Neiman Marcus Says Goodbye to Private Ownership and Hello to IPO

After 10 years of private ownership, luxury retailer Neiman Marcus has announced its return to public stock markets. The news was released on Tuesday (Aug. 4) according to Forbes.

The high-end retailer filed for a $100 million IPO, which serves as a placeholder for the amount that the company is hoping to raise.

In 2005, Neiman Marcus — which includes not only its namesake brand, but also its subsidiary Bergdorf Goodman — was acquired for $5.1 billion by private equity firms Texas Pacific Group and Warburg Pincus. Eight years later, it was sold again for $6 billion to Ares Capital and the Canadian Pension Plan Investment Board. And now, the luxury retailer is going public.

Neiman Marcus declared a $3.9 billion revenue and a 4.5 percent increase in comparable store sales for its 39-week period that ended May 2, along with a $47.8 million profit and $543.9 million in EBITDA. Compared to the results of the previous year, the retailer is experiencing a $134.1 million loss.

The company owns 41 Neiman Marcus stores and two Bergdorf Goodman stores in the U.S., as well as Munich-based My Theresa, a luxury fashion brand that operates in Europe, Asia and the Middle East.

In the fiscal year of 2014, 24 percent of sales came from Neiman Marcus and Bergdorf Goodman online channels.

With the IPO capital, Neiman Marcus plans to remodel 53 percent of its stores, particularly those located in California, Massachusetts and Texas, as well as the Bergdorf Goodman locations. The company is also planning to remodel 7 percent of its 850 designer shops and to increase their number by 20 percent.

Part of the capital will be used to continue investing in IT infrastructure and security, especially after the 2013 data breach that left more than 350,000 customers exposed to fraud.

Some of the proceeds will go toward paying part of the company’s $7.4 billion debt, while another part of the capital will be used for general corporate purposes.

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