The Neiman Marcus Group (NMG) filed a prospectus with the Securities and Exchange Commission yesterday for an initial public offering that would raise $100 million, with that figure serving as more of a placeholder that will most likely be amended in the future. The filing comes just 2 years after a separate filing for Neiman Marcus, though that deal never materialized.
Many details of the offering including the underwriters for the deal, the number of shares to be offered, and which market the firm will list under are not contained in the prospectus and are still unknown. The ticker under which the firm will list under though has been picked, and will be NMG. Also, profits for the deal will go towards the repayment of debt, in addition to being used for other corporate purposes.
Based in Dallas, Texas and founded over 100 years ago in 1907, the Neiman Marcus Group operates the Neiman Marcus and Bergdorf Goodman brands, as well as the luxury online shopping site MyTheresa. There are currently 41 Neiman Marcus locations, 2 Bergdorf Goodman stores, and 42 “Last Call” off-price stores. The firm is currently owned by the Ares Management Group and the Canada Pension Plan Investment Board, who came together to buy the firm back in 2005 for $6 billion.
The firm reported revenue of $4.8 billion for 2014, with approximately 24% of that figure coming from online transactions. The Neiman Marcus Group also said that through the end of its fiscal third quarter, it has posted 22 straight quarters of positive quarterly comparable sales growth, at an average of more than 6%.
The firm plans to further growth through investing in technology including its website, identifying and partnering with new designers, and expanding its international footprint. Neiman Marcus also plans to remodel 23 of its 43 full-price stores, and will scout opportunities to open additional stores in the U.S., including 2 locations coming to New York.
With 38% of their clientele having median household incomes of $200,000, its clear Neiman Marcus caters to a wealthier crowd and one would think that the size of its customer base would be limited. With 22 straight quarters of increased comparable sales growth and profits increasing with its revenue growth, it's clear the Neiman Group-owned retailers have found a recipe for success, and with plans for continued growth and success, its IPO could create a great deal of buzz from investors, and the firm's stock could potentially be an intriguing investment opportunity in the future.
When exactly the firm launches its offering, and how the market reacts to it, will be something to watch for in the coming months. Be sure to check back for updates on this offering as more details surface from Neiman Marcus.
