American department store chain Neiman Marcus to acquire Stylyze

The acquisition transaction is expected to close in the first quarter of fiscal 2022, subject to customary closing conditions.

Acquiring Stylyze will strengthen Neiman Marcus Group's (NMG) ability to build a differentiated luxury experience and is intended to be part of an over half-billion dollars in planned gross investment over the next three years to support the company's integrated luxury retail strategy, the company said in a press release.

NMG has already implemented technology from over 25 companies and will continue to explore opportunities to further its integrated luxury retail focus through acquisitions, partnerships and building out digital capabilities internally.

The company can make strategic investments because of its renewed financial flexibility. The company had, at the end of April, total outstanding debt of $1.1 billion vs. $5.1 billion the prior year. NMG currently has available liquidity of over $850 million vs. $132 million a year ago and has no borrowings outstanding on a $900 million revolver.

During NMG's fiscal third quarter (February-April), March and April comparable sales were relatively flat to FY2019 (pre-pandemic). Results during the quarter were generally ahead of plan and showed signs that the business has begun to return to pre-pandemic levels with a strong e-commerce business, accounting for approximately 35 per cent of revenue.

"We could not be more thrilled for the opportunity to join forces with such an esteemed industry leader that brings together the best customers, brands, and selling channels," said Kristen Miller, CEO and co-founder of Stylyze. "Our company and team have been working with NMG for over three years, and we are ready to rapidly power, accelerate, and elevate unique and distinct digitally-enabled service models."

NMG began its strategic partnership with Stylyze in 2018. While Stylyze's technology currently supports NMG's remote-selling platform and digital selling, the company plans to integrate its functionality into digital tools like e-commerce, mobile apps, messaging channels like text message, chat and phone calls and other engagement channels.

Fibre2Fashion News Desk (KD)