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Neiman’s Posts First Ever Christmas Season Loss

Is there any name more synonymous with Texas wealth than Neimans?

Click on the hyperlink to learn the details of Neimans $500 M + loss. DId Neminas really lose that much money? IN one quarter?  Well not exactly, the actual loss was more like $32 M, still substantial but not half a billion.  The rest is an accounting textbook lesson in how to read financial statements. Neimans had a half billion write down inimpairment charges and goodwill write offs. Neimans was purchased for by a hedge fund, another goldman deal, using you guessed it, lots of debt. Goldman peddled the debt to he public as a good deal.  If Neimans cannot make money during Christmas, remember their famous Christmas catalog, when can they make money?

Write downs were taken on venerable names such as Horchow and Bergdoff Goodman.

Here is a link to the designer names Neimans carries. How many of these will get marked down in the near future. This is what I meant that there are lots of derivatives in the marketplace. These names are a derivative in their value of the marketing cachet they carry. Of course when no one is shopping except at Family Dollar, the value of the cachet well drops….

Expect that the impairment rules will require many more companies to take such 'losses.'

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2 responses to “Neiman’s Posts First Ever Christmas Season Loss”

  1. Sylvia Avatar
    Sylvia

    With less money to spend these days consumers are looking for ways to save money. While Family Dollar stores may be priced less, the quality of the merchandise is yet to be desired. Like the old saying goes, “you get what you pay for.” In todays economy department stores such as Neiman Marcus will continue to experience losses. Prices can only be slashed so low before they are practically giving away the store. As a single mother of two I look for the best deals available, and that includes price and quality.

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  2. Dennis Elam Avatar
    Dennis Elam

    Sylvia has the right idea, Neimans was never about price and quality, well only price in the inverse sense, high price equals snob appeal. Price and quality is what Kohls, JCP and Target are all about. AS she says, Neimans can only cut so much, they can only lose money or cash flow for so long and still pay on their high interest debt.

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