It was a bittersweet fiscal fourth quarter and full year for high-end department store chain Neiman Marcus Group Ltd. LLC, as gains in online and store sales were offset by increased costs related to its data breach that it revealed in January 2014, the merchant reported this week.

In its fiscal year-end conference call with analysts, president and CEO Karen Katz also disclosed more details about the acquisition of German e-commerce player MyTheresa.com it announced last week. Neiman Marcus will pay around 150 euros ($192.4 million) for the global online luxury web site and its flagship store in Munich.

MyTheresa.com drives $130 million in total revenue annually, ships to 120 countries and does particularly well with young, affluent customers, Katz says. This acquisition, she says, will complement Neiman Marcus’ existing business targeted at the high-end shopper.

“With the acquisition of MyTheresa.com, we take another important and strategically significant step toward our goal of being the leading global luxury e-commerce player with three of the most prestigious brands, Neiman Marcus, Bergdorf Goodman and MyTheresa.com,” Katz told analysts.

MyTheresa.com will operate as a wholly owned subsidiary based in Munich, and the management team will remain in place, Neiman Marcus says. The deal is expected to close later this year.

For the fiscal year ended August 2, 2014, Neiman Marcus, ranked No. 41 in the Internet Retailer Top 500 Guide, reported:

• Online sales of $1.15 billion, a 11.7% increase compared with $1.03 billion in fiscal 2013.
• Total sales of $4.84 billion, up 4.1% from $4.65 billion.
• Comparable-store sales increased 5.5%.
• A net loss of $147.2 million compared with net income of $163.7 million in fiscal 2013.

Neiman Marcus partially attributed the losses to increased expenses related toa data breach that exposed to hackers debit and credit card numbers customers used in stores from July through October 2013. Those expenses include legal fees and the cost of credit monitoring services it’s giving to affected consumers.

Online sales accounted for around 23.8% of total sales for the year, compared with 22.2% in fiscal 2013. E-commerce represented 63.2% of the retailer’s sales growth for the year.

For the fourth quarter, Neiman Marcus also reported:

• E-commerce sales of $275.6 million, up 7.3% from $256.8 million in the fourth quarter of the prior year.
• Total sales of $1.113 billion, a 0.5% decline compared with $1.119 billion.
• Comparable-store sales increased 4.9%.
• A net loss of $42.1 million, compared with a net income of $2.9 million during the same period last year.

In fiscal 2015, Neiman Marcus plans to continue investing in omnichannel initiatives that tie stores to its web channel. The merchant launched buy online, ship to store capabilities in January, buy online and pick up in store in July, and in recent weeks began testing same-day delivery in three metropolitan markets.

The 7,000 iPhones and iPads given to sales associates in stores have become “indispensable selling tools,” Katz told analysts, and the merchant will roll out “the next generation of iPads” soon, though she didn’t elaborate. Currently, clerks are using the devices to video chat with potential customers via Apple’s Facetime technology and send wardrobe suggestions and trend updates.

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