How much did Neiman Marcus pay for a 56% stake in Kate Spade in 1999?

Neiman Marcus paid approximately $33.6 million for a 56% stake in Kate Spade in 1999. The investment gave the luxury retailer majority ownership of the young handbag company while leaving the founding group with the remaining interest and responsibility for day-to-day operations.

The deal came only a few years after Kate and Andy Spade, Elyce Arons, and Pamela Bell founded the company in 1993. Kate Spade’s handbags had attracted attention for their clean shapes, bright colors, practical size, and relatively accessible luxury pricing. By 1998, the company’s sales had reached about $27 million, helping make it an appealing growth investment.

The exact figure is sometimes rounded to $34 million in summaries, which explains why both numbers appear in historical accounts. The more precise amount recorded in Neiman Marcus’s corporate filings is $33.6 million. Neiman Marcus later acquired the remaining 44% stake in 2006, then sold the complete business to Liz Claiborne later that year for roughly $124 million.