What is Neiman Marcus’ stock price, and are they publicly traded? Unfortunately, investors cannot purchase shares of Neiman Marcus because it is a private company. However, Nordstrom (NYSE: JWN), Dillards (NYSE: DDS), and Simon Property Group (NYSE: SPG) are luxury brand stocks that traders can invest in.
If you’re into high fashion and luxury brands, you’ve probably shopped at a Neiman Marcus. Neiman Marcus is one of the foundational retail brands in America and one of the most prestigious department stores in the world. They say that luxury brands never go out of fashion.
Most luxury goods are investments that will appreciate over time. But what about investing in the stores that sell them? This article will discuss investing in high fashion, buying Neiman Marcus stock, and other retail stocks to consider.
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Neiman Marcus Introduction (No Stock Symbol)
Neiman Marcus is an American department store chain founded in 1907 in Dallas, Texas. Entrepreneurs Herbert Marcus, his sister Carrie Marcus Neiman, and her husband Abraham Lincoln Neiman started the company. The trio had amassed enough to invest to go into business themselves.
Before Neiman Marcus started, the group turned down an investment opportunity in a sugary soda business. Unfortunately for them, this company turned out to be Coca-Cola. They never went public with Neiman Marcus stock, either.
The store opened to great success in Dallas. The furnishing and product selection was for New York, which was uncharacteristic of Texas at the time, despite much of Texas oil money. Neiman Marcus sold out of their initial inventory within weeks of opening its doors.
Neiman Marcus found success in the first few years and was profitable from the start. In 1914, the original location burned down in a massive fire. The fire destroyed its existing merchandise and forced the store to close its doors. However, they opened a temporary space while they built a new Neiman Marcus.
The company has remained an exclusive entity with just 50 locations at its peak. As of July 2024, Neiman Marcus is down to 36 locations, all of which are in the United States.
Can I Buy Neiman Marcus Stock?
With such an exclusive market share of luxury retail, Neiman Marcus would make for a great investment. Unfortunately, in 2024, you cannot buy Neiman Marcus stock as it is a privately owned company.
Several times throughout its history, Neiman Marcus has planned to list publicly via an IPO. Most recently, the company was considering an IPO in both 2013 and 2015 but never followed through.
Neiman Marcus was always acquired at the last minute, usually by a private equity group. The past twenty years have been complicated for Neiman Marcus as ownership has changed multiple times.
Who Owns Neiman Marcus?
As of July 2024, Neiman Marcus is owned by the Neiman Marcus Group. This is a retail conglomerate that owns several department stores. These include Neiman Marcus, Bergdorf Goodman, and Neiman Marcus Last Call. The company filed for Chapter 11 bankruptcy in May 2020 and was rescued by several private equity firms, including Sixth Street Partners and Pacific Investment Management.
On July 4, 2024, Toronto-based retail giant the Hudson’s Bay Company announced its intention to acquire Neiman Marcus for $2.65 billion. Hudson’s Bay already owns the US-based Saks Fifth Avenue department store brand. The acquisition is still pending and expected to go through at some point this year. Could they have a Neiman Marcus stock?
Neiman Marcus Stock Competitors
Investing in retail companies and department stores is nothing new. Unless you make your clothes, you probably buy them at a store or from a retail website. Chances are, you’ve been to many of the stores on this list, so it might be time to consider investing in them.
Even though Neiman Marcus stock doesn’t trade, all these retail brands do. Here is our list of the best companies to invest in for luxury retail and department stores in 2024!
1. Nordstrom (NYSE: JWN)
If you shop at Neiman Marcus, chances are you have also shopped at Nordstrom. Nordstrom is an American department store chain founded in 1901 in Seattle, Washington. As of July 2024, there are 365 Nordstrom stores, including its discount Nordstrom Rack brand.
All of these stores are in the United States after the company had failed expansions into Canada and Puerto Rico. It’s a great Neiman Marcus stock alternative.
As an investment, Nordstrom has underperformed in the market, with a loss of about 20% over the past five years. While the stock pays a quarterly dividend with a yield of 3.19%, it hasn’t been the best place to park your money.
The Nordstrom family has tried on multiple occasions to take the company private. The most recent bid came in May 2024 by a private equity firm, Sycamore.
2. Dillard’s (NYSE: DDS)
Another Neiman Marcus stock alternative is Dillard’s. Dillard’s is an American department store chain founded in 1938 in Little Rock, Arkansas. The company has a majority of its 273 locations in Texas and Florida.
Geographically, Dillard’s stores are primarily in the southern half of the United States, with just three stores in California. Dillard’s does not offer the same merchandise as Neiman Marcus and is focused more on lower-cost products.
The five-year performance of Dillard’s stock might surprise you. Shares have returned a staggering 420% to shareholders since July 2019. The stock is a component of the Russell 1000 index and pays a dividend yield of 0.24%. With a market cap of $6.7 billion, Dillard’s is worth double that of Nordstrom.
3. Macy’s (NYSE: M)
Macy’s is an American holding company that owns department stores and retail brands. Started in 1925 in Columbus, Ohio, it went public in 1992 under its previous name, Federated Stores, Inc. Macy’s is one of the most well-known department stores in America and was one of the companies behind the creation of the Black Friday shopping event.
More than 700 stores are under the Macy’s umbrella, including Bloomingdale’s and several other outlet-style stores.
Macy’s declaration of bankruptcy and financial struggles in recent years are well documented. The company announced in February 2024 that it will be closing at least 150 of its stores by 2026.
As can be expected, the stock has struggled. Shares have returned a loss of 24% over the past five years. Despite its financial troubles, Macy’s has maintained its quarterly dividend with a yield of 4.13%. As a result, it’s a good Neriman Marches stock alternative.
4. Simon Property Group (NYSE: SPG)
Rather than choosing a single department store, why not invest in the whole mall? As a result, buying shares of Simon Property Group provides you with this. This company is a Real Estate Investment Trust or REIT that owns 230 properties worldwide.
Some brands you might recognize include Premium Outlet Malls and The Mills. Simon owns brands like Forever 21, JC Penny, Eddie Bauer, and Brooks Brothers.
As a result, this might be the strongest stock on our list. Dividend investors have always loved Simon Property Group because of its generous distributions.
SPG pays out a dividend yield of 5.16% quarterly to shareholders. The stock has been flat over the past five years, but attribute much of that to the closure of malls during the pandemic. However, it’s still a good Neiman Marcus stock alternative.
5. Burlington Stores (NYSE: BURL)
$BURL might be a surprise Neiman Marcus stock alternative. You probably know this company by its former name: Burlington Coat Factory. This off-price discount department store started in 1972 in Burlington, New Jersey. Burlington Stores has more than 1,000 stores in the United States, most of which are at strip malls or outlet malls.
Over the past five years, Burlington stock has provided shareholders with a return of about 37%. It has outperformed higher-end department stores like Macy’s and Nordstrom.
The stock is a component of the S&P 400 Midcap index. Unlike most other companies on this list, Burlington stock does not pay dividends to shareholders.
International Luxury Stocks to Invest in
If you’re like me, investing in luxury brands is the closest thing you’ll ever get to owning them. Although many are publicly traded companies, very few are available to American investors.
Most of them trade on European exchanges like France or Euronext. Some are available to Americans via the OTC markets, which you can buy as ADRs or American Depository Receipts. Here is a list of some of the best luxury brands or Neiman Marcus stock alternatives you can buy on the OTC markets or in Europe.
- LVMH Moet Hennessy Louis Vuitton SE (EPA: MC)
- Hermes International SCA (EPA: RMS)
- Christian Dior SE (EPA: CDI)
- Burberry Group plc (LON: BRBY)
- Kering SA (EPA: KER)
Final Thoughts: Neiman Marcus Stock
It’s hard to say if investing in luxury retail is good. Companies similar to Neiman Marcus, like Macy’s and Nordstrom, have underperformed in the market. Even if you could buy Neiman Marcus stock, there is no guarantee that it would have provided you with any returns.
Luxury fashion and department stores have struggled since the pandemic. Stores and malls were closed for months. Meanwhile, higher interest rates and sky-high inflation have impacted consumer sentiment and buying power. Until the economy stabilizes, it likely won’t be a great time to invest in luxury brands or department store stocks.
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Frequently Asked Questions
No, Neiman Marcus is not a public company. It is privately owned by the Neiman Marcus Group and has never publicly traded in its 116-year existence.
As of July 2024, Canada's Hudson's Bay Company owns the Neiman Marcus Group. Although the deal has not officially gone through, Hudson's Bay Company is acquiring the Neiman Marcus Group for $2.65 billion.
Yes, Neiman Marcus Group still owns Bergdorf Goodman. Both brands will still exist even when the Hudson's Bay Company acquired the company in 2024.
Neiman Marcus' name comes from the trio of co-founders: Herbert Marcus Sr., his sister Carrie Marcus Neiman, and her husband Abraham Lincoln Neiman. Herbert's son, Stanley Marcus, was President and Chairman of the Board of Neiman Marcus from 1950 to 1976.
As of July 2024, only 36 Neiman Marcus stores remain in the United States. There are also two Bergdorf Goodman stores and five Neiman Marcus Last Call stores. It is unknown if the Hudson's Bay Company will look to establish new locations once they've completed the acquisition.
