Dive Brief:

• Luxury department store Neiman Marcus Tuesday reported a 2.3% drop in Q2 revenue to $1.49 billion, compared to $1.52 billion year over year, its first holiday sales decline since the recession. 

• Second quarter same-store sales fell 2.4%, and sales during the holiday period ending Jan. 30 fell 2.1%.

• The drop was the second straight decline and rare for its holiday period, which famously includes an annual over-the-top catalog filled with of uber-expensive gifts. 

Dive Insight:

While Neiman Marcus did better at the holidays than it did the quarter before, its decline is unusual and a sign of tough times in luxury and department stores. Many department stores posted similar lackluster results for the holiday season, including Nordstrom and Macy's, which also announced that it would cut 4,800 jobs after a disappointing Q4. 

Department store retailers have given mostly the same excuses for unfavorable holiday seasons: unseasonably warm weather and a strong dollar. Many parts of the country experienced warmer-than-usual Decembers, causing cold weather inventory to pile up and forcing retailers to discount. The strong dollar has deterred tourists from spending, especially at luxury department stores' flagship stores in cities.

For Neiman Marcus, the roiled stock market also helped dissuade upscale shoppers from buying. And in Texas in particular, where many Neiman Marcus customers live, plunging oil prices hit hard because so many wealthier Texans have interest in oil and gas, in one way or another.