Neiman Marcus cuts 80 jobs after major drop in earnings
On August 18, Neiman Marcus cut 80 jobs, including 50 in the Dallas, TX area. The company’s decision to merge the online buying teams and brick-and-mortar merchandising teams to reduce expenses in the wake of declining profits.
In June, the company reported an 80% decline in profits and a 4.2% drop in sales for the third quarter of FY2016. In the third quarter of this fiscal year, the company realized $3.8 million in earnings compared to the same the quarter for FY2015 with $19.8 million in earnings.
Weaker sales in major tourist destinations have dropped as the U.S. dollar strengthens. Lower energy prices combined with energy company layoffs have also affected Neiman Marcus stores in Texas.
Neiman Marcus is still addled by a class action lawsuit from approximately 350,000 customers whose personal information was compromised in a 2013 data breach. To date, the company has spent several million dollars on legal fees, investigations and to strengthen firewalls to safeguard against a future data breach. It looks like the company will also be responsible for fines and penalties for the data breach.
Neiman Marcus operates 42 Neiman Marcus Stores across the United States and two Bergdorf Goodman stores in Manhattan, as well as 29 Last Call clearance centers, 13 Last Call Studios and 5 Cusp stores. These store operations total more than 6.9 million gross square feet.
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