Neiman Marcus 2014 Annual Report Download - page 44

Table of Contents
ended August 2, 2014 (Successor) and $241.6 million in the thirteen weeks ended November 2, 2013 (Predecessor), representing a comparable increase of
13.4% from fiscal year 2013. New stores generated revenues of $12.9 million in fiscal year 2014, which included revenues of $7.9 million in the thirty-nine
weeks ended August 2, 2014 (Successor) and $5.0 million in the thirteen weeks ended November 2, 2013 (Predecessor).
Comparable revenues for fiscal year 2014 were $4,826.4 million, which included comparable revenues of $3,702.3 million in the thirty-nine weeks
ended August 2, 2014 (Successor) and $1,124.1 million in the thirteen weeks ended November 2, 2013 (Predecessor), compared to $4,574.6 million for the
fifty-two weeks ended July 27, 2013, representing an increase of 5.5%. Changes in comparable revenues by quarter were:
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First fiscal quarter
5.7%
5.4%
Second fiscal quarter
5.5
5.3
Third fiscal quarter
5.9
3.6
Fourth fiscal quarter
4.9
5.4
Total fiscal year
5.5
4.9
Cost of goods sold including buying and occupancy costs (excluding depreciation). COGS for the thirty-nine weeks ended August 2, 2014
(Successor) and the thirteen weeks ended November 2, 2013 (Predecessor) compared to the corresponding periods in fiscal year 2013 were:
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COGS
$ 2,563.0
$ 2,349.9
$ 685.4
$ 645.5
$ 2,995.4
COGS as a % of revenues
69.1%
65.6%
60.7%
60.4%
64.4%
COGS were 69.1% of revenues for the thirty-nine weeks ended August 2, 2014 (Successor) compared to 65.6% in the corresponding period of the
prior year. The increase in COGS of 3.5% of revenues was due to the impact of purchase accounting adjustments of $129.6 million to increase the carrying
value of acquired inventories and the subsequent sale of the acquired inventories related to the Acquisition.
For the thirteen weeks ended November 2, 2013 (Predecessor), COGS were 60.7% of revenues compared to 60.4% of revenues in the corresponding
period of the prior year. The increase in COGS by 0.3% of revenues was due primarily to:
• decreased product margins of approximately 0.3% of revenues due primarily to higher markdowns. Due to the shift in the calendar resulting
from the inclusion of the 53rd week in our fiscal year 2013, certain markdowns taken in connection with routine promotional events late in
October are including our results of operations for the first quarter of fiscal year 2014 (which ended on November 2, 2013). These promotional
events occurred in the second quarter of fiscal year 2013 (which started on October 28, 2012); and
• higher delivery and processing net costs of approximately 0.3% of revenues due to the free shipping/free returns policy we implemented on
October 1, 2013 for our Neiman Marcus and Bergdorf Goodman brands; partially offset by
• the leveraging of buying and occupancy costs by 0.3% of revenues on higher revenues.
COGS were 69.1% of revenues for the thirty-nine weeks ended August 2, 2014 (Successor) and 60.7% of revenues for the thirteen weeks ended
November 2, 2013 (Predecessor) compared to 64.4% of revenues in fiscal year 2013. The difference in COGS for the foregoing Predecessor and Successor
periods compared to fiscal year 2013 is due primarily to the factors described above as well as seasonal considerations. Our first and third fiscal quarters are
generally characterized by a higher level of full-price sales and margins. For additional information on how seasonality affects our COGS, see "—
Seasonality."
Selling, general and administrative expenses (excluding depreciation). SG&A for the thirty-nine weeks ended August 2, 2014 (Successor) and the
thirteen weeks ended November 2, 2013 (Predecessor) compared to the corresponding periods in fiscal year 2013 were:
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