To: Top Management
From: Darlene Richardson
Subject: Summary of financial performance of Neiman Marcus in the fiscal year 2013 and 2014
This memo is to reflect and offer a relative analysis of the performance of Neiman Marcus in the fiscal year 2013 and 2014. The analysis contains the following statistics of financial performance of Neiman Marcus;
• Employee turnover rate
• Stock Prices
• Any other applicable figures for your organization
For accounting procedures companies and governments use a fiscal year to make and formulate monetary statements. The fiscal year for Neiman Marcus ended August 2, 2014. The fourth quarter of fiscal year 2014 and fiscal year 2014 totals are reported on a 13 week and 52 week basis correspondingly. Nevertheless, incomes on the 53rd week are not entered in any equivalent income computations.
Neiman Marcus broadcasted the conclusion of the purchase of Neiman Marcus by an investor group led by a private investment money that is affiliated with Ares Management I.P. and Canada Pension Plan Investment Board. The statements represent the company’s income prior to the attainment.
Employee Turnover Rate:
Neiman Marcus has 16,500 employees as of the ending fiscal year of 2014 an increase of 5.1% from the previous year for its one year employee growth and a 2% increase in the three year employee growth.
With the help of “PeopleAnswers” Neiman Marcus conducts intensive school field interviewing so as to recruit the most effective and brightest graduates into its international government development program, the backbone of Neiman’s ability to manage the business of fashion. Two times a year, Neiman Marcus travels to twelve schools, devoting many days testing and interviewing prospects.
“PeopleAnswers” has made a significant influence on the hiring process. Hiring cost have been lowered and also thanks to their Behavioral DNA ideal profile matching we have been able to reduce the turnover rate.
Sales, Profits and Expenses:
Neiman Marcus reported for the quarter the total revenue of $1,112,680,000 compared to $1119, 080,000 from the previous year. Operating earnings were $7,170,000 compared to $43,872,000 from the previous year. The reported loss before income taxes were $65,488,000 compared to earnings of $9,682,000 from the previous year. The net loss $42,056,000 compared to earnings of $2,883,000 the previous year. Capital expenditure was $62.4 million compared to $42.9 million the previous year. EBITDA was $96.7 million compared to $96.4 million the previous year. The adjusted EBITDA was $105.8 million compared to $106.8 million the previous year.
The stockholders equity is up from 2013 as seen on the chart above.
The stock is down from November 3rd, which was at 17.12. As of November 14th the stock is listed at 16.57.
Barrett, D. (2009). Leadership Communication, 3rd Edition. [VitalSource Bookshelf version]. Retrieved from http://digitalbookshelf.southuniversity.edu/books/0077435176/id/ch06
Neiman Marcus Group LTD LLC: Private Company Information-Businessweek. Retrieved from http://investing.businessweek.com/research/stocks/private/sanpshot.asp?privcapld
Neiman Marcus Reduces Recruiting Costs and Turnover with PeopleAnswers. Retrieved from http://www.peopleanswers.com/results_caseStudies_detail