Neiman Marcus Says Earnings Down 15%

Neiman Marcus Group Inc. said its fiscal third-quarter earnings fell 15% to $38.2 million, or 80 cents a share, as corporate layoffs and stock market losses discouraged customers from splurging.

The company had warned early last month of weak profit, prompting analysts to lower their forecasts from $1.03 a share to 81 cents. Sales edged down 0.3% to $682 million.

Sales at stores open at least a year fell 1.4%. Sluggish demand led the retailer to reduce prices, which limited the profit made on each sale.

Neiman said it will take steeper price markdowns to clear out goods in the fourth quarter, when same-store sales are expected to rise 3% to 4%.

Neiman shares fell $1.88 to close at $36.87 on the NYSE.