As for the direct-marketing operation, the company plans more designer boutiques on its Web site. Referred to as sitelets, the company already operates two, Ferragamo and David Yurman. The purpose of increasing the sitelets is to provide advertising for both Neiman Marcus and its vendor partners, Tansky said.
Tansky didn’t say much about the company’s smaller-brand segments. Laura Mercier has “improved this quarter,” while Kate Spade is focused on expanding the brand through new licensing opportunities, he explained. The Kate Spade operation had distribution issues in the quarter, which negatively impacted quarterly results, Tansky told analysts, but added that management at Kate Spade believed they’ve resolved the issues. He added that so far there’s been “positive response to spring merchandise.”
“We are off to a great start,” said Tansky, who one flattering analyst noted on the call should be called “Mr. Luxury.”