Alive and Well With a $100 Million IPO
Five years after being taken private by a private equity firm for $5.1 billion dollars, Dallas-based luxury retailer Neiman Marcus is on the verge of going public again. The recent IPO registration does not necessarily mean that the company will go public, but it is a good indication that Neiman Marcus is doing well and wants to keep its options open.
During the 2008-2009 financial crisis, the sale of luxury goods plummeted in the United States. Neiman Marcus, like most luxury retailers, suffered during the recession, but conditions have definitely improved. Projections indicate that at the end of the current fiscal year, Neiman Marcus sales will have recovered to pre-recession levels.
Neiman Marcus was the first high-end retailer to start selling online and currently attributes over 20 percent of total sales to their ongoing e-commerce efforts. This is better than high-end competitors Saks and Nordstrom, and bodes well for future growth. Neiman Marcus also derives over 11 percent of its revenues from the sale of fine jewelry and luxury watches. This means the watch industry will be watching the new IPO closely.
Will Neiman Marcus Really Go Public?
The initial prospectus, filed on Monday, June 24, did not set a timeline for taking the company public again. It is still unclear how many shares would be sold and on which exchange Neiman Marcus shares would trade. In fact, filing for an IPO doesn’t require the company to go public at all. Many industry watchers think that the recent Neiman Marcus IPO registration is only a placeholder for a much larger future sale.
It is no secret that private equity owners TPG Capital, Warburg Pincus and Leonard Green & Partners, are investigating a sale of the company. Most private equity funds have a lifespan of ten years or less and many in the financial world already consider Neiman Marcus a mature investment. The unanswered question is what this successful upscale retailer will do next.
If and when Neiman Marcus goes public, it is a good indication that the market for luxury goods has regained its health and high-end retailers like Neiman Marcus are here to stay.
About Gevril Group
Gevril Group is the exclusive US representative for select European watch brands, distributing and servicing luxury, fashion and sports timepieces at a wide range of price points. Gevril Group also operates a full-service watch repair department staffed by master Swiss watchmakers. Contact Gevril Group by email or by calling 845-425-9882.
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