Neiman Marcus Group Inc Files for IPO with US Regulators
Neiman Marcus Group Inc has recently files for an initial public offering (IPO) with US regulators on Tuesday. This is the second time when the US luxury fashion retailer has revealed its plans of going public.
Backed by Canadian Pension Plan Investment Board (CPPIB) and Ares Management LP, the 100-year-old-retailer is famous for selling apparel, handbags, shoes, cosmetics and designer jewelry.
The luxury retailer operates nearly 41 department stores including the famed Bergdorf Goodman store on Manhattan's Fifth Avenue and the Last Call off-price chain.
It has been said that the Dallas-based Neiman Marcus's previous owners, TPG Capital and Warburg Pincus first planned to make the company public in July 2013. They later decided to sell the company to CPPIB and Ares Management for $6 billion.
Company's latest plans to file for initial public offering has come as the growth in the North America luxury market is expected to outpace global overseas.
According to Euromonitor International, the North American luxury market is expected to grow 4.1 % a year compared with the 3.6 % rate expected for the global market.
It has been found that shares of Jimmy Choo, the famous luxury shoe retailer, have gained 17.5 % since it debuted on the London Stock Exchange in the previous year.
Neiman Marcus usually sells its products under the brands such as Neiman Marcus, Bergdorf Goodman and MyTheresa. And as per records about 38% of its customers have a median household income of over $200,000, the company said in a filing.
The company which is also known for selling merchandise designed by fashion houses such as Chanel, Gucci, Prada and Louis Vuitton, gets about 40 % of its revenue from its 'InCircle loyalty program' members, who spend nearly 11 times more than other customers.