Neiman Marcus 2005 Annual Report Download - page 10

Merchandise
Our percentages of revenues (exclusive of revenues generated by leased departments) by major merchandise category are as
follows:
Years Ended
July 29,
2006
July 30,
2005
July 31,
2004
Women's Apparel 35 % 35 % 35 %
Women's Shoes, Handbags and Accessories 19 % 19 % 19 %
Cosmetics and Fragrances 11 % 11 % 10 %
Men's Apparel and Shoes 12 % 12 % 11 %
Designer and Precious Jewelry 10 % 10 % 10 %
Home Furnishings and Décor 8 % 9 % 10 %
Other 5%4%5%
100 %100 %100 %
Substantially all of our merchandise is delivered to us by our vendors as finished goods and is manufactured in numerous
locations, including Europe and the United States and, to a lesser extent, China, Mexico and South America.
We lease certain departments in our stores to independent companies. Our management regularly evaluates the performance of
the leased departments and requires compliance with established guidelines. The companies to which we lease store space are generally
responsible for paying their own employees. We receive commissions from these leased departments on a percent of sales basis.
Our merchandise consists primarily of apparel and accessories from luxury-branded designers. Our major merchandise
categories are as follows:
Women's Apparel: Women's apparel consists of dresses, eveningwear, suits, coats, and sportswear separates—skirts, pants,
blouses, jackets, and sweaters. Women's apparel occupies the largest amount of square footage within our stores. We work with women's
apparel vendors to present the merchandise and highlight the best of the vendor's product. Our primary women's apparel vendors include
Chanel, Prada, St. John, Gucci, Theory, Giorgio Armani, Escada and Ellen Tracy.
Women's Shoes, Handbags and Accessories: Women's accessories include belts, gloves, scarves, hats and sunglasses. Our
primary vendors in this category include Manolo Blahnik, Prada, Gucci, Chanel, Dior and Ferragamo in ladies shoes, and handbags from
Chanel, Prada, Gucci, Marc Jacobs and Judith Leiber.
Cosmetics and Fragrances: Cosmetics and fragrances include facial and skin cosmetics, skin therapy and lotions, soaps,
fragrance, candles and beauty accessories. Our primary vendors of cosmetics and beauty products include La Mer, Bobbie Brown, Sisley,
La Prairie, Chanel and Laura Mercier.
Men's Apparel and Shoes: Men's apparel and shoes include suits, dress shirts and ties, sport coats, jackets, trousers, casual wear
and eveningwear as well as business and casual footwear. In recent years, this category has been an area of increased focus. Bergdorf
Goodman has a fully dedicated men's store in New York. Our primary vendors in this category include Ermenegildo Zegna, Brioni,
Giorgio Armani, and Prada in men's clothing and sportswear; and Ermenegildo Zegna, Prada, Ferragamo and Gucci in men's furnishings
and shoes.
Designer and Precious Jewelry: Our designer and precious jewelry offering includes women's accessories, necklaces, bracelets,
rings, brooches and watches that are selected to complement our apparel merchandise offering. Our primary vendors in this category
include David Yurman, Stephen Dweck and John Hardy in Designer Jewelry, and Henry Dunay and Roberto Coin in Precious Jewelry.
We often sell precious jewelry on a consignment basis.
Home Furnishings and Décor: Home furnishings and décor include linens, tabletop, kitchen accessories, furniture, rugs,
decoratives (frames, candlesticks, vases and sculptures) as well as collectables. Merchandise for the home complements our apparel
offering in terms of quality and design. Our primary vendors in this category include Jay Strongwater, Daum, Waterford, Steuben and
Baccarat.
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