Around nine months after it exited Chapter 11, Neiman Marcus Group has acquired Stylyze, software that provides personalized fashion recommendations and photos to shoppers.
Terms of the deal were not disclosed. The transaction is scheduled to close at the end of the first quarter of fiscal year 2022.
Acquiring Stylyze—which has worked with Neiman Marcus since 2018—is part of a planned series of investments the retailer plans to make in its digital capabilities. Those investments will likely total $500 million over the next three years, the company said, and could include further acquisitions and partnerships.
“By acquiring Stylyze, we will be able to advance our strategy of integrated luxury, building long-term relationships with our luxury customers that create emotional value and high lifetime value potential,” said CEO Geoffroy van Raemdonck in a statement. “This allows us to deepen our relationship with our customers through the use of technology.”
Post-acquisition, Stylyze will only work with Neiman Marcus, a company spokesperson said.
Neiman Marcus has been able to make these investments, the company said in the same statement, because of its improved liquidity post-bankruptcy. At the end of April, the company had a total outstanding debt of $1.1 billion, as opposed to $5.1 billion the prior year. It has available liquidity of over $850 million, versus $132 million a year ago, and has no borrowings outstanding on its $900 million revolver.
The retailer’s March and April comps were relatively flat compared to the same months in pre-pandemic fiscal 2019—lower than some other companies have reported. However, its sales have been “generally ahead of plan,” according to the same statement, “and showed signs that the business has begun to return to pre-pandemic levels.”
Like other retailers, Neiman Marcus has seen a strong growth in e-commerce, which now accounts for 35% of its revenue.
“We knew the rebound was coming, and we’ve been experiencing the return of luxury as it accelerates,” said van Raemdonck in the same statement.
Top: A Neiman Marcus store in Fort Worth, Texas (photo courtesy of Neiman Marcus)
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