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Neiman Marcus’s co-owner is a key player in Keystone Tar Sands pipeline

November 29, 2011

Dallas icon, the one, the only Neiman Marcus has just posted that they had almost doubled their first quarter profit and say that the customer is ‘spending with confidence’. You can read more about their fabulous business by reading today’s article from the Dallas News below:

By MARIA HALKIAS

Staff Writer

mhalkias@dallasnews.com

Neiman Marcus Inc. almost doubled its fiscal first-quarter profit on higher sales and said Monday that its most affluent luxury customers are “spending with confidence.”

The Dallas-based luxury retailer has armed its sales associates with smartphones and an application it developed to manage client data. Staffers have started using it to text and email photos to their clientele and are making sales remotely.

Precious jewelry is selling well, as are fantasy gifts from its Christmas catalog, such as a $125,000 custom library and 10 2012 Ferrari FF cars that sold out in 15 minutes, said chief executive Karen Katz.

Still, the company remains “concerned with the broader economy and its effects on our customer,” Katz told analysts on a conference call to review results. While day-to-day store sales don’t mirror stock market volatility, “customers are very attuned to the fluctuations in the market and sensitive to the world economic news.”

Neiman Marcus, which also operates Bergdorf Goodman and Last Call stores and the Horchow catalog, has been spending on technology to enhance customer service in stores and online.

Wi-Fi is being installed in all its stores, and associates are already making sales through their new smartphones, Katz said. A precious-jewelry associate emailed a customer a photo of a $12,000 emerald necklace, and the customer bought it and asked about matching earnings, she said.

Another staffer sold $6,000 worth of merchandise in an hour after sending five messages to customers.

“To us, these smartphone transactions represent how our customer has embraced the philosophy of shopping with Neiman Marcus anywhere, anytime and anyplace,” Katz said. “We are very excited about the impact the phones will have in our business and our ability to deliver even more responsive customer service.”

The company is also spending to improve its e-commerce shopping experience and started accepting Visa and MasterCard in stores this month. Katz said it was too early to tell how the new cards would contribute to sales.

The Dallas-based luxury retailer reported net income of $48.4 million in the three months that ended Oct. 29, compared with $25.7 million in the same period last year.

As reported earlier this month, total sales increased to $1 billion from $927.2 million a year ago. Same-store sales were up 8 percent.

Earnings before interest, taxes and other items were up 12 percent to $168.3 million from $150.9 million a year ago. Operating income was $122.8 million, compared with $99.8 million in last year’s first quarter.

Overall, luxury retailers have bounced back faster from the recession than retailers who cater to middle- and lower-income shoppers. The category is expected to do well this holiday season.

The luxury segment has been “on a tear,” said Sherif Mityas, a partner in the retail practice of A.T. Kearney. “I think people are going to be surprised at how much better it’s going to do this year.”

Luxury apparel has “amazingly nice-size margins,” so when sales improve, profits grow exponentially, he said. “Warmer weather hasn’t helped the sale of cashmere and fur, but those will be strong in December.”

Neiman Marcus was taken private in 2005 by TPG and Warburg Pincus in a $5.1 billion leveraged buyout. The company’s public debt requires it to report quarterly results.

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So DARRD was curious about Warburg Pincus and decided to investigate as to who is the co owner (with TPG) of Neiman Marcus. As it turns out, Warburg Pincus is a low profile investment firm who has their hands in many businesses like Neiman Marcus. Good for them. This is America, where anyone can become rich and famous. 

We find that Warburg Pincus, co owner of Neiman Marcus along with TPG also has a $1 billion investment into the Keystone Pipeline also known as ‘Tar Sands’. The very infamous pipeline that is proposed to run from Canada down through the middle of the United States into Texas and then into the Gulf of Mexico.The approval was recently postponed by our President due to the huge public outcry over concerns with regards to the environment. Even Nebraska was making plans to sue the government to prevent it from coming through their state.

Proof you need about the Warburg Picus investment? CLICK HERE

You can also read more news about Neiman Marcus, and the controversial pipeline at TEXAS SHARON’s SITE

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