Neiman Marcus is struggling to keep its stores busy amidst a slowdown in apparel spending that started with an unusually cold season.
For a third straight quarter, the luxury fashion retailer reported a decline in sales, which in turn led to an 81 percent drop in profit, Reuters reported. Its net income fell from $19.8 million last year to $3.8 million, whereas its revenue dropped 4.2 percent to $1.17 billion.
The drop in sales come at a time when the retailer is struggling to find its place in an evolving omnichannel ecosystem that is being driven by online sales. The company's sales at stores that have been open for over a year declined by 5 percent in its third quarter that ended April 30.
"The prevailing sentiment across retailing is that the customer has less interest in shopping in stores, whether it be traditional department stores or other luxury specialty stores," said CEO Karen Katz.
While an unstable stock market, economic uncertainty and impending presidential elections hampered domestic spending, a strong dollar contributed to less overall spending by tourists in its stores, Katz explained.
The company is reportedly working with its suppliers to cut back on its stock by canceling orders and returning excess inventory.
Neiman Marcus isn't the only retailer feeling the pinch of a slowing market. Macy's and its affiliate stores, including Nordstrom and Bloomingdale's, also reported slowing same-store sales in Q1 this year.
Other retailers such as Michael Kors and Coach are also cutting back on their promotions.