The Neiman Marcus Group Reports December Revenues <a name='GNR'></a>

January 4, 2001 at 12:00 AM EST
Chestnut Hill, Mass., January 4, 2001 -- The Neiman Marcus Group, Inc. (NYSE: NMG/A, NMG/B) announced the following preliminary company-wide revenues:

5 weeks ended*

  December 30, 2000 January 1, 2000 % Chg
Total Revenues $ 473.5 million $ 459.1 million +3.1%
Comparable Revenues $ 469.0 million $ 459.1 million +2.1%

22 weeks ended*

  December 30, 2000 January 1, 2000 % Chg
Total Revenues $1,459.8 million $1,378.0 million +5.9%
Comparable Revenues $1,452.8 million $1,378.0 million +5.4%

*Fiscal year ends July 28, 2001

The company reported comparable revenue growth of 2.1 percent in the five-week period on top of a 14.4 percent increase in the year-ago period.

Comparable revenues in the Specialty Retail Stores segment, which includes Neiman Marcus Stores and Bergdorf Goodman, rose 0.7 percent in the period compared to a 12.6 percent increase a year ago. Modest sales gains in the segment reflected stronger revenue increases at Neiman Marcus stores on the East and West coasts, which were offset by sluggish business in Texas and the Midwest. The fine apparel and beauty categories performed well, while bridge apparel and men's clothing were weaker. Manhattan-based Bergdorf Goodman reported good revenue gains at both its Main and Men's stores.

Comparable revenues in the Direct Marketing segment rose 6.1 percent in the five-week period. Sales increases in the Chef's Catalog division and continued strength in hardgoods from Horchow offset softer demand for apparel.

Neiman Marcus on-line sales more than tripled compared to the year-ago holiday period, following the October 1999 launch of Comparable revenues from the Kate Spade and Laura Mercier brands were up more than 35 percent.

To offset lower-than-planned holiday sales -- particularly at Neiman Marcus Stores -- and resulting higher markdowns, the company began implementing a previously announced cost reduction plan across both business segments in December. The Neiman Marcus Group includes the Specialty Retail Stores segment, which consists of Neiman Marcus Stores and Bergdorf Goodman, and Neiman Marcus Direct, the Company's direct marketing operation.

Information about the company can be accessed at

Statements in this release referring to the expected future plans and performance of the Company are forward-looking statements. Actual future results may differ materially from such statements. Factors that could affect future performance include, but are not limited to: changes in economic conditions or consumer confidence; integration of acquired businesses; changes in consumer preferences or fashion trends; delays in anticipated store openings; adverse weather conditions, particularly during peak selling seasons; changes in demographics or retail environments; competitive influences; significant increases in paper, printing and postage costs; and changes in the Company's relationships with designers and other resources. For more information, see the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances.