U.S. Neiman Marcus Files for IPO

U.S. Neiman Marcus Files for IPO

Neiman Marcus Group Inc. is looking to end a decade of private ownership and sell shares to the public again

The retailer submitted in the first week of August 2015 a filing to securities regulators Tuesday indicating that it is getting ready for an initial public offering of up to USD 100 million, though that is a placeholder amount. It has not yet hired bankers. The number of shares to be sold, the price range for the offering and other key details have yet to be set.

The IPO registration comes two years after private equity firm Ares Management LLC and Canada’s largest pension fund acquired the luxury retailer for USD 6 billion from two other private-equity firms—TPG and Warburg Pincus LLC—which owned the chain since 2005.

Founded in 1907, Neiman Marcus has long been considered the pinnacle of luxury department store retailing, known for USD 2000 Balenciaga handbags, USD 1300 Etro dresses and USD 800 Manolo Blahnik shoes. Its Christmas Catalogue is filled with fantasy gifts, which in past years have included a Boeing Jet and his-and- her hot-air balloons.

Its higher-end Bergdorf Goodman flagship in New York City was the subject of a 2013 documentary, “Scatter My Ashes at Bergdorf’s,” which among other stories told how John Lennon and Yoko Ono once ordered 70 fur coats from the store as Christmas presents for their friends and family.

 “Our customers are educated, affluent and digitally connected,” Neiman Marcus said in its filing. The company said “approximately 38% of our customers have a median household income of over USD 200,000.”

Even with its elite clientele, it hasn’t always had it easy. TPG and Warburg Pincus held onto Neiman Marcus for an unusually long seven years, while the chain’s sales declined and losses piled up during the financial crisis. They had explored taking the chain public before deciding to sell it outright, people familiar with the situation said at the time.

In June, Neiman Marcus said it swung to a profit for the quarter ended May 2, as revenue increased 5% to USD 1.22 billion. Revenue from existing stores rose 2.2%.

Neiman Marcus was one of the first luxury retailers to make a big push online. Nearly 26% of its revenue now comes from online orders. Last year, it bought MyTheresa.com, an online luxury retailer, which also has a brick and mortar flagship store in Munich, Germany.

The Neiman Marcus and Bergdorf Goodman stores are some of the most productive in department store retailing, averaging USD 589 in sales per square foot.

That compares with about USD 493 for Nordstrom Inc.

The Dallas-based company operates 41 Neiman Marcus department stores, two Bergdorf Goodman stores in New York City and 42 Last Call outlet stores.



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