Neiman Marcus 2010 Annual Report Download - page 6

Table of Contents
• Bergdorf Goodman Stores. Bergdorf Goodman is a premier luxury retailer in New York City well known for its couture
merchandise, opulent shopping environment and landmark Fifth Avenue locations. Like Neiman Marcus, Bergdorf
Goodman features high-end apparel, fashion accessories, shoes, precious and designer jewelry, cosmetics, gift items and
decorative home accessories. Our Bergdorf Goodman stores accounted for 13.6% of our total revenues in fiscal year
2011, 13.3% in fiscal year 2010 and 12.4% in fiscal year 2009 and 16.8% of Specialty Retail Stores revenues in fiscal
year 2011, 16.3% in fiscal year 2010 and 15.1% in fiscal year 2009.
Direct Marketing. To augment the operations of our retail stores, our upscale direct-to-consumer operation (Direct
Marketing) conducts online and catalog sales of fashion apparel, accessories and home furnishings through the Neiman Marcus brand,
online and catalog sales of home furnishings and accessories through the Horchow brand, and online sales of fashion apparel and
accessories through the Bergdorf Goodman brand. In fiscal year 2011, we launched a website under the Neiman Marcus Last Call
brand. The Neiman Marcus Last Call website features off-price fashion goods and augments and complements the operations of our
Neiman Marcus Last Call stores.
Direct Marketing generated 18.9% of our total revenues in fiscal year 2011, 18.5% in fiscal year 2010 and 17.9% in fiscal
year 2009. Over one million customers made a purchase through one of our websites or catalogs in fiscal year 2011. In recent years,
internet revenues have increased as a percentage of Direct Marketing revenues. As a percentage of total revenues of Direct Marketing,
internet revenues were 86.3% in fiscal year 2011, 84.2% in fiscal year 2010 and 79.5% in fiscal year 2009. Our catalog business
circulated approximately 45 million catalogs in fiscal year 2011, a decrease of approximately 8% from the prior year. With the
growth of internet revenues, we have reduced catalog circulation in recent years and would expect flat to declining catalog circulation
in the foreseeable future. We regularly send e-mails to approximately 4.6 million e-mail addresses, alerting our customers to our
newest merchandise and the latest fashion trends.
For more information about our reportable segments, see Item 7, "Management's Discussion and Analysis of Financial
Condition and Results of Operations" and Note 15 of the Notes to Consolidated Financial Statements in Item 15.
Our fiscal year ends on the Saturday closest to July 31. Like many other retailers, we follow a 4-5-4 reporting calendar. All
references to fiscal year 2011 relate to the fifty-two weeks ended July 30, 2011, all references to fiscal year 2010 relate to the fifty-two
weeks ended July 31, 2010 and all references to fiscal year 2009 relate to the fifty-two weeks ended August 1, 2009. References to
fiscal years 2012 and years thereafter relate to our fiscal years for such periods.
We make our annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, and related
amendments, available free of charge through our website at www.neimanmarcusgroup.com as soon as reasonably practicable after
we electronically file such material with (or furnish such material to) the Securities and Exchange Commission. The information
contained on our website is not incorporated by reference into this Annual Report on Form 10-K and should not be considered to be
part of this Annual Report on Form 10-K.
The Acquisition
On April 22, 2005, Neiman Marcus, Inc. (the Company), formerly Newton Acquisition, Inc., and its wholly-owned
subsidiary, Newton Acquisition Merger Sub, Inc. (Merger Sub), were formed and incorporated in the state of Delaware. Newton
Holding, LLC (Holding), the Company and Merger Sub were formed by investment funds affiliated with TPG Capital (formerly Texas
Pacific Group) and Warburg Pincus LLC (collectively, the Sponsors) for the purpose of acquiring The Neiman Marcus Group, Inc.
(NMG).
The acquisition of NMG was completed on October 6, 2005 (the Acquisition Date) through the merger of Merger Sub 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 Holding. In connection with the Acquisition, NMG incurred significant indebtedness and became
highly leveraged. See Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity
and Capital Resources." All references to "we" and "our" relate to the Company for periods subsequent to the Acquisition and to
NMG for periods prior to the Acquisition.
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