SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549
                                   FORM 10-Q


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



For the Quarter Ended                       May 2, 1998                       

Commission File Number                        1-9659                          


                          THE NEIMAN MARCUS GROUP, INC.                      
           (Exact name of registrant as specified in its charter)



           Delaware                                                 95-4119509
(State or other jurisdiction of                               (I.R.S. Employer
incorporation or organization)                             Identification No.)



27 Boylston Street, Chestnut Hill, MA                                    02167
(Address of principal executive offices)                            (Zip Code)




                              (617) 232-0760                                  
             (Registrant's telephone number, including area code)


Indicate  by check  mark  whether the  registrant  (1) has  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       




As of  June 10, 1998, there were 49,759,047 outstanding  shares of the issuer's
common stock, $.01 par value.

                                       <PAGE>
[PAGE]

                         THE NEIMAN MARCUS GROUP, INC.



                                   I N D E X




Part I.     Financial Information                                 Page Number

  Item 1.   Condensed Consolidated Balance Sheets as of
              May 2, 1998, August 2, 1997 and May 3, 1997               1
    
            Condensed Consolidated Statements of Earnings
              for the Thirty-Nine and Thirteen Weeks Ended
              May 2, 1998 and May 3, 1997                               2

            Condensed Consolidated Statements of Cash Flows
              for the Thirty-Nine Weeks Ended May 2, 1998
              and May 3, 1997                                           3

            Notes to Condensed Consolidated Financial Statements        4-5

  Item 2.   Management's Discussion and Analysis of Financial
              Condition and Results of Operations                       6-8




Part II.    Other Information

  Item 6.   Exhibits and Reports on Form 8-K                            9



Signatures                                                              10


Exhibit 27.1                                                            11

                                       <PAGE>
[PAGE]
<TABLE>

                                     THE NEIMAN MARCUS GROUP, INC.
                                 CONDENSED CONSOLIDATED BALANCE SHEETS
                                              (UNAUDITED)
<CAPTION>

                                             May 2,     August 2,      May 3,
                                               1998          1997        1997
                                         ----------   -----------  ----------
(In thousands)                                                   
<S>                                      <C>          <C>          <C>
Assets
Current assets:
  Cash and equivalents                   $   13,278   $   16,861   $   21,122
  Undivided interests in 
    NMG Credit Card Master Trust            165,906      128,341      151,055
  Accounts receivable, net                   60,185       55,041       60,438
  Merchandise inventories                   516,272      460,412      490,062
  Deferred income taxes                      19,049       19,049       21,666
  Other current assets                       47,825       54,339       40,812
                                         ----------   ----------   ----------
    Total current assets                    822,515      734,043      785,155
                                         ----------   ----------   ----------
Property and equipment, net                 469,107      454,133      451,104

Intangibles and other assets                121,677       99,684      100,171
                                         ----------   ----------   ----------
    Total assets                         $1,413,299   $1,287,860   $1,336,430
                                         ==========   ==========   ==========
Liabilities and Shareholders' Equity
Current liabilities:
  Notes payable and current maturities
    of long-term liabilities             $   16,488   $   8,810    $    8,797
  Accounts payable                          172,019     174,952       164,484
  Accrued liabilities                       181,247     147,730       159,838
                                         ----------   ---------    ----------
    Total current liabilities               369,754     331,492       333,119
                                         ----------   ---------    ----------
Long-term liabilities:
  Revolving credit agreement                300,000     300,000       360,000
  Other long-term liabilities                71,292      69,738        69,268
                                         ----------   ---------    ----------
    Total long-term liabilities             371,292     369,738       429,268
                                         ----------   ---------    ----------
Commitments and contingencies

Deferred income taxes                        31,902      31,902        33,329
                             
Common stock                                    499         499           499
Additional paid-in capital                  481,196     485,658       485,656
Retained earnings                           158,656      68,571        54,559
                                         ----------   ---------    ----------
    Total liabilities and shareholders'
      equity                             $1,413,299  $1,287,860    $1,336,430
                                         ==========  ==========    ==========
</TABLE>

                       See Notes to Condensed Consolidated Financial Statements.


                                            <PAGE>
[PAGE]
<TABLE>
                                     THE NEIMAN MARCUS GROUP, INC.
                             CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
                                              (UNAUDITED)


<CAPTION>
(In thousands except            Thirty-Nine Weeks Ended  Thirteen Weeks Ended 
 for per share amounts)              May 2,      May 3,      May 2,    May 3, 
                                       1998        1997        1998      1997 
                                 ----------  ----------  ---------- ---------
<S>                              <C>         <C>         <C>        <C>
Revenues                         $1,836,618  $1,712,582  $  547,732 $ 506,532 

Cost of goods sold including
  buying and occupancy costs      1,231,597   1,155,034     368,437   343,834 
Selling, general and
  administrative expenses           427,925     396,270     130,915   118,360 
Corporate expenses                   10,153       9,933       3,458     3,137 
                                 ----------  ----------   --------- ---------
Operating earnings                  166,943     151,345      44,922    41,201 

Interest expense                    (16,802)    (20,439)     (4,986)   (6,086)
                                 ----------  ----------   --------- ---------
Earnings before income taxes        150,141     130,906      39,936    35,115  
Income taxes                        (60,056)    (53,671)    (15,974)  (14,397)
                                 ----------  ----------   --------- ---------
Net earnings                         90,085      77,235      23,962    20,718 
Dividends and accretion on
  redeemable preferred stocks          -         (6,201)       -         -    
Loss on redemption of
  redeemable preferred stocks          -        (22,361)       -         -    
                                 ----------  ----------  ---------- ---------
Net earnings applicable
  to common shareholders         $   90,085  $   48,673  $   23,962 $  20,718 
                                 ==========  ==========  ========== =========
Weighted average number
  of common and common 
  equivalent shares 
  outstanding:

  Basic                              49,825      46,259      49,760    49,873 
                                 ==========  ==========  ========== =========
  Diluted                            49,989      46,439      49,957    50,026 
                                 ==========  ==========  ========== =========
Earnings per share
  applicable to common
  shareholders:

  Basic                         $      1.81  $     1.05  $      .48 $     .42 
                                ===========  ==========  ========== =========
  Diluted                       $      1.80  $     1.05  $      .48 $     .41 
                                ===========  ==========  ========== =========

 
</TABLE>


                       See Notes to Condensed Consolidated Financial Statements.

                                       <PAGE>

[PAGE]
<TABLE>
                                     THE NEIMAN MARCUS GROUP, INC.
                            CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                              (UNAUDITED)


<CAPTION>
(In thousands)                                  Thirty-Nine Weeks Ended 
                                                    May 2,       May 3, 
                                                      1998         1997 
                                                  --------     --------
CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                               <C>          <C>
  Net earnings                                    $ 90,085     $ 77,235 
  Adjustments to reconcile net earnings
    to net cash provided by
      operating activities:                                
      Depreciation and amortization                 46,516       44,364 
      Other items                                    5,227        1,763 
      Changes in current assets and 
      liabilities:
        Accounts receivable                         (4,183)      (9,388)
        Merchandise inventories                    (50,210)     (46,114)
        Other current assets                         9,378        4,556 
        Accounts payable and
          accrued liabilities                       19,942      (15,671)
                                                  --------     --------
Net cash provided by
  operating activities                             116,755       56,745 
                                                  --------     --------

CASH FLOWS FROM INVESTING ACTIVITIES
  Capital expenditures                             (57,679)     (35,086)
  Acquisition of Chef's Catalog                    (31,000)         -   
  Purchases of held-to-maturity securities        (513,362)    (457,784)
  Maturities of held-to-maturity securities        475,797      421,121 
                                                  --------     --------
Net cash used by investing activities             (126,244)     (71,749)


CASH FLOWS FROM FINANCING ACTIVITIES  
  Proceeds from borrowings                          10,600      173,500 
  Repayment of debt                                    -       (132,000)
  Issuance (repurchase) of common stock             (4,694)     269,189 
  Payment of redemption of preferred stocks            -       (281,426)
  Dividends paid                                       -         (5,796)
                                                  --------     --------
Net cash provided by financing activities            5,906       23,467 
                                                  --------     --------

CASH AND EQUIVALENTS
  Increase (decrease) during the period             (3,583)       8,463 
  Beginning balance                                 16,861       12,659 
                                                  --------     --------
  Ending balance                                  $ 13,278     $ 21,122 
                                                  ========     ========



</TABLE>

                       See Notes to Condensed Consolidated Financial Statements.

                                       <PAGE>
[PAGE]

                         THE NEIMAN MARCUS GROUP, INC.
             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)


1.  Basis of Presentation 

    The  Condensed  Consolidated  Financial Statements  of  The Neiman  Marcus
    Group, Inc. (the Company) are submitted in response to the requirements of
    Form  10-Q  and  should  be read  in  conjunction  with  the  Consolidated
    Financial  Statements in the Company's Annual Report on Form l0-K.  In the
    opinion  of  management,   these  statements   contain  all   adjustments,
    consisting  only of  normal  recurring  accruals,  necessary  for  a  fair
    presentation of the results for the interim periods presented.  The retail
    industry is  seasonal in nature, and  the results of  operations for these
    periods historically have not  been indicative of the  results for a  full
    year. 

    Had the Company repurchased its redeemable preferred stocks at the  
    beginning of the thirteen and thirty-nine week periods ended May 3, 1997,
    basic and diluted earnings per share available to common shareholders for
    those periods would have been $.42 and $.41, and $1.55 and $1.54, 
    respectively.

    Certain reclassifications  have been made to the 1997 financial statements
    to conform to the 1998 presentation.

2.  Merchandise Inventories

    Inventories are stated  at the lower of  cost or market. Substantially all
    of the Company's  inventories are  valued using the  retail method  on the
    last-in, first-out (LIFO) basis.  While the Company believes that the LIFO
    method  provides a better  matching of costs and  revenues, some specialty
    retailers use  the first-in,  first-out (FIFO)  method.  Accordingly,  the
    Company has provided the following data for comparative purposes.

    If  the FIFO  method of  inventory valuation  had been  used to  value all
    inventories, merchandise inventories would have been higher  than reported
    by $21.0 million at May 2, 1998, by $15.0 million at August 2, 1997 and by
    $19.5 million at May  3, 1997.  The FIFO  method would have increased  net
    earnings  by $3.6  million and  $3.5 million  during the  thirty-nine week
    periods ended May 2, 1998 and May 3, 1997, respectively.

3.  Acquisition of Chef's Catalog

    On January 5,  1998 the Company acquired Chef's Catalog  for approximately
    $31.0 million  in cash.   Chef's Catalog  is a direct  marketer of gourmet
    cookware and high-end kitchenware, and its operations are being integrated
    with  NM Direct.  The acquisition  has been accounted for  by the purchase
    method of accounting and, accordingly, the results of operations of Chef's
    Catalog for  the period from  the date of acquisition are  included in the
    accompanying  condensed  consolidated  financial statements.    Intangible
    assets,  consisting primarily of trademarks, customer  lists and goodwill,
    will be  amortized on  a straight-line basis over  their estimated  useful
    lives.

                                       <PAGE>

[PAGE]



                         THE NEIMAN MARCUS GROUP, INC.
             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                 (UNAUDITED)  

4.  Revolving credit agreement

    In  October  1997, the  Company  replaced  its  existing  revolving credit
    agreement with a new revolving credit agreement with 20 banks, pursuant to
    which the Company may borrow up to $650 million.  The new agreement, which
    expires in October  2002, may be terminated by the  Company at any time on
    three business days' notice.  The rate  of interest payable is  determined
    according to one of four  pricing options.  On May 2, 1998,  borrowings of
    $300  million  were  outstanding at  an  interest  rate of  5.9%  and were
    classified as long-term.

5.  Stock repurchase program

    In December 1997, the Board of Directors of the Company authorized  the   
    repurchase of up to one million shares of common stock in the open market.
    During  the thirty-nine weeks  ended May 2, 1998,  the Company repurchased
    160,100 shares  at an average price  of $29.32 per  share under this stock
    repurchase program.

6.  Earnings per share

    Pursuant to the provisions of  Statement of Financial Accounting Standards
    No.  128,  "Earnings  per  Share,"  the weighted  average  shares  used in
    computing  basic and diluted earnings per share (EPS)  are as presented in
    the table below.  No adjustments were  made to net earnings applicable  to
    common shareholders for  the computations of basic and diluted  EPS during
    the periods  presented.  All  options were included in  the computation of
    diluted EPS  because the exercise price  of all options  was less than the
    average market price of the common shares.
<TABLE>
<CAPTION>
                                Thirty-Nine Weeks Ended   Thirteen Weeks Ended
    (in thousands                May 2,          May 3,     May 2,      May 3,
     of shares)                    1998            1997       1998        1997
                                 ------          ------     ------      ------
     <S>                         <C>             <C>        <C>         <C>
    Shares for computation                  
     of basic EPS                49,825          46,259     49,760      49,873
    Effect of assumed
     option exercises               164             180        197         153
                                 ------          ------     ------      ------
    Shares for computation
     of diluted EPS              49,989          46,439     49,957      50,026
                                 ======          ======     ======      ======
</TABLE>

7.  Subsequent event

    In  May  1998,  the Company  issued  $250  million  of  senior  notes  and
    debentures  to the public.  The proceeds of the debt offering will be used
    to  repay  borrowings  outstanding  on  the  Company's   revolving  credit
    agreement.  The debt is comprised of  $125 million 6.65% senior notes  due
    2008 and $125 million 7.125%  senior debentures due 2028.  Interest on the
    securities is payable semiannually in arrears beginning December 1998.

                                       <PAGE>

[PAGE]

                         THE NEIMAN MARCUS GROUP, INC.
               MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                      CONDITION AND RESULTS OF OPERATIONS

Results of  Operations for  the Thirty-Nine Weeks  Ended May 2,  l998 Compared
with the Thirty-Nine Weeks Ended May 3, 1997

Revenues in the thirty-nine weeks ended May 2, l998 increased 7.2% to $1.84
billion from  $1.71 billion  in  the  thirty-nine weeks  ended  May 3,  1997.
Comparable  sales for  the period  increased 6.2%.    Revenues at  both Neiman
Marcus Stores  and Bergdorf  Goodman  increased, reflecting  comparable  sales
increases of  7.2% and 9.8%,  respectively.   NM Direct revenues  increased in
comparison to the prior year period as  a result of sales from Chef's Catalog,
a  direct marketer  of gourmet  cookware and  high-end kitchenware,  which was
acquired on January 5, 1998.

Cost of  goods sold  including buying  and occupancy  costs increased  6.6% to
$1.23 billion during the thirty-nine week period ended May 2, 1998 compared to
$1.16 billion  during the same period last year, primarily due to higher sales
volume.  As a percentage of  revenues, cost of goods sold was 67.1%  in fiscal
l998 compared to 67.4% in fiscal l997.   The lower percentage is primarily due
to proportionately lower buying  and occupancy costs, and to higher markups at
Neiman Marcus Stores and Bergdorf Goodman.

Selling, general and administrative expenses increased 8.0%  to $427.9 million
from $396.3 million in fiscal 1997, primarily due to higher  selling costs and
increased  catalogue circulation for the thirty-nine week period ending May 2,
1998.   As  a  percentage of  revenues,  selling, general  and  administrative
expenses were  23.3% and 23.1% in  the first thirty-nine weeks  of fiscal 1998
and 1997, respectively.

Interest expense decreased 17.8% to  $16.8 million in the fiscal  1998 period.
The  decrease  resulted  from lower  average  borrowings  as well  as  a lower
effective interest rate  which resulted from the repayment at  maturity of the
Company's fixed rate senior  notes with borrowings under its  revolving credit
agreement.

Results of Operations for the Thirteen Weeks Ended May 2, l998 Compared with
the Thirteen Weeks ended May 3, l997

Revenues  in the  thirteen weeks ended  May 2,  l998 increased  8.1% to $547.7
million  from  $506.5  million  in  the  thirteen  weeks  ended  May  3, 1997.
Comparable sales  for the period increased  5.6%.  Higher  comparable sales at
Neiman  Marcus Stores and Bergdorf Goodman in  the thirteen weeks ended May 2,
1998 contributed to the increase in revenues over the same period in fiscal
1997.  NM Direct also contributed to the increase, as sales  generated from the
recently acquired Chef's Catalog  more than offset  a comparable sales decrease
in the fiscal 1998 period.

Cost of goods sold including buying and occupancy costs increased  7.2% in the
thirteen  week period ended May 2, 1998 compared to the same period last year,
primarily due to  higher sales volume.   As a percentage of  revenues, cost of
goods sold was  67.3% in fiscal l998  compared to 67.9%  in fiscal l997.   The
decrease in  the 1998  quarter is  primarily due to  higher markups  at Neiman
Marcus Stores and Bergdorf Goodman.

Selling, general  and administrative expenses  increased 10.6%  in the  fiscal
1998 period,  primarily  due to  higher  sales volume.    As a  percentage  of
revenues,  selling, general and administrative  expenses increased to 23.9% in
fiscal  1998  compared to  23.4%  in  fiscal  1997.    This  increase  relates
principally to higher  catalogue circulation  costs, and to  a lesser  extent,<PAGE>
lower finance charge income  and pre-opening costs associated with  the Neiman
Marcus store under construction in Hawaii.

                                       <PAGE>

[PAGE]

                         THE NEIMAN MARCUS GROUP, INC.
               MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                      CONDITION AND RESULTS OF OPERATIONS

Interest expense decreased 18.1% to $5.0 million in the fiscal 1998 period,
resulting primarily from lower average borrowings outstanding.

Changes in Financial Condition and Liquidity since August 2, 1997

During  the thirty-nine  weeks ended  May  2, 1998,  the Company  financed its
working capital  needs and capital  expenditures primarily with  cash provided
from  its  revolving  credit agreement.    The  following discussion  analyzes
liquidity  and  capital  resources  by  operating,  investing  and   financing
activities as presented  in the Company's Condensed Consolidated  Statement of
Cash Flows.

Net  cash provided  by  operating activities  was  $116.8 million  during  the
thirty-nine weeks  ended May  2, l998.   The  primary items  affecting working
capital  were an increase in merchandise inventories ($50.2 million) offset in
part  by  an  increase in  accounts  payable  and  accrued liabilities  ($19.9
million).

Capital expenditures were $57.7 million during the thirty-nine weeks ended May
2, 1998 as compared to $35.1 million for the  same period in fiscal 1997.  The
Company's capital expenditures consisted principally  of the construction of a
new Neiman Marcus  store in Honolulu,  Hawaii, expected to  open in  September
1998, and renovations of  existing Neiman Marcus and Bergdorf  Goodman stores.
Capital  expenditures are  expected to  approximate $100.0 million  during the
current fiscal year.

In January 1998, the  Company acquired Chef's Catalog for  approximately $31.0
million in  cash.   The acquisition was  funded through  borrowings under  the
Company's revolving credit agreement.

The Company  increased its bank  borrowings by  $10.6 million since  August 2,
1997.  At May  2, 1998,  the Company  had $350.0  million available  under its
revolving credit  facility.  In May  1998, the Company issued  $250 million of
senior notes and debentures to the public.  The  proceeds of the debt offering
have  been  used  to repay  borrowings  outstanding  on  its revolving  credit
facility.  The Company believes that it will have sufficient resources to fund
its planned capital growth and operating requirements.

Year 2000 Date Conversion

The Company has evaluated the  effect of the year 2000 on its computer systems
and  is implementing  plans  to  ensure  its  systems  and  applications  will
effectively process information necessary to support ongoing operations of the
Company in the  year 2000 and beyond.   The Company is  engaging both internal
and external  resources to  test its  systems for year  2000 compliance.   The
Company currently  anticipates substantially completing the  year 2000 project
by January 1999.  Based on management's current estimates, the costs of system
modifications  and enhancements,  which  have been  and  will be  expensed  as
incurred, are not expected to be material  to the results of operations or the
financial position of  the Company.   Additionally, the  Company continues  to
invest  in new technology in  connection with its  ongoing systems development
plans.

                                       <PAGE>

[PAGE]


                         THE NEIMAN MARCUS GROUP, INC.
               MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                      CONDITION AND RESULTS OF OPERATIONS


The Company  has initiated formal communications with  its significant vendors
to  determine  the  extent  to  which  the  Company's  interface  systems  and
operations are vulnerable to those third parties' failure to rectify their own
year 2000 issues.  Despite the Company's efforts, it is  uncertain whether the
systems  of other  companies  on  which the  Company's  systems  rely will  be
converted  on a  timely basis   and  will not  have an  adverse effect  on the
Company's operations.

Forward-Looking Statements

Statements  in this  release  referring  to  the  expected  future  plans  and
performance  of the  Company are  forward-looking statements.   Actual  future
results may differ materially from such statements.  Factors that could affect
future  performance include,  but  are not  limited  to: changes  in  economic
conditions  or consumer confidence; changes in consumer preferences or fashion
trends; delays  in anticipated  store  openings; adverse  weather  conditions,
particularly during  peak selling  seasons; changes  in demographic  or retail
environments; competitive influences; significant increases in paper, printing
and postage costs; and  changes in the Company's relationships  with designers
and other resources.

                                       <PAGE>

[PAGE]

                         THE NEIMAN MARCUS GROUP, INC.

                                    PART II



PART II


Item 6.   Exhibits and Reports on Form 8-K.

          (a)       Exhibits.


          27.1      Financial data schedule.


          (b)       Reports on Form 8-K.

                    The  Company filed a  Current Report  on Form  8-K on March
                    24,  1998 restating  prior period  Financial Data Schedules
                    in  order  to   reflect  changes  in   earnings  per  share
                    resulting  from  the  adoption  of  Statement  of Financial
                    Accounting Standards No. 128, "Earnings Per Share."

                                       <PAGE>
[PAGE]

                                  SIGNATURES




Pursuant  to the  requirements  of the  Securities  Exchange Act  of  1934, as
amended, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.


                         THE NEIMAN MARCUS GROUP, INC.


Signature                            Title                       Date        





Principal Financial         Senior Vice President and            June 15, 1998
Officer:                    Chief Financial Officer



S/John R. Cook           
John R. Cook


Principal Accounting        Vice President and Controller        June 15, 1998
Officer:                                  



S/Catherine N. Janowski   
Catherine N. Janowski<PAGE>