What: Investors seemed to wonder about the upside to the $200 million minority investment that Farfetch plans to make in Neiman Marcus.

Why it is important: This deal gives Farfetch a much stronger footing in the key U.S. market and an opportunity to push more goods through its platform.

Farfetch has, at times, been a tough company for investors to understand however analysts have estimated that the partnership with NMG would contribute about $20 million in profits to Farfetch in fiscal 2023 and about $100 million over the medium term.

The partnership will start with the “re-platforming” of Neiman Marcus’ Bergdorf Goodman website and app. But the deal will eventually also bring Farfetch’s high-tech approach to Bergdorf’s New York flagship and plug the whole Neiman Marcus business into the Farfetch ecosystem.

Analysts are trying to get their head around Farfetch-Neiman Marcus Deal