Neiman Marcus Sales Fall, Forecasts Loss

Upscale retailer Neiman Marcus Inc said Tuesday that its fiscal second quarter revenues declined and that it expects to post a net loss for the period.

January revenue fell 23.1 percent, with same-store sales falling 24.4 percent, Neiman Marcus said, adding that it would cut out or delay some projects to give it added liquidity.

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For its fiscal second quarter, the company, which operates both its namesake and Bergdorf Goodman stores, said same-store sales fell 22.8 percent. Total sales for the second quarter, which ended on Jan. 31, declined 21.4 percent to $1.08 billion, Neiman Marcus said.

"We currently anticipate a significant decrease in our gross margins and a deleveraging of expenses caused by the decline in revenues," Chief Executive Burton Tansky said in a statement.

The company said it ended the second quarter with about $220 million in cash. Neiman Marcus said it has $576 million available in its $600 million revolving credit line.

While it continues to evaluate its capital expenditure plans for fiscal 2009, Tansky said the company would delay or eliminate some projects to hand it additional liquidity.

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