Marketing Environment

As the result of our current economy, many stores are struggling and Neiman Marcus is no different. In August 2009, the company reported a loss of nearly 170 millions for its 4Th quarter as consumers continue to cut back on high end purchases and the company itself suffer from a large debt burden. Neiman like many other luxury retailers was struck by the economy downturn forcing the company to cut down on his workforce and reduce inventories severely. Neiman said that it has made progress in restoring its balance sheet and position itself for the current environment. The company ended his fiscal year with 323 millions in cash, up by 84 millions a year ago. Inventory level, a sign of retail management, were down 23% from a year ago. the company also said that it was trying to bring in more value oriented items in order to meet customers needs. I am confident the significant actions we have taken combined with our outstanding customer relationships and the strenght of our marketing initiative, will position us well for the new year, said Burton Tansky, chairman and CEO of Neiman Marcus.