Neiman Marcus Files for IPO

Joe Goldman |

Neiman Marcus, one of America’s most popular luxury retailers, is finally returning to public markets after eight years of private ownership.

According to a company press release, the Dallas-based Neiman Marcus has filed a registration statement with the SEC and plans to use Credit Suisse as the primary underwriter.  The company intends to raise around $100 million, but did not disclose how many shares it will sell and the expected selling price range of each share.

However, Bloomberg reported last month that Neiman Marcus’s owners might seek a valuation of approximately $8 billion for the company, which is around $3 billion more than Neiman Marcus’s $5.1 billion 2005 selling price.                                                                   

Since TPG Capital and Warburg Pincus LLC brought Neiman Marcus private in 2005, luxury retailers have outperformed the market and are doing well as a group.  Over the past eight years, Neiman Marcus has also opened new stores, reached all-time sales records, and expanded its e-commerce business into China, which should all contribute to a higher valuation.

As one of the world’s most prestigious destinations for luxury shopping, Neiman Marcus is best known for ultra-expensive items, a tantalizing Christmas catalogue, and impeccable in-store customer service. The company operates 41 stores and owns Bergdorf Goodman, which is located on New York’s prestigious Fifth Avenue.

For Q3 of 2013, Neiman Marcus reported $1.10 billion in sales and $70.8 million in earnings.  Sales grew 3.6 percent and income increased by a strong 13.0 percent year-over-year. For the 2012 fiscal year, Neiman Marcus reported $4.35 billion in sales and $140 million in net earnings.  The company cited online sales and its smaller Last Call and Cusp stores as areas of exceptional growth.

Neiman Marcus’s strong financial performance and steadfast positioning in the luxury retail market should establish Neiman Marcus’s IPO one of the most anticipated offerings during the upcoming year.  An IPO date and many specifics of the offering remain unknown.

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