8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


Form 8-K

CURRENT REPORT


Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


Date of Report March 9, 2010
Date of earliest event reported March 9, 2010


Commission file no. 333-133184-12


Neiman Marcus, Inc.
(Exact name of registrant as specified in its charter)

Delaware	20-3509435
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1618 Main Street Dallas, Texas	75201
(Address of principal executive offices)	(Zip code)

Registrant’s telephone number, including area code: (214) 743-7600

Not Applicable(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02.         RESULTS OF OPERATIONS AND FINANCIAL CONDITION

The following information is being furnished, not filed, pursuant to Item 2.02. Accordingly, this information will not be incorporated by reference into any registration statement filed by Neiman Marcus, Inc. under the Securities Act of 1933, as amended, unless specifically identified as being incorporated therein by reference.

On March 9, 2010 Neiman Marcus, Inc. issued a press release announcing its results of operations and financial condition for the fiscal second quarter ended January 30, 2010.  A copy of this press release is attached as Exhibit 99.1.

The press release contains information relating to adjusted operating earnings (loss), EBITDA and adjusted EBITDA after excluding the matters indicated therein. Management has included this information because it believes it more accurately reflects results from core operating activities and is a better base from which to measure the company's future performance.

ITEM 9.01.          FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.

(d)	Exhibits.
	99.1 Press release dated March 9, 2010 announcing financial results for the fiscal second quarter ended January 30, 2010.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

SIGNATURES

		NEIMAN MARCUS, INC.
Date:	March 9, 2010	By:	/s/ T. Dale Stapleton
				T. Dale Stapleton
				Vice President and Controller
				(principal accounting officer
				of the registrant)

EX-99.1

Exhibit 99.1

Neiman Marcus, Inc. Reports Second Quarter Earnings

DALLAS--(BUSINESS WIRE)--March 9, 2010--Neiman Marcus, Inc. today reported financial results for the second quarter of fiscal year 2010. For the 13 weeks ended January 30, 2010, the Company reported total revenues of $1.10 billion compared to $1.08 billion in the prior year. Comparable revenues increased 0.6 percent. Operating earnings for the second quarter of fiscal year 2010 were $67.1 million compared to an operating loss of $592.7 million for the second quarter of fiscal year 2009. The Company’s adjusted operating loss in the second quarter of fiscal year 2009, excluding non-cash impairment charges of $560.1 million, as described below under “Other Items,” was $32.6 million.

The Company reported net earnings of $4.0 million for the 13 weeks ended January 30, 2010 compared to a net loss of $509.2 million in the prior year. The prior year period included non-cash impairment charges of $560.1 million as described below under “Other Items.” EBITDA for the second quarter of fiscal year 2010 was $119.9 million compared to adjusted EBITDA of $24.6 million for the second quarter of fiscal year 2009.

For the 26 weeks ended January 30, 2010, the Company reported total revenues of $1.97 billion compared to $2.07 billion in the prior year. Comparable revenues decreased 6.2 percent. The Company reported operating earnings for the 26 weeks ended January 30, 2010 of $142.0 million compared to an operating loss of $511.1 million for the comparable period a year ago. Adjusted operating earnings for the 26 weeks ended January 31, 2009 were $49.0 million.

The Company reported net earnings of $12.5 million for the 26 weeks ended January 30, 2010 compared to a net loss of $496.3 million in the prior year. The prior year period included non-cash impairment charges of $560.1 million as described below under “Other Items.” EBITDA for the 26 weeks ended January 30, 2010 was $248.8 million compared to adjusted EBITDA of $162.8 million for the 26 weeks ended January 31, 2009.

This release contains information regarding the Company’s adjusted operating earnings (loss), EBITDA and adjusted EBITDA, all of which are non-GAAP financial measures. A reconciliation of these figures to the most directly comparable GAAP figures, together with certain other information, can be found at the end of this release.

Other Items

The Company recorded non-cash impairment charges of $560.1 million in the second quarter of fiscal year 2009 which represents 1) $291.1 million pretax impairment charge related to the writedown to fair value of goodwill, 2) $242.2 million pretax impairment charge related to the writedown to fair value of the net carrying value of tradenames and 3) $26.8 million pretax impairment charge related to the writedown to fair value of the net carrying value of certain long-lived assets.

A live webcast of the conference call on earnings can be accessed through the Investor Information section of the Neiman Marcus, Inc. website at www.neimanmarcusgroup.com on Tuesday, March 9, 2010 beginning at 4:00 p.m. Central Standard Time. Following the live broadcast, interested parties may replay the webcast by accessing this website. To access financial information that will be presented during the call, please visit the Investor Information section of the Neiman Marcus, Inc. website at www.neimanmarcusgroup.com.

From time to time, the Company may make statements that predict or forecast future events or results, depend on future events for their accuracy or otherwise contain "forward-looking information." These statements are made based on management's expectations and beliefs concerning future events and are not guarantees of future performance.

The Company cautions readers that actual results may differ materially as a result of various factors, some of which are beyond its control, including but not limited to: political or economic conditions; terrorist activities in the United States and elsewhere; disruptions in business at the Company’s stores, distribution centers or offices; changes in consumer confidence resulting in a reduction of discretionary spending on goods; changes in demographic or retail environments; changes in consumer preferences or fashion trends; competitive responses to the Company’s marketing, merchandising and promotional efforts; changes in the Company’s relationships with key customers; delays in the receipt of merchandise; seasonality of the retail business; adverse weather conditions, particularly during peak selling seasons; delays in anticipated store openings or renovations; natural disasters; significant increases in paper, printing and postage costs; litigation that may have an adverse effect on the Company’s financial results or reputation; changes in the Company’s relationships with designers, vendors and other sources of merchandise; the Company’s success in enforcing its intellectual property rights; the effects of incurring a substantial amount of indebtedness under the Company’s senior secured credit facilities, senior notes and senior subordinated notes and of complying with the related covenants and conditions; the financial viability of the Company’s designers, vendors and other sources of merchandise; the design and implementation of new information systems or enhancement of existing systems; changes in foreign currency exchange rates or inflation rates; impact of funding requirements related to the Company’s noncontributory defined benefit pension plan; changes in the Company’s relationships with certain of key sales associates; changes in key management personnel; changes in the Company’s proprietary credit card arrangement that adversely impact its ability to provide consumer credit; or changes in government or regulatory requirements increasing the Company’s cost of operations.

These and other factors that may adversely effect the Company’s future performance or financial condition are contained in its Annual Report in Form 10-K and other reports filed with and available from the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information or future circumstances.

NEIMAN MARCUS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands)	January 30, 2010		January 31, 2009
ASSETS
Current assets:
Cash and cash equivalents	$	500,661	$	223,184
Merchandise inventories		732,289		840,331
Other current assets		96,750		169,983
Total current assets		1,329,700		1,233,498
Property and equipment, net		947,371		1,031,285
Goodwill and intangible assets, net		3,242,317		3,473,205
Other assets		80,463		71,062
Total assets	$	5,599,851	$	5,809,050
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	190,049	$	195,629
Accrued liabilities		370,275		365,409
Other current liabilities		45,479		-
Total current liabilities		605,803		561,038
Long-term liabilities:
Long-term debt		2,972,222		2,946,199
Deferred income taxes		684,185		750,027
Other long-term liabilities		394,780		458,207
Total long-term liabilities		4,051,187		4,154,433
Total shareholders’ equity		942,861		1,093,579
Total liabilities and shareholders’ equity	$	5,599,851	$	5,809,050

NEIMAN MARCUS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
	Thirteen Weeks Ended						Twenty-Six Weeks Ended
(in thousands)	January 30, 2010			January 31, 2009			January 30, 2010			January 31, 2009
Revenues	$	1,102,361		$	1,079,379		$	1,971,261		$	2,065,166
Cost of goods sold including buying and occupancy costs		761,485			821,403			1,295,709			1,439,146
Selling, general and administrative expenses		237,581			243,580			456,397			486,408
Income from credit card program, net		(16,572	)		(10,187	)		(29,659	)		(23,187	)
Depreciation expense		34,422			39,112			70,205			77,711
Amortization of intangible assets		13,845			13,568			27,691			27,135
Amortization of favorable lease commitments		4,469			4,469			8,939			8,939
Impairment charges		-			560,159			-			560,159
Operating earnings (loss)		67,131			(592,725	)		141,979			(511,145	)
Interest expense, net		59,004			58,581			118,369			116,426
Earnings (loss) before income taxes		8,127			(651,306	)		23,610			(627,571	)
Income tax expense (benefit)		4,163			(142,050	)		11,125			(131,193	)
Net earnings (loss)	$	3,964		$	(509,256	)	$	12,485		$	(496,378	)

NEIMAN MARCUS, INC.
OTHER OPERATING DATA
(UNAUDITED)
SEGMENTS:	Thirteen Weeks Ended						Twenty-Six Weeks Ended
(dollars in millions)	January 30, 2010			January 31, 2009			January 30, 2010			January 31, 2009
REVENUES:
Specialty Retail Stores	$	881.2		$	870.6		$	1,602.8		$	1,697.7
Direct Marketing		221.2			208.8			368.5			367.5
Total	$	1,102.4		$	1,079.4		$	1,971.3		$	2,065.2
OPERATING EARNINGS (LOSS):
Specialty Retail Stores	$	66.5		$	(9.6	)	$	154.9		$	84.8
Direct Marketing		40.7			17.3			62.4			36.7
Corporate expenses		(15.4	)		(13.3	)		(29.0	)		(26.9	)
Other expenses		(6.4	)		(9.0	)		(9.7	)		(9.5	)
Amortization of intangible assets and favorable lease commitments		(18.3	)		(18.0	)		(36.6	)		(36.1	)
ADJUSTED OPERATING EARNINGS (LOSS)	$	67.1		$	(32.6	)	$	142.0		$	49.0
Impairment charges		-			(560.1	)		-			(560.1	)
OPERATING EARNINGS (LOSS)	$	67.1		$	(592.7	)	$	142.0		$	(511.1	)

Adjusted operating earnings (loss) represents operating earnings (loss) excluding impairment charges.

Neiman Marcus, Inc. believes reporting adjusted operating earnings (loss) is a more meaningful representation of the Company’s on-going economic performance and therefore uses adjusted reporting internally to evaluate and manage the Company’s operations. Neiman Marcus, Inc. has chosen to provide this information to investors to enable them to perform more meaningful comparisons of operating results and as a means to emphasize the results of on-going operations. Adjusted operating earnings (loss) is not a recognized term under generally accepted accounting principles (GAAP). Adjusted operating earnings (loss) should not be considered as an alternative to operating earnings (loss) or net earnings (loss) as a measure of operating performance or cash flows as a measure of liquidity. Adjusted operating earnings (loss) should not be considered in isolation to, or as a substitute for, analysis of the Company’s results reported in accordance with generally accepted accounting principles. Adjusted operating earnings (loss) as presented herein are not necessarily comparable to similarly titled measures.

NEIMAN MARCUS, INC.
OTHER OPERATING DATA
(UNAUDITED)
OTHER DATA:
	Thirteen Weeks Ended					Twenty-Six Weeks Ended
(dollars in millions)	January 30, 2010		January 31, 2009			January 30, 2010		January 31, 2009
Capital expenditures	$	11.1	$	31.1		$	28.4	$	64.5
Depreciation	$	34.4	$	39.1		$	70.2	$	77.7
Amortization of intangibles	$	18.3	$	18.0		$	36.6	$	36.1
Rent expense	$	22.4	$	22.4		$	43.4	$	44.5
EBITDA	$	119.9	$	(535.5	)	$	248.8	$	(397.3	)
Adjusted EBITDA	$	119.9	$	24.6		$	248.8	$	162.8

For an explanation of EBITDA and Adjusted EBITDA, see “Non-GAAP Financial Measure.”

NEIMAN MARCUS, INC.
NON-GAAP FINANCIAL MEASURE
(UNAUDITED)
The following table reconciles net earnings (loss) as reflected in the Company’s condensed consolidated statements of operations prepared in accordance with GAAP to EBITDA and Adjusted EBITDA:
	Thirteen Weeks Ended					Twenty-Six Weeks Ended
(dollars in millions)	January 30, 2010		January 31, 2009			January 30, 2010		January 31, 2009
Net earnings (loss)	$	4.0	$	(509.2	)	$	12.5	$	(496.3	)
Income tax expense (benefit)		4.2		(142.0	)		11.1		(131.2	)
Interest expense, net		59.0		58.6			118.4		116.4
Depreciation expense		34.4		39.1			70.2		77.7
Amortization of intangible assets and favorable lease commitments		18.3		18.0			36.6		36.1
EBITDA		119.9		(535.5	)		248.8		(397.3	)
Non-cash impairment of long-lived assets		-		560.1			-		560.1
Adjusted EBITDA	$	119.9	$	24.6		$	248.8	$	162.8

We present the non-GAAP financial measures EBITDA and Adjusted EBITDA because we use these measures to monitor and evaluate the performance of our business and believe the presentation of these measures will enhance investors’ ability to analyze trends in our business, evaluate our performance relative to other companies in our industry and evaluate our ability to service our debt. In addition, we use EBITDA and Adjusted EBITDA as components of the measurement of incentive compensation.

EBITDA and Adjusted EBITDA are not presentations made in accordance with GAAP and this computation may vary from others in the industry. In addition, EBITDA and Adjusted EBITDA contain some, but not all, adjustments that are taken into account in the calculation of the components of various covenants in the agreements and indentures governing the Company’s senior secured Asset-Based Revolving Credit Facility, Senior Secured Term Loan Facility, Senior Notes and Senior Subordinated Notes. EBITDA and Adjusted EBITDA should not be considered as alternatives to operating earnings (loss) or net earnings (loss) as measures of operating performance or cash flows as measures of liquidity. EBITDA and Adjusted EBITDA have important limitations as analytical tools and should not be considered in isolation to, or as a substitute for, analysis of the Company’s results as reported under GAAP. For example, EBITDA and Adjusted EBITDA do not reflect cash expenditures, or future requirements, for capital expenditures or contractual commitments; do not reflect changes in, or cash requirements, for working capital needs; do not reflect our considerable interest expense, or the cash requirements necessary to service interest or principal payments, on the Company’s debt; exclude tax payments that represent a reduction in cash available; and do not reflect any cash requirements for assets being depreciated and amortized that may have to be replaced in the future.

CONTACT:
Neiman Marcus, Inc.
James E. Skinner, 214-757-2954
Executive Vice President and
Chief Financial Officer
or
Stacie Shirley, 214-757-2967
Vice President – Finance
and Treasurer