Neiman Marcus 2008 Annual Report Download - page 28

Table of Contents
Recent Developments
On September 3, 2009, we announced preliminary total revenues and comparable revenues of approximately $241.0 million
and $237.0 million, respectively, for the four-week period ended August 29, 2009. In the four-week August period of fiscal year 2010,
total revenues decreased 15.3% and comparable revenues decreased 16.6% compared to the four-week August period of fiscal year
2009. Comparable revenues decreased 19.6% in our Specialty Retail stores and increased 0.1% in our Direct Marketing operation for
the four-week August period of fiscal year 2010.
On October 8, 2009, we announced preliminary total revenues and comparable revenues of approximately $353.5 million and
$344.2 million, respectively, for the five-week period ended October 3, 2009 and $594.5 million and $581.2 million, respectively, for
the nine-week period ended October 3, 2009. In the five-week September period of fiscal year 2010, total revenues decreased 14.8%
and comparable revenues decreased 16.9% compared to the five-week September period of fiscal year 2009. Comparable revenues
decreased 17.6% in our Specialty Retail stores and 13.6% in our Direct Marketing operation for the five-week September period of
fiscal year 2010. In the nine-week September period of fiscal year 2010, total revenues decreased 15.0% and comparable revenues
decreased 16.8% compared to the nine-week September period of fiscal year 2009. Comparable revenues decreased 18.4% in our
Specialty Retail stores and 8.3% in our Direct Marketing operation for the nine-week September period of fiscal year 2010.
All the financial data set forth above for the five and nine-week periods ending October 3, 2009 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 31, 2009. Once we and our independent registered public
accounting firm have completed our respective reviews of our financial information for the quarter ending October 31, 2009, we may
report financial results that are different from those set forth above.
Factors Affecting Our Results
Revenues. We generate our revenues from the sale of high-end merchandise through our Specialty Retail stores and Direct
Marketing operation. Components of our revenues include:
• Sales of merchandise—Revenues from our Specialty Retail stores are recognized at the later of the point of sale or the
delivery of goods to the customer. Revenues from our Direct Marketing operation are recognized when the merchandise
is delivered to the customer. We maintain reserves for anticipated sales returns primarily based on our historical trends
related to returns by both our retail and direct marketing customers. Revenues exclude sales taxes collected from our
customers.
• Delivery and processing—We generate revenues from delivery and processing charges related to merchandise delivered
to our customers from both our retail and direct marketing operation.
Our revenues can be affected by the following factors:
• general economic conditions, including the recent deterioration of domestic and international capital markets and
general economic conditions and the prospects for a meaningful recovery in the near-term;
• changes in the level of consumer spending generally and, specifically, on luxury goods;
• changes in the level of full-price sales;
• changes in the level of promotional events conducted by our Specialty Retail stores and Direct Marketing operation;
• our ability to successfully implement our store expansion and remodeling strategies; and
• the rate of growth in internet revenues by our Direct Marketing operation.
In addition, our revenues are seasonal. For a description of the seasonality of our business, see "Seasonality."
Cost of goods sold including buying and occupancy costs (excluding depreciation) (COGS). COGS consists of the
following components:
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