Neiman Marcus has changed its mind regarding its previous decision to roll out an initial public offering (IPO).
The luxury retailer had originally planned to go public this year after filing for an IPO in August 2015, but now the company will be reversing this decision. Neiman Marcus issued a statement, saying it is not in the company’s best interest to go public at this time.
In October of 2015, the company delayed its plans until 2016 because of “market jitters.” Perhaps it is because of this same reason that the retailer is once again postponing going public.
It has been a rough holiday period for Neiman Marcus as wealthy shoppers are following a trend where they compare prices between stores everywhere they go, splitting the company’s business with other luxury retailers.
CEO Karen Katz admitted that the company’s core customer base has not been visiting the company as frequently as before. Neiman Marcus has now had five straight quarters of declining sales at stores that have been open for at least a year.
Its total sales suffered a revenue dip from $1.16 billion a year ago to $1.08 billion in its most recent quarterly results. Net losses were wider at $23.5 million, compared to $10.5 million the previous year.
Neiman Marcus requested that all fees paid to the Securities and Exchange Commission be credited for when the company actually launches its IPO.