Saks Inc (SKS), Nordstrom, Inc. (JWN): Neiman Marcus Is Ready to Shake Things Up

Other luxury businesses have been happy to turn to men recently in order to expand their businesses. Coach, Inc. (NYSE:COH), for all its shortfalls, has done well with its men’s product lines. Over its last fiscal year, Coach grew its men’s business by almost 50% to $600 million in revenue. That may have distracted management from its core business, but a better plan could have prevented the fall that Coach experienced.

Neiman may have that plan in place. CEO Karen Katz has moved quickly up Neiman’s internal ladder, going from a store manager in 1994 to CEO in 2010. Her insight into what happens on the front lines of the business and the small scale of Neiman’s operation may give the business a leg up in the management of its future growth.

Of course, the real test for investors will be the company’s valuation when it comes to market. Nordstrom, Inc. (NYSE:JWN) is currently valued at 16 times its earnings over the last 12 months, while Saks Inc (NYSE:SKS) sold for more than 45 times its trailing earnings. If Neiman hits the market closer to the Nordstrom mark, investors could be in for a treat.

The article Neiman Marcus Is Ready to Shake Things Up originally appeared on Fool.com.

Fool contributor Andrew Marder has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Coach.

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