On Tuesday, Neiman Marcus, a high-end department store, is reportedly exploring potential strategic alternatives, including a sale of the company or other assets.
Neiman Marcus, which also operates the Bergdorf Goodman and MyTheresa brands, may be in talks to sell itself to Hudson’s Bay Company, the Canadian retail giant that owns other upscale retailers Saks Fifth Avenue and Lord & Taylor. According to The New York Times, Hudson’s Bay had also been discussing a possible merger with department store stalwart Macy’s (M – Free Report) .
This announcement comes after Neiman Marcus reported a 6.8% decline in comparable sales during its recently ended quarter. Its total revenue fell 6.1% during that quarter, too, to $1.4 billion, with adjusted earnings of $126.8 million compared with $183 million in the prior year period.
Like many of its peers, the Dallas-based chain has struggled with decreased traffic, the shift to online shopping, and trying to keep up with Amazon (AMZN – Free Report) , as well as a prolonged period of low fuel prices, which has hurt the spending power among its consumers in Texas; many of its 42 stores are concentrated around the state’s metropolitan areas.
Neiman Marcus actually had plans for an IPO, but abandoned those back in January. The retailer is currently owned by private equity firm Ares Management LP (ARES – Free Report) and Canada Pension Plan Investment Board; the acquisition went through in 2013 for $6 billion.
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