On Tuesday, Neiman Marcus Group announced its financial results for the second quarter. In the statement, the company also said to explore and evaluate potential strategic alternatives, which might include a sale of the company.
For the second quarter ended January 28, 2017, total revenues decreased 6.1% from $1.49 billion the same period last year to $1.40 billion. The drop in the revenues was due to the additional markdowns cause by the issues in its new merchandising and distribution system.
Comparable sales dropped 6.8% in the second quarter. Adjusted EBITDA also declined from the $183 million the same period last year to $126.8 million this year.
In the statement, the company said that the company is working on exploring and evaluating potential strategic alternatives. The strategic alternatives may include sale of the company or other assets and initiatives to optimize company’s capital structure. The evaluation will be conducted with the help of financial advisors. The timetable for the evaluation has not been set yet and the company will not comment until a specific transaction is approved by the board.
The decision of exploring strategic alternatives was announced two months after the company pulled its IPO, which indicates that the company hopes to reduces costs to deal with the declining sales and go through the hard times faced by department store operators.
After the announcement, Neiman Marcus talked with Hudson’s Bay Co., which is the owner of Saks Fifth Avenue, about a buyout of the upscale retailer. According to Wall Street Journal, the deal would exclude Neiman Marcus’s debt of around $5 billion.