SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, DC 20549

                                   FORM 10-K


                 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
                    OF THE SECURITIES EXCHANGE ACT OF 1934

      For the fiscal year ended:                      Commission file number:
      August 3, 1996                                  33-88098

                       NEIMAN MARCUS FUNDING CORPORATION
            (Exact name of registrant as specified in its charter)


                  Delaware                      04-2354838
            (State or other jurisdiction        (I.R.S. Employer
             of incorporation or organization)   Identification No.)




                                1201 Elm Street
                             Dallas, Texas  75201
              (Address of principal executive offices) (zip code)
              Registrant s telephone number, including area code:
                                (214) 761-2300


          Securities registered pursuant to Section 12(b) of the Act:
                                     None

          Securities registered pursuant to Section 12(g) of the Act:
                 Neiman Marcus Group Credit Card Master Trust
            7.60% Class A Asset Backed Certificates, Series 1995-1
            7.75% Class B Asset Backed Certificates, Series 1995-1


Indicate by check mark whether the Registrant has (1) filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports) and (2) has been subject to such
filing requirements for the past 90 days.
                        Yes   X           No

                                       <PAGE>





State the aggregate market value of the voting stock held by non-affiliates of
the Registrant: NONE - all of the voting stock of the Registrant is held by
The Neiman Marcus Group, Inc., and there is no public market for such stock.

                                       <PAGE>






                                    PART I

Item 1.     Business

            The Neiman Marcus Group Credit Card Master Trust (the "Trust") was
            formed pursuant to the Pooling and Servicing Agreement dated as of
            March 1, 1995 (the "Pooling and Servicing Agreement") among The
            Neiman Marcus Group, Inc. ("NMG") as Servicer, its wholly owned
            subsidiary, Neiman Marcus Funding Corporation ("NMFC") as Seller,
            and The Chase Manhattan Bank, N.A., as Trustee (the "Trustee"). 
            On March 15, 1995, the Trust issued $225,000,000 aggregate
            principal amount of Class A 7.60% Asset Backed Certificates,
            Series 1995-1 (the "Class A Certificates"); $21,000,000 aggregate
            principal amount of Class B 7.75% Asset Backed Certificates,
            Series 1995-1 (the "Class B Certificates"); and $54,000,000
            aggregate principal amount of Class C Asset Backed Certificates,
            Series 1995-1 (the "Class C Certificates"), pursuant to the
            Pooling and Servicing Agreement.  The property of the Trust
            includes a pool of receivables arising under consumer revolving
            credit accounts originated by NMG.  The receivables were sold by
            NMG to NMFC pursuant to a Receivables Purchase Agreement dated as
            of March 1, 1995 between NMG and NMFC, and the receivables were
            sold by NMFC to the Trust pursuant to the Pooling and Servicing
            Agreement.  The only business of NMFC is to perform its
            obligations as Seller in connection with the issuance by the Trust
            of the Class A, Class B and Class C Certificates pursuant to the
            Receivables Purchase Agreement, the Pooling and Servicing
            Agreement, and the Series 1995-1 Supplement to the Pooling and
            Servicing Agreement.

Item 2.     Properties

            See Item 1 for a description of the property of the Trust

Item 3.     Legal Proceedings

            None

Item 4.     Submission of Matters to a Vote of Security Holders

            None

                                       <PAGE>





                                    PART II

Item 5.     Market For Registrant's Common Equity
            And Related Stockholder Matters           

            The Class A and Class B Certificates are held and delivered in 
            book entry form through the facilities of The Depository Trust
            Company ("DTC"), a "clearing agency" registered pursuant to the
            provisions of Section 17A of the Securities Exchange Act of 1934
            as amended.  The Certificates representing investors' interests in
            the Trust are registered in the name of Cede & Co., the nominee of
            DTC.

            To the best knowledge of the Registrant, there is no established 
            public trading market for  the Certificates.

            The Class C Certificate is held by NMFC, and all of the common 
            stock of NMFC is owned by NMG.  There is no public market for the
            common stock of NMFC.

Item 6.     Selected Financial Data

            Not Applicable

Item 7.     Management's Discussion and Analysis of Financial Condition and 
            Results of Operations                                              


            Not Applicable

Item 8.     Financial Statements and Supplementary Data

            Not Applicable

Item 9.     Changes in and Disagreements With Accountants On Accounting And 
            Financial Disclosure                                               
    

            None

Item 10.    Directors and Executive Officers of the Registrant

            Not Applicable

Item 11.    Executive Compensation

            Not Applicable







                                       <PAGE>








                                   PART III

Item 12.    Security Ownership Of Certain Beneficial Owners And Management

      (a) The Class A Certificates and the Class B Certificate, which
represent investors' interests in the Trust, are registered in the name of
Cede & Co., the nominee of The Depository Trust Company ("DTC"), and an
investor holding an interest in the Trust is not entitled to receive a
Certificate representing such interest except in certain limited
circumstances.  Accordingly, Cede & Co. is the sole holder of record of the
Class A and Class B Certificates, which it held on behalf of brokers, dealers,
banks and other direct participants in the DTC system at August 3, 1996.  Such
direct participants may hold Certificates for their own accounts or for the
accounts of their customers.  At August 3, 1996, the following direct DTC
participants held positions in Certificates representing interests in the
Trust equal to or exceeding 5% of the total principal amount of the
Certificates of each Class outstanding on that date:

<TABLE>
<CAPTION>
Title of                                     Aggregate Amount           Percentage
Class       Name                             of Certificates Held       of Ownership

Series 1995-1
<S>         <S>                              <C>                        <C>
Class A     Bankers Trust Company            $79,000,000                35.1%
            Chase Manhattan Bank             $51,360,000                22.8%
            Bank of New York                 $42,150,000                18.7%
            State Street Bank - Custodian    $19,000,000                 8.4%
            Citibank                         $12,400,000                 5.5%


Class B     Chase Manhattan Bank             $21,000,000                100%
</TABLE>

The address of each of the above participants is 

      c/o   The Depository Trust Company
            7 Hanover Square
            New York, NY 10004


      NMFC, as of August 3, 1996, owned 100% of the Class C Certificate, which
represented beneficial ownership of a residual interest in the assets of the
Trust as provided in the Pooling and Servicing Agreement.

      The Neiman Marcus Group, Inc. is the owner of 100% of the issued and

                                       <PAGE>

outstanding common stock of the Registrant, which is not traded in any market.




Item 13.    Certain Relationships and Related Transactions

            None


                                    PART IV

Item 14.    Exhibits, Financial Statement Schedules, And Reports On Form 8-K

(a)   The following Exhibits are filed as part of this Report:

       
      20.1    1996 Annual Servicer's Certificate

      99.1    Annual Servicing Report of Independent Public Accountants
              pursuant to Section 3.06 of the Pooling and Servicing Agreement

(b)   Reports on Form 8-K

      Current Reports on Form 8-K are filed on or before the Distribution Date
      each month (on, or the first business day after, the 15th of each
      month).  The reports include as an Exhibit the Monthly Servicer s
      Certificate.  Current Reports on Form 8-K were filed with the Securities
      and Exchange Commission on: November 9, 1995, December 12, 1995, January
      12, 1996, February 13, 1996, March 12, 1996, April 9, 1996, May 10,
      1996, June 11, 1996, July 11, 1996, August 9, 1996,  September 10, 1996,
      and October 11, 1996.


                                  SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.


                                    NEIMAN MARCUS FUNDING CORPORATION

                                    By:   /S/ Paul F. Gibbons
                                          Paul F. Gibbons
                                          Vice President and Treasurer
Date: November 1, 1996











                                        <PAGE>
 







                                 EXHIBIT INDEX


EXHIBIT                       DESCRIPTION                   SEQUENTIALLY
NUMBER                                                      NUMBERED PAGE


20.1                          Annual Servicer's Certificate       8

99.1                          Annual Servicing Report of          9
                              Independent Public Accountants
                              pursuant to Section 3.06 of the
                              Pooling and Servicing Agreement





































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