Business

So richly rewarding

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Neiman Marcus — the red-hot upscale chain less-wealthy shoppers have long called “Needless Markup” because of its stratospheric prices — is riding the luxury boom.

The Dallas-based retail chain said profit in the three months ended Jan. 29 surged more than fivefold as well-heeled consumers scooped up pricey designer clothing and handbags at its namesake stores and at the Bergdorf Goodman shops it operates on Fifth Avenue.

Analysts say a surging stock market has boosted moods among the super-wealthy, whose spending habits are dictated more by their emotions than fluctuations in their bank accounts, which remain huge even in tough economic times.

After denying themselves for more than a year during the depths of the recession, the upper crust has been splurging ever since on Chanel suits, Hermes neckties and Louis Vuitton handbags with five-digit price tags.

Neiman Marcus is likewise getting a boost as less-wealthy “aspirational” shoppers return to stores with fresh confidence, CEO Karen Katz said.

In its fiscal second quarter, Neiman Marcus’ net income rose to $21 million from $4 million a year earlier. Gross margins widened to 32.3 percent from 30.9 percent of sales, as consumers shelled out more for full-priced clothing and accessories.

Sales rose 6.3 percent.

Business generally has been slower at retailers with more down-to-earth prices, although analysts expect a modest recovery in spending will continue this year.

Ann Taylor — which yesterday changed its corporate name to Ann Inc. — said its fourth-quarter profit rose sharply, to $14 million, from just above break-even a year earlier. The results beat expectations, although comparable sales were up partly because Ann Taylor “has among the easiest compares in the industry” because of poor sales during the past three years, said UBS analyst Roxanne Meyer.

Meanwhile, shares of teen retailer Aeropostale fell 6.4 percent after fourth-quarter results missed Wall Street’s expectations amid rising costs and poor sales.