Saks profits fall again - still don't want to hire Faust as head menswear buyer.

[reborn]

Neiman Marcus Reports $12.9M Profit

Neiman Marcus Reports $12.9M Profit
by Evan Clark
Posted Wednesday December 10, 2008
From WWD.COM
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Neiman Marcus Inc. did what many of its competitors failed to in the most-recent quarter — post a profit.

Still it was only a partial victory, as earnings for the luxe retailer’s fiscal first quarter fell 83.6 percent to $12.9 million from $78.8 million, when results were propped up by a $32.5 million pension gain.

Sales for the three months ended Nov. 1 dropped 12.9 percent to $985.8 million from $1.13 billion as comparable-store sales decreased by 14.5 percent.

Like most other retailers, Neiman’s reined in its spending as consumer spending slowed, the economy worsened and Wall Street went into panic mode. Capital expenditures in the quarter fell to $33 million from $46 million a year earlier.

It's not surprising. They have a very well defined customer base (however tasteless they may seem IMO). Still, if you walk into the NM in Boston during the week, it's a total ghost town...and the same is true for the new store in Natick. Kudos to NM...the only merch on sale there: ugly Prada Sport sneakers and rubbery Ferragamo laceups.

[Sombre]

It's not surprising. They have a very well defined customer base (however tasteless they may seem IMO). Still, if you walk into the NM in Boston during the week, it's a total ghost town...and the same is true for the new store in Natick. Kudos to NM...the only merch on sale there: ugly Prada Sport sneakers and rubbery Ferragamo laceups.

You're right. I bloody hate the NM in Boston. The sportswear racks are filled with total rubbish whose only appeal I believe is its name. Gucci, Prada, Dolce and Gabbana, Juicy Couture. That sums it up.

I'm guessing there are hidden gems, but it's a double-edged sword. I don't have the time to find them, but if they weren't hidden, they'd probably cease to be gems.

Anyway, to get back on topic, good to see someone post fourth quarter profits. Probably a decent number of stores I'd expect, especially given the massive sales. Recession or not, people still want their LV monogrammed coin purse and their novacheck rain boots for Christmas.

[reborn]

You're right. I bloody hate the NM in Boston. The sportswear racks are filled with total rubbish whose only appeal I believe is its name. Gucci, Prada, Dolce and Gabbana, Juicy Couture. That sums it up.

I'm guessing there are hidden gems, but it's a double-edged sword. I don't have the time to find them, but if they weren't hidden, they'd probably cease to be gems.

Anyway, to get back on topic, good to see someone post fourth quarter profits. Probably a decent number of stores I'd expect, especially given the massive sales. Recession or not, people still want their LV monogrammed coin purse and their novacheck rain boots for Christmas.

you forgot DSquared2...I think that store (NM boston) does more business in the suit department than any of the fashion stuff. Have you been to the Natick Collection? What a total waste!!! That place is always empty and retailers pulled out of leases just leaving the location vacant. It's sad.

Bottega Veneta isn't even worth visiting as it's the size of a hallway closet.

[Sombre]

you forgot DSquared2...I think that store (NM boston) does more business in the suit department than any of the fashion stuff. Have you been to the Natick Collection? What a total waste!!! That place is always empty and retailers pulled out of leases just leaving the location vacant. It's sad.

Bottega Veneta isn't even worth visiting as it's the size of a hallway closet.

I haven't been to the Natick Collection. I'd have to make a day of it and haven't found the time. That's a shame about the retailers. I heard NM was closing its Natick location, which would be horrible because it's supposed to be one of the anchor stores, isn't it?

What you say about Bottega Veneta is disappointing. That's one of the stores I wanted to see because I like Maier's work.

[reborn]

It is sad (the pics are in WTF thread):

Consumers of the World Unite
By ERIC WILSON
Published: January 8, 2009
Saks Fifth Avenue uses Soviet-inspired art in its spring marketing campaign, inspired by the bold graphic designs and propaganda spirit of Constructivist art.

http://www.nytimes.com/2009/01/08/fashion/08ROW.html?partner=permalink&exprod=permalink

I couldn't make this up even if I tried.

[Faust]

This does call for some Cyrillic. долбаёбы.

[AKA*NYC]

It is sad (the pics are in WTF thread):

Consumers of the World Unite
By ERIC WILSON
Published: January 8, 2009
Saks Fifth Avenue uses Soviet-inspired art in its spring marketing campaign, inspired by the bold graphic designs and propaganda spirit of Constructivist art.

http://www.nytimes.com/2009/01/08/fashion/08ROW.html?partner=permalink&exprod=permalink

I couldn't make this up even if I tried.

hmmm this is pretty slick stuff if you ask me. shepard fairey is laughing himself all the way to the luxury box at the obama inauguration...

[Faust]

Saks fired 1000 people this week.

[sbw4224]

Nieman Marcus also laid off 375 workers.

[reborn]

excerpt from ntyimes:

"...Saks is making cuts in other areas, too, including travel, marketing, information technology, procurement and distribution and logistics. The company said it was lowering its planned capital expenditures to about $60 million (less than half of its projected 2008 level). It is also aiming to trim the inventory it receives this year by 20 percent."

Goodbye designer collections, hello Theory & Hugo Boss.

[Faust]

/\ God, I hope so. I just don't want to even be tempted to walk in there.

[sbw4224]

On a Theory note, in today's WWD there was an article on Fast Retailing's (Uniqlo) interest purchasing the rest of Theory. I think they own about 30% as of now. I just can't see how that brand is profitable...

[Faust]

No one can, sbw. It's basically overpriced Banana Republic. You'd think this would be the hardest hit brand in this recession...

[Casius]

I've also read a rumor about Isthimar maybe looking to sell Barneys.

Weird things seem to happen in this state of economy.

[Faust]

From WWD: "Tod’s SpA chairman Diego Della Valle has doubled his investment in Saks Inc. in the past month and now owns 5.9 percent of its common shares."