Neiman Marcus Group (NMG) is touting a ‘prudent’ growth strategy.
The Dallas-based luxury department store unveiled on Wednesday its fiscal year 2022 business highlights, which included a 30% comparable sales increase versus 2021 and an adjusted EBITDA of $495 million.
NMG also reported on Wednesday that it delivered over $5 billion in gross merchandise value and year-over-year gross margin expansion, supported by 80% full price selling. This led to 11% EBITDA margin for fiscal year 2022.
What’s more, the retailer reported that its top 2% of customers drive approximately 40% of total sales, with 80% of top customers having at least $1 million of net worth. NMG added that its high-income consumer spends an average of $25,000 annually, buying with the retailer 25+ times a year.
“We are very pleased with the strong performance delivered in fiscal 2022, which validates our ambitious strategy and our team’s impressive execution,” Geoffroy van Raemdonck, CEO of NMG said in a statement. “Our brand partners come to us to reach our affluent customers through a premier integrated luxury retail experience. We believe our business model positions us well as we navigate the uncertain macroeconomic environment ahead.”
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These new results follow recent investments NMG has made in data and technology. The company completed its acquisition of Stylyze at the beginning of the fiscal year, which through machine learning offers product attribution data and curated content to power relevant shopping experiences across the customer journey.
In April, Farfetch announced a $200 million investment in NMG, which will focus on re-platforming the Bergdorf Goodman website and mobile app in order to “expand its global capabilities and services,” the retailer said.
Looking ahead to fiscal 2023, NMG said it “remains committed” to its “revolutionizing luxury experiences” strategy. In the first quarter, the company appointed Ryan Ross as president of the Neiman Marcus brand. As president, Ross has been tasked with fueling “acceleration by strengthening the brand and customer experience,” according to the company.
“NMG will continue to meet customers where they are through its successful integrated luxury retail model,” the company said in a press release on Wednesday. “Exclusive brand partnerships will continue with nearly 60% of top brands hosting exclusive collections and launches in the fall season.”
