What: Geoffroy van Raemdonck, CEO of the Neiman Marcus Group privately disclosed the fiscal fourth-quarter financial figures to lenders and investors. The group wrapped up its fiscal year on a positive note and is “prepared” to meet the demand for holiday shopping and confront the headwinds challenging the industry.

Why it is important: It’s been a year since Neiman Marcus emerged from bankruptcy with new owners and a lot less debt, and since then Neiman’s CEO has been vocal about a recovery. Q4 surpassed the retailer expectations with a 6% comp growth in revenues on a 21% decline in inventory, compared to the fourth quarter in 2019.

Since March 2020, Neiman Marcus and its leaders have been emphasizing efforts to further a full-price positioning after several seasons of pumped up promoting. A year ago, Neiman’s completed its exit from the off-price business. Twenty-two Last Call stores were closed, and only five remain open, though those are just for clearance, not for off-price merchandise.

During the fiscal fourth quarter, the average order value improved 13% compared to the third quarter, due to customers shopping more at full price and more expensive items as well.

Men’s wear, specifically men’s designer and contemporary areas are performing best during the fiscal fourth quarter, followed by women’s shoes, handbags and jewellery. The sneaker business was “extremely strong.” On the softer side was women’s apparel.

New customers are buying more at full price and they come back at an accelerated rate. Previously, one in six new customers would return to shop within three months. Now one in five come back within three months.

neiman marcus q4 results