Luxury retailer Neiman Marcus Group moved to a net loss in its second quarter as costs related to a data breach hit earnings.
The company, which was acquired by an investor group led by Ares Management and Canada Pension Plan Investment Board in October last year, reported a net loss of $67.9 million in the three months to February 1. This compared to earnings of $40.4 million a year earlier.
Neiman Marcus said it incurred expenses associated with the sale of the company in the quarter, in addition to costs related to its data breach and free shipping and returns. To date, the breach is understood to have cost the retailer around $4.1 million.
Sales in the period, however, climbed 5.1% to $1.43 billion from $1.36 billion in the prior year period. Comparable revenues increased 5.5%.
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