They sell used and damaged items.

Full Review
Be careful when buying clearance or sale handbags online. I have received several damaged and used looking Prada and Gucci bags. Some have come without the dustbags and authenticity cards, and are usually shipped doubled over and stuffed into tiny boxes, thus arriving damaged from poor packaging. I have complained to customer service reps on many occasions, and they say they will bring it up to managers in quality control, but it has still been happening as of 9/2010. The last straw was a white Prada bag doubled over and crammed into a small box with no dust cover over it (they put generic white dust covers when there is not an original), and it had blue ink marks on it and was scuffed on all sides.

I have also received used and damaged full price items, as well. I preordered a Prada wallet in 8/2010 and received a wallet that had a gash or deep scuff mark in the leather on the front. I also received a Bobbi Brown makeup pallete Chrome Pallete) last fall online that had clearly been swiped my someone's fingers. I am no longer shopping at NM online, needless to say, as it has been happening more frequently and it is not worth wasting time on so many damaged goods for the occasional quality bargain that somes around.