wider net loss and lower revenues in the latest quarter as the department-store owner faced lower same-store sales.

The closely held Dallas-based luxury retailer reported total revenue for the third quarter dropped more than 9% to $1.05 billion. Same-store sales fell 1.5% from a year earlier.

Neiman Marcus recorded a net loss of $31.2 million, compared with a net loss of $19.9 million, a year earlier. Operating earnings fell more than 19% to $41.2 million.

Neiman Marcus owns it namesake stores, as well as Bergdorf Goodman, Last Call, Horchow, Cusp, and Mytheresa retail brand names. The luxury retailer has continued to invest in its business, integrating its e-commerce and store operations and opening a flagship store in New York City's Hudson Yards development in March.

Neiman, like Hudson's Bay Co., Macy's Inc., J.C. Penney Co. and other retailers, has struggled with the consumer shift toward online shopping and new competitors that make it hard to raise sales at its core department-store holdings.

On Monday, a group of Hudson's Bay Co. shareholders that includes the retailer's chairman made an offer to take the company private. Hudson's Bay owns Saks Fifth Avenue and Lord & Taylor.

Leading the offer is company Chairman Richard Baker, Rhône Capital LLC, WeWork Property Advisors and other shareholders that together control 57% of the shares outstanding. The offer values Hudson's Bay at 9.45 Canadian dollars ($7.12) a share -- a 48% premium to the company's closing share price Friday.

Hudson's Bay also held discussions in 2017 about acquiring Neiman Marcus, but it resulted in no deal.

Recently, Neiman Marcus has pushed its lenders into refinancing its debt load set to mature over the coming years. Neiman Marcus offered existing lenders a debt exchange deal that would leave those that don't participate more exposed to losses if the company files for bankruptcy down the road.

In the recent quarter, ended April 27, the company's adjusted earnings before interest, taxes, depreciation and amortization, or Ebitda, was $126.5 million, down from $143.8 million a year ago. It had $4.46 billion in long-term debt.

Neiman Marcus accumulated its debt over two private-equity buyouts. Its current owners are Ares Management LLC and the Canada Pension Plan Investment Board.

 

(END) Dow Jones Newswires

June 11, 2019 11:01 ET (15:01 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
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