What: Neiman Marcus Group CEO, Geoffroy van Raemdonck, discussed the luxury retailer's transformation strategy.

Why it is important: The CEO highlights the company's efforts in building relationships with luxury brands and top customers, despite a negative sales trend in the fourth quarter of fiscal year 2023.

Fiscal year 2023 sales were relatively flat compared to the previous year, and revenue in the fourth quarter of 2023 saw double-digit growth compared to the same period in 2019. NMG's liquidity stood at USD 1 billion, allowing for investments in the supply chain, distribution centres, and store renovations. The company also saw a nearly 20% increase in business with its top customers, who spend an average of USD 25,000. Notable designer labels at NMG include Chanel, Dior, Gucci, Brunello Cucinelli, Christian Louboutin, and Louis Vuitton.

While NMG faced pent-up demand early in the year, business normalized and has been consistently ahead of 2019 levels. The company added 800 points of distribution with designers over the past two years, and almost 200 new and emerging brands were added to its assortment. NMG experienced softening in business with its aspirational customers, leading to increased promotionality. Efforts to manage inventory resulted in a relatively flat position compared to the previous year, despite some pressure on profitability in the fourth quarter.

How Neiman’s transformation is working out