Neiman Marcus Group Becomes First Luxury Retailer to Invest in Pre-Owned Market

Company Announces Exclusive Partnership with Fashionphile as a
Significant Step in Its Transformation Plan

DALLAS–(BUSINESS WIRE)–lt;a href=”https://twitter.com/hashtag/neimanmarcus?src=hash” target=”_blank”gt;#neimanmarcuslt;/agt;–Neiman
Marcus Group
LTD LLC (the “Company”) announced today that it has
agreed to acquire a minority stake in Fashionphile,
a leading pre-owned e-commerce company focused exclusively on
ultra-luxury handbags and accessories. With this investment, Neiman
Marcus Group becomes the first major luxury retailer to directly invest
in pre-owned, an attractive and fast-growing segment projected to grow
to $23 billion by 2023.1


Together, Neiman Marcus and Fashionphile will create an elevated
pre-owned experience for their consumers by matching the physical
footprint and loyal customer base of Neiman Marcus with Fashionphile’s
digital inventory of 15,000 ultra-luxury items. With limited overlap
between buyers and sellers in the pre-owned luxury market, the exclusive
partnership will serve as a catalyst for Neiman Marcus to enable its
existing customers to participate in pre-owned, while also reaching new,
younger shoppers ahead of their peak spending years.

“Our investment in Fashionphile is an exciting step in Neiman Marcus
Group’s transformation into a luxury customer platform, as we work to
better serve our customers, continue to shape the future of luxury and
position Neiman Marcus for long-term and sustainable growth,” said
Geoffroy van Raemdonck, Chief Executive Officer, Neiman Marcus Group.
“Over half our customers already engage in pre-owned luxury, and this
exclusive partnership exemplifies our commitment to providing our
customers with services and offerings they want and need. Fashionphile’s
hyper focus on curating high-quality supply and providing best-in-class
shopping experiences makes it the ideal partner. With Fashionphile, we
will engage with customers participating in the secondary market and
introduce Neiman Marcus to younger and aspirational shoppers already
devoted to luxury brands. We look forward to partnering with
Fashionphile to create yet another exciting reason to experience our
stores.”

Founded in 1999, Fashionphile is an ultra-luxury pre-owned leader
offering one of the largest inventories, best-in-class authentication
and a direct buyout model. Ranked as one of the top most-searched
fashion brands on Google in 2018, the company is well-established,
profitable, and poised for growth.

“Neiman Marcus is the perfect partner for Fashionphile as we pursue more
innovative ways to engage with customers,” said Sarah Davis, Founder and
President of Fashionphile. “Since our launch two decades ago,
Fashionphile has expanded to become one of the leading and most trusted
destinations for pre-owned luxury. I am excited about our future as we
enter this new stage in the company’s growth.”

“Customers are approaching luxury in new ways, and pre-owned is at the
center of that shift,” said Ben Hemminger, Fashionphile’s Co-founder and
Chief Executive Officer. “Fashionphile is ideally positioned to benefit
from this trend, and we look forward to leveraging the resources,
capabilities and expertise of Neiman Marcus to help us scale more
quickly.”

As part of the partnership, Neiman Marcus and Fashionphile will be
launching new ways for both buyers and sellers to more easily
participate in pre-owned. For instance, at select Neiman Marcus stores,
customers will be able to not only receive an immediate quote for their
items from Fashionphile, but also immediate payment they can use that
day to reinvest in new luxury fashion items at Neiman Marcus. Pre-owned
merchandise will continue to be sold exclusively through
Fashionphile.com.

Kirkland & Ellis LLP served as legal advisor to Neiman Marcus Group. DCS
Advisory served as financial advisor and Latham & Watkins LLP served as
legal advisor to Fashionphile.

About Neiman Marcus Group

Neiman Marcus Group LTD LLC is a luxury, multi-branded, omni-channel
fashion retailer conducting integrated store and online operations under
the Neiman Marcus, Bergdorf Goodman, Neiman Marcus Last Call, Horchow,
and mytheresa brand names. For more information, visit http://www.neimanmarcusgroup.com.

About Fashionphile

Founded in 1999, FASHIONPHILE is the leader in buying and selling
ultra-luxury pre-owned handbags and accessories online. The recommerce
pioneer ranked as one of the most searched fashion brands on Google in
2018 and is known for its never-ending inventory of the most coveted
handbags, a direct buyout model, and best-in-class authentication.

12019 thredUP report, https://www.thredup.com/resale

Contacts

John Walls
Director, Brand Public Relations
Neiman Marcus Group
+1-214-573-5822
john_walls@neimanmarcus.com

Fashionphile
pr@fashionphile.com