Neiman Marcus 2009 Annual Report Download - page 27

Table of Contents
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
EXECUTIVE OVERVIEW
The following discussion and analysis of our financial condition and results of operations should be read together with our
audited consolidated financial statements and related notes. Unless otherwise specified, the meanings of all defined terms in
Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) are consistent with the meanings
of such terms as defined in the Notes to Consolidated Financial Statements. This discussion contains forward-looking statements.
Please see "Forward-Looking Statements" for a discussion of the risks, uncertainties and assumptions relating to these statements.
Overview
Neiman Marcus, Inc. (the Company), together with our operating segments and subsidiaries, is a high-end specialty retailer.
Our operations include the Specialty Retail stores segment and the Direct Marketing segment. The Specialty Retail stores segment
consists primarily of Neiman Marcus and Bergdorf Goodman stores. The Direct Marketing segment conducts both online and print
catalog operations under the brand names of Neiman Marcus, Bergdorf Goodman and Horchow.
The Company acquired The Neiman Marcus Group, Inc. (NMG) on October 6, 2005 through a merger transaction with
Newton Acquisition Merger Sub, Inc., a wholly-owned subsidiary of Neiman Marcus, Inc. The acquisition was accomplished through
the merger of the Newton Acquisition Merger Sub, Inc. with and into NMG, with NMG being the surviving entity (the Acquisition).
Subsequent to the Acquisition, NMG is a subsidiary of the Company, which is controlled by Newton Holding, LLC (Holding). Both
the Company and Holding were formed by investment funds affiliated with TPG Capital (formerly Texas Pacific Group) and Warburg
Pincus LLC (collectively, the Sponsors). In connection with the Acquisition, NMG incurred significant indebtedness and became
highly leveraged.
Our fiscal year ends on the Saturday closest to July 31. Like many other retailers, we follow a 4-5-4 reporting calendar,
which resulted in an extra week in fiscal year 2008 (the fifty-third week). All references to fiscal year 2010 relate to the fifty-two
weeks ended July 31, 2010, all references to fiscal year 2009 relate to the fifty-two weeks ended August 1, 2009 and all references to
fiscal year 2008 relate to the fifty-three weeks ended August 2, 2008.
Recent Developments
On September 2, 2010, we announced preliminary total revenues and comparable revenues of approximately $250 million
and $248 million, respectively, for the four-week period ended August 28, 2010. In the four-week August period of fiscal year 2011,
total revenues increased 3.9% and comparable revenues increased 2.9% compared to the four-week August period of fiscal year 2010.
Comparable revenues increased 2.7% in our Specialty Retail stores and increased 3.6% in our Direct Marketing operation for the four-
week August period of fiscal year 2011.
All the financial data set forth above for the four-week period ending August 28, 2010 are preliminary and unaudited and
subject to revision based upon our review and a review by our independent registered public accounting firm of our financial condition
and results of operations for the quarter ending October 30, 2010. Once we and our independent registered public accounting firm
have completed our respective reviews of our financial information for the quarter ending October 30, 2010, we may report financial
results that are different from those set forth above.
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