NEW YORK (Reuters) – Upscale retailer Neiman Marcus Inc. said yesterday its quarterly loss more than doubled and forecast rough times ahead as the financial crisis on Wall Street hits its customers.

The failure of investment firm Lehman Brothers and the bailout of insurer American International Group, will further pressure high-income customers to buy less, said Burt Tansky, CEO of the retailer, which operates Bergdorf Goodman and Neiman department stores.

"Given the recent announcements from various financial institutions, and the current uncertainty in the market, we are anticipating the months ahead will be difficult," Tansky said.

"Our customers are heavily invested in the markets ... and turmoil in financial markets, and the ensuing instability, negatively affects customers' buying patterns."

Same-store sales dropped 1.4 percent in the fiscal fourth quarter that ended on August 2, indicating that shoppers at privately held Neiman's older stores were spending less freely as they faced higher costs for gasoline and food, and a troubled housing market even before the worst of the financial crisis hit Wall Street in recent weeks.

Neiman began to see customer demand soften last autumn, with the weakness continuing and deepening over the past year, Tansky said.

Neiman said its net loss was $35.6 million in the quarter that ended on August 2, compared to a loss of $15.9 million in the year-earlier quarter.

On an operating basis, the company posted a loss of $6.2 million, compared to a profit of $32.2 million a year ago.