What:  Neiman Marcus Group reported a decline in both revenues and profitability in Q1 compared to the previous year.

Why it is important: Neiman Marcus’s financial decline in its fiscal first quarter highlights the challenges in the luxury sector.

EBITDA dropped to USD 95 million from USD 112 million in the prior-year period. Sales also decreased to USD 948 million from USD 1.034 billion in the previous year. Same-store sales fell by 8% in the last quarter. The company attributes the decline in cash to working capital needs and deliberate investments in store improvements, digital upgrades, and strategic initiatives. Neiman Marcus Group remains profitable and has a healthy inventory position.

The CEO of Neiman Marcus Group expects a steady Black Friday weekend and acknowledges the challenges of a volatile macro environment and increased promotional activities in the luxury sector.

Neiman Marcus Group cites slowdown and cautious luxury consumers in Q1