**EXHIBIT 12.1**

 

**Neiman Marcus, Inc.**

**Computation of Ratio of Earnings to Fixed Charges**

**(Unaudited)**

 
| ** **                                                      | ** ** | **(Successor)**                                                      | ** ** | ** **                                                      | **(Predecessor)** | ** **                                                            |
|-----------------------------------------------------------------|------------|----------------------------------------------------------------------|------------|-----------------------------------------------------------------|-------------------|-----------------------------------------------------------------------|
| **(in thousands, except ratios)**                | ** ** | **Fiscal********year********ended********July 31,********2010** | ** ** | **Fiscal********year********ended********August 1,  2009** | ** **        | **Fiscal********year********ended********August 2,********2008** | ** ** | **Fiscal********year********ended********July 28,********2007** | ** ** | **Forty-three  weeks********ended********July 29,  2006(a)** | ** ** | ** ** | **Nine********weeks********ended********October 1,  2005(a)** | ** ** |
|                                                            |       |                                                                 |       |                                                            |              |                                                                  |   |   |   |   |   |   |   |   |
| Fixed  Charges:                                                 |       |                                                                 |       |                                                            |              |                                                                  |   |   |   |   |   |   |   |   |
| Interest  on debt                                               |       | $                                                                    | 219,400    |                                                            | $                 | 221,951                                                               |   | $ | 233,557 |   | $ | 255,859 |   | $ | 214,777 |   |   | $ | 3,186 |   |
| Amortization  of debt discount and expense                      |       | 18,697                                                               |       | 17,185                                                          |              | 14,217                                                                |   | 14,141 |   | 11,728 |   |   | 96 |   |
| Interest  element of rentals                                    |       | 25,146                                                               |       | 24,750                                                          |              | 27,291                                                                |   | 24,915 |   | 19,404 |   |   | 3,729 |   |
| Total  fixed charges                                            |       | $                                                                    | 263,243    |                                                            | $                 | 263,886                                                               |   | $ | 275,065 |   | $ | 294,915 |   | $ | 245,909 |   |   | $ | 7,011 |   |
| (Loss)  earnings:                                               |       |                                                                 |       |                                                            |              |                                                                  |   |   |   |   |   |   |   |   |
| (Loss)  earnings from continuing operations before income taxes |       | $                                                                    | (5,313     | )                                                               | $                 | (888,491                                                              | ) | $ | 226,629 |   | $ | 216,998 |   | $ | 41,043 |   |   | $ | 71,173 |   |
| Add  back:                                                      |       |                                                                 |       |                                                            |              |                                                                  |   |   |   |   |   |   |   |   |
| Fixed  charges                                                  |       | 263,243                                                              |       | 263,886                                                         |              | 275,065                                                               |   | 294,915 |   | 245,909 |   |   | 7,011 |   |
| Amortization  of capitalized interest                           |       | 1,112                                                                |       | 1,058                                                           |              | 1,018                                                                 |   | 495 |   | 776 |   |   | 105 |   |
| Less:                                                           |       |                                                                 |       |                                                            |              |                                                                  |   |   |   |   |   |   |   |   |
| Capitalized  interest                                           |       | (286                                                                 | )          | (993                                                            | )                 | (3,036                                                                | ) | (2,825 | ) | (3,446 | ) |   | (1,146 | ) |
| Total  earnings (loss)                                          |       | $                                                                    | 258,756    |                                                            | $                 | (624,540                                                              | ) | $ | 499,676 |   | $ | 509,583 |   | $ | 284,282 |   |   | $ | 77,143 |   |
| Ratio  of earnings to fixed charges (b)                         |       |                                                                 | (c)        |                                                            | (d)               | 1.8                                                                   |   | 1.7 |   | 1.2 |   |   | 11.0 |   |

 

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(a)           All periods presented have been adjusted to exclude theoperations of Kate Spade LLC.

 

(b)           Interest associated with income tax liabilities isexcluded from our calculation.

 

(c)           For fiscal year 2010, the aggregate amount of fixedcharges exceeded our earnings by approximately $4.5 million, which is theamount of additional earnings that would have been required to achieve a ratioof earnings to fixed charges of 1.0x for such period.

 

(d)           For fiscal year 2009, the aggregate amount of fixedcharges exceeded our earnings by approximately $888.4 million, which is theamount of additional earnings that would have been required to achieve a ratioof earnings to fixed charges of 1.0x for such period.  The deficiency of the ratio of earnings tofixed charges for fiscal year 2009 is primarily due to the pretax impairmentcharges related to 1) $329.7 million for the writedown to fair value of goodwill,2) $343.2 million for the writedown to fair value of the net carrying value oftradenames and 3) $30.3 million for the writedown to fair value of the netcarrying value of certain long-lived assets.

 

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