Neiman Marcus 2002 Annual Report Download - page 5

PART I
ITEM 1. BUSINESS
Business Overview
The Neiman Marcus Group, Inc. (the Company) is a high-end specialty retailer operating principally through specialty retail stores,
consisting of 35 Neiman Marcus stores, two Bergdorf Goodman stores and fourteen clearance centers and through Neiman Marcus
Direct, the Company's direct marketing operation.
The Neiman Marcus stores are in premier retail locations in major markets nationwide and the Bergdorf Goodman stores are located in
Manhattan at 58th Street and Fifth Avenue. Both Neiman Marcus and Bergdorf Goodman stores offer high-end fashion apparel and
accessories, primarily from leading designers.
Neiman Marcus Direct, the Company's upscale direct marketing operation, conducts catalogue and online sales through three brands
— Neiman Marcus, Horchow and Chef's Catalogue. Under the Neiman Marcus brand, Neiman Marcus Direct primarily offers
women's apparel, accessories and home furnishings. The Horchow brand offers quality home furnishings, linens, decorative
accessories and tabletop items, while the Chef's Catalogue brand offers gourmet cookware and high-end kitchenware. Neiman Marcus
Direct also operates the NeimanMarcus.com, Horchow.com and ChefsCatalog.com websites, offering luxury goods, home furnishings
and high quality cookware to the online consumer.
For more information about the Company's reportable segments, see Item 7, Management's Discussion and Analysis of Financial
Condition and Results of Operations and Note 15 to the Consolidated Financial Statements in Item 15.
The Neiman Marcus Group, Inc. is a Delaware corporation that commenced operations in August 1987. Prior to October 22, 1999,
Harcourt General, Inc. (Harcourt General), a Delaware corporation based in Chestnut Hill, Massachusetts, owned approximately 54
percent of the outstanding common stock of the Company. On October 22, 1999, Harcourt General distributed to its shareholders
approximately 21.4 million of the 26.4 million shares of the Company's common stock held by Harcourt General and subsequently
divested itself entirely of any holdings in the Company's stock.
The Company makes its annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K available free
of charge through its website at www.neimanmarcusgroup.com as soon as reasonably practicable after it electronically files such
material with (or furnishes such material to) the Securities and Exchange Commission. The information contained on the Company's
website is not incorporated by reference into this Form 10-K and should not be considered to be part of this Form 10-K.
Description of Operations
Specialty Retail Stores. Neiman Marcus stores offer women's and men's apparel, fashion accessories, shoes, cosmetics, furs, precious
and fashion jewelry, decorative home accessories, fine china, crystal and silver, epicurean gifts, children's apparel and gift items.
As of September 15, 2003, the Company operated 35 Neiman Marcus stores, located in Arizona (Scottsdale); California (five stores:
Beverly Hills, Newport Beach, Palo Alto, San Diego and San Francisco); Colorado (Denver); the District of Columbia; Florida (six
stores: Coral Gables, Fort Lauderdale, Orlando, Palm Beach, Tampa and Bal Harbour); Georgia (Atlanta); Hawaii (Honolulu); Illinois
(three stores: Chicago, Northbrook and Oak Brook); Missouri (St. Louis); Massachusetts (Boston); Minnesota (Minneapolis);
Michigan (Troy); Nevada (Las Vegas); New Jersey (two stores: Short Hills and Paramus); New York (Westchester); Pennsylvania
(King of Prussia); Texas (six stores: two in Dallas, one in Plano, one in Fort Worth and two in Houston); and Virginia (McLean). The
average size of these 35 stores is approximately 138,000 gross square feet and they range in size from 53,000 gross square feet to
224,000 gross square feet.
The Company plans to open a new Neiman Marcus store in San Antonio, Texas in fiscal year 2006.
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