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                       January 30, 1999                   

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                                    02467
(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 March 8, 1999, there were 49,009,914 outstanding shares of the issuer's
common stock, $.01 per value.

                                       <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
             January 30, 1999, August 1, 1998 and January 31, 1998      1
    
           Condensed Consolidated Statements of Earnings
             for the Twenty-Six and Thirteen Weeks Ended
             January 30, 1999 and January 31, 1998                      2

           Condensed Consolidated Statements of Cash Flows
             for the Twenty-Six Weeks Ended January 30, 1999
             and January 31, 1998                                       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 4.  Submission of Matters to a Vote of Security Holders          9

  Item 6.  Exhibits and Reports on Form 8-K                             10



Signatures                                                              11



Exhibit 27.1                                                            12

                                        <PAGE>
 

<TABLE>
<CAPTION>

                         THE NEIMAN MARCUS GROUP, INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                                  (UNAUDITED)
                                                    
                                        January 30,     August 1, January 31,
(In thousands)                                 1999          1998       1998
                                        -----------    ---------- ----------
<S>                                      <C>          <C>         <C>
Assets
Current assets:
  Cash and equivalents                   $   80,600   $   56,644  $   22,916 
  Undivided interests in 
    NMG Credit Card Master Trust            203,282      138,867     200,159 
  Accounts receivable, net                   58,914       53,571      59,389 
  Merchandise inventories                   495,810      499,068     444,355 
  Deferred income taxes                      24,058       24,058      19,049
  Other current assets                       60,229       61,188      70,885 
                                        -----------   ---------- -----------
    Total current assets                    922,893      833,396     816,753 

Property and equipment, net                 505,456      479,256     461,884 

Other assets                                123,973      125,140     124,691 
                                        -----------  ----------- -----------

    Total assets                         $1,552,322   $1,437,792  $1,403,328 
                                        ===========  =========== ===========
Liabilities and Shareholders' Equity
Current liabilities:
  Notes payable and current maturities
    of long-term liabilities              $   5,932    $   5,963     $ 5,874 
  Accounts payable                          186,920      201,490     180,060 
  Accrued liabilities                       209,099      180,809     173,256 
                                        -----------  ----------- -----------

    Total current liabilities               401,951      388,262     359,190 
                                        -----------  ----------- -----------

Long-term liabilities:
  Notes and debentures                      344,628      284,617     325,000 
  Other long-term liabilities                70,147       71,083      70,946 
  Deferred income taxes                      37,139       37,139      31,902 
                                        -----------  ----------- -----------

    Total long-term liabilities             451,914      392,839     427,848 
                                        -----------  ----------- -----------

Minority interest                             1,098            -           - 

Shareholders' equity:

Common stock                                    490          498         498 
Additional paid-in capital                  466,412      481,295     481,098 
Retained earnings                           230,457      174,898     134,694 
                                        -----------  ----------- -----------

Total liabilities and shareholders'
  equity                                 $1,552,322   $1,437,792  $1,403,328 
                                        ===========  ============ ==========

See Notes to Condensed Consolidated Financial Statements.
</TABLE>
                                                    <PAGE>
<TABLE>

                                     THE NEIMAN MARCUS GROUP, INC.
                             CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
                                              (UNAUDITED)


(In thousands except            Twenty-Six Weeks Ended    Thirteen Weeks Ended
                               -----------------------   ------------------------
 for per share amounts)        January 30,  January 31,  January 30,  January 31, 
                                      1999         1998         1999         1998
                               -----------  -----------  -----------  -----------

<S>                             <C>          <C>            <C>         <C>
Revenues                        $1,376,267   $1,288,886     $789,154    $ 708,387 
Cost of goods sold including
  buying and occupancy costs       932,642      863,160      547,754      487,033 
Selling, general and
  administrative expenses          332,981      297,010      181,095      155,827 
Corporate expenses                   6,973        6,695        3,692        3,557 
                               -----------  -----------  -----------  -----------

Operating earnings                 103,671      122,021       56,613       61,970 

Interest expense                    13,135       11,816        6,999        6,087 
                               -----------   ----------  -----------   ----------

Earnings before income taxes                                                    
    and minority interest           90,536      110,205       49,614       55,883 

Income taxes                        35,309       44,082       19,349       22,353 
                               -----------  -----------  -----------  -----------

Earnings before minority                                                      
    interest                        55,227       66,123       30,265       33,530 

Minority interest in net loss                                       
    of subsidiary                      332            -          332            - 
                               -----------  -----------  -----------  -----------
                                                                         
Net earnings                       $55,559      $66,123      $30,597      $33,530 
                               ===========  ===========  ===========  ===========


Weighted average number of 
    common and common equivalent
    shares outstanding:

    Basic                           49,233       49,833       49,006      49,809 
                               ===========  ===========  ===========  ===========
    Diluted                         49,347       49,995       49,108      49,963 
                               ===========  ===========  ===========  ===========
Earnings per share:

    Basic                        $    1.13     $   1.33       $  .62     $   .67 
                               ===========  ===========  ===========  ===========
    Diluted                      $    1.13     $   1.32       $  .62     $   .67 
                               ===========  ===========  ===========  ===========










   See Notes to Condensed Consolidated Financial Statements.

</TABLE>
                                                   2 <PAGE>
 

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


(In thousands)                                  Twenty-Six Weeks Ended
                                                ----------------------
                                               January 30,  January 31, 
                                                      1999         1998
                                               -----------  -----------
<S>                                              <C>          <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net earnings                                     $55,559     $ 66,123 
  Adjustments to reconcile net earnings
    to net cash provided by
      operating activities:                                
      Depreciation and amortization                 32,893       31,404 
      Minority interest                               (332)           - 
      Other items                                    3,677        3,411 
      Changes in current assets and liabilities:
        Accounts receivable                         (4,239)      (3,387)
        Merchandise inventories                      4,126       21,707 
        Other current assets                           973      (13,682)
        Accounts payable and
          accrued liabilities                        9,283       19,632
                                                ----------   ----------

Net cash provided by operating activities          101,940      125,208 
                                                ----------   ----------
                                                           

CASH FLOWS FROM INVESTING ACTIVITIES
  Capital expenditures                             (55,900)     (36,641)
  Acquisition of Chef's Catalog                          -      (31,000)
  Acquisition of Gurwitch Bristow Products, net            
    of cash acquired                                (2,778)           - 
  Purchases of held-to-maturity securities        (397,009)    (272,094)
  Maturities of held-to-maturity securities        332,594      200,276 
                                                ----------   ----------

Net cash used by investing activities             (123,093)    (139,459)
                                                ----------   ----------


CASH FLOWS FROM FINANCING ACTIVITIES  
  Proceeds from borrowings                          60,000       25,000 
  Repurchase of common stock                       (15,356)      (4,694)
  Other financing activities                           465            - 
                                                ----------   ----------

Net cash provided by financing activities           45,109       20,306 
                                                ----------   ---------- 

CASH AND EQUIVALENTS
  Increase during the period                        23,956        6,055 
  Beginning balance                                 56,644       16,861 
                                                ----------   ----------
  Ending balance                                 $  80,600    $  22,916 
                                                ==========   ==========






   See Notes to Condensed Consolidated Financial Statements.
</TABLE>
                                                   3 <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. 

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 and, 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  $16.5 million at January 30, 1999, by  $14.5 million at August 1, 1998
    and by $19.0 million at January 31, 1998.  The FIFO valuation method would
    have increased  net earnings by $1.2  million and $2.4  million during the
    twenty-six   weeks  ended   January  30,   1999  and  January   31,  1998,
    respectively. 

3.  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.
    In September 1998, the Company's Board of Directors authorized an increase
    in the stock repurchase program to 1.5 million shares.  

    During  the   twenty-six  weeks  ended  January   30,  1999,  the  Company
    repurchased 827,000  shares at an average price of $18.57  per share under
    this stock  repurchase program, and  512,900 shares  were remaining  under
    this program at January 30, 1999.  

4.  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 to  net  earnings  were made  for  the
    computations of basic and diluted EPS during the periods presented.

    Options to  purchase 896,300 shares of  common stock were not  included in
    the computation of diluted EPS for the twenty-six and thirteen weeks ended
    January 30, 1999.  Options to purchase 434,350 shares of common stock were
    not included in  the computation  of diluted  EPS for  the twenty-six  and
    thirteen  weeks ended January 31,  1998.  These  options were not included
    because  the exercise price of those options was  greater than the average
    market price of the common shares.


                                       4 <PAGE>
 



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

<TABLE>
<CAPTION>
4.  Earnings per share (continued)

(In thousands of shares)        Twenty-Six Weeks Ended   Thirteen Weeks Ended
                                ----------------------   --------------------
                            January 30,  January 31,  January 30,  January 31,
                                  1999         1998         1999         1998
                            ----------   ----------   ----------   ----------
<S>                              <C>         <C>         <C>            <C>
Shares for computation of 
    basic EPS                    49,233      49,833      49,006         49,809
Effect of assumed option
    exercises                       114         162         102            154
                            -----------  ----------   ---------    -----------
Shares for computation of 
    diluted EPS                  49,347      49,995      49,108         49,963
                            ===========  ==========   =========    ===========
</TABLE>


5.  Acquisition of Gurwitch Bristow Products

On November  2, 1998, the Company  acquired a 51 percent  interest in Gurwitch
Bristow Products for  approximately $6.7  million in cash.   Gurwitch  Bristow
Products manufactures and markets the Laura Mercier cosmetic lines.

The acquisition  has been accounted  for by the purchase  method of accounting
and, accordingly, the results  of operations of Gurwitch Bristow  Products for
the period from November 2, 1998 are included in the accompanying consolidated
financial statements.  The $5.3 million excess of cost over the estimated fair
value  of  net assets  acquired  was  allocated  to  goodwill, which  will  be
amortized on  a  straight-line basis  over  30  years.   Assets  acquired  and
liabilities assumed have been recorded at their estimated fair values.


6. Subsequent event

On February 1, 1999, the Company acquired a  56 percent interest in Kate Spade
LLC for approximately $33.6 million in cash.  Kate Spade is a manufacturer and
marketer of high-end fabric and leather handbags and accessories.





















                                       5<PAGE>



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

Results of Operations for the Twenty-Six Weeks Ended January 30, 1999 Compared
with the Twenty-Six Weeks Ended January 31, 1998

Revenues  in the  twenty-six  weeks ended  January  30, 1999  increased  $87.4
million or 6.8% over revenues in the twenty-six weeks ended  January 31, 1998.
The  increase  in revenues  was primarily  attributable  to sales  from Chef's
Catalog, acquired in January 1998,  and the new Neiman Marcus store  in Hawaii
which  opened  in September  1998.   Total  comparable sales  for  the Company
increased  1.9%.   Comparable sales  increased 2.8%  at Neiman  Marcus Stores,
decreased 2.1% at Bergdorf Goodman, and decreased 0.3% at NM Direct. 

Cost of  goods sold  including buying  and occupancy  costs increased 8.0%  to
$932.6  million during  the  twenty-six week  period  ended January  30,  1999
compared to the same period last year, primarily due to increased sales.  As a
percentage of  revenues, cost of goods  sold increased to 67.8%  from 67.0% in
the prior year, due primarily to higher markdowns across all divisions.

Selling, general and administrative expenses increased 12.1% to $333.0 million
from $297.0  million in 1998.   As a percentage of  revenues, selling, general
and  administrative expenses increased to 24.2%  from 23.0% in the prior year.
The increase is primarily  attributable to higher selling and  sales promotion
expenses and pre-opening costs.

Interest  expense increased  11.2% to  $13.1 million  in the  twenty-six weeks
ended January  30, 1999 from $11.8  million in the  prior year.   The increase
resulted  from a higher effective  interest rate in  borrowings resulting from
the issuance  of  fixed rate  debt in  May  1998, as  well as  higher  average
outstanding borrowings.

The Company's  effective income tax  rate is estimated  to be 39.0%  in fiscal
l999 as compared to 40.0% in fiscal 1998.

Results of Operations for the Thirteen Weeks Ended January 30, 1999
Compared with the Thirteen Weeks ended January 31, 1998

Revenues in the thirteen weeks ended January 30,  1999 increased $80.8 million
or 11.4%  over revenues  in the thirteen  weeks ended  January 31, 1998.   The
increase in revenues was primarily attributable to a comparable sales increase
of 6.4% at NM  Stores, the new  Neiman Marcus store in  Hawaii and sales  from
Chef's Catalog,  acquired in  January 1998.   Total  comparable sales  for the
Company  increased 5.3%.   Comparable  sales increased  6.4% at  Neiman Marcus
Stores, increased 3.0% at Bergdorf Goodman, and decreased 0.4% at NM Direct.

Cost  of goods  sold including buying  and occupancy costs  increased 12.5% to
$547.8 million in the thirteen week  period ended January 30, 1999 compared to
the  same period  last  year,  primarily due  to  increased  sales and  higher
markdowns.  As a percentage of revenues, cost of  goods sold was 69.4% in l999
compared to 68.8% in l998.  The increase in the 1999 quarter is  primarily due
to higher markdowns.

Selling, general and administrative expenses increased 16.2% to $181.1 million
in the 1999 period from $155.8 million in 1998,  primarily due to higher sales
volume and  higher sales promotion  expenses.   As a  percentage of  revenues,
selling, general and  administrative expenses were 22.9% in 1999  and 22.0% in
1998.  

                                       6<PAGE>



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

Interest expense increased 15.0% to $7.0 million in the 1999 period.  The
increase resulted from a higher effective rate on borrowings resulting from
the issuance of fixed rate debt in May 1998, as well as higher average
outstanding borrowings.

Changes in Financial Condition and Liquidity since August 1, 1998

During the twenty-six weeks  ended January 30, 1999, the Company  financed its
working capital  needs and capital  expenditures primarily with  cash provided
from operations and its  revolving credit facility.  The  following discussion
analyzes liquidity and capital resources by operating, investing and financing
activities as presented in the Company's Condensed Consolidated  Statements of
Cash Flows.

Net  cash provided  by  operating activities  was  $101.9 million  during  the
twenty-six  weeks ended January 30, 1999.  The primary items affecting working
capital were an increase in accounts receivable of $4.2 million, a decrease in
merchandise  inventories of $4.1 million  and an increase  in accounts payable
and accrued liabilities of $9.3 million.

Capital  expenditures were  $55.9  million during  the twenty-six  weeks ended
January 30,  1999 as compared to  $36.6 million for the same  period in fiscal
1998.  The Company purchased a building adjacent to its Neiman Marcus store on
Union Square  in San Francisco for a future expansion  of this store.  Capital
expenditures  also include existing  store renovations  and completion  of the
construction  of the  new Neiman Marcus  store in  Honolulu, Hawaii.   Capital
expenditures are expected to approximate $110.0 million during fiscal 1999.

In  November 1998,  the Company  acquired a  51 percent  interest in  Gurwitch
Bristow Products for  approximately $6.7 million in  cash.  In February  1999,
the Company acquired a 56 percent interest in Kate Spade LLC for approximately
$33.6  million in  cash.   Both  acquisitions  were funded  primarily  through
borrowings under the Company's revolving credit facility.

The Company  increased its bank  borrowings by  $60.0 million since  August 1,
1998.  At January 30, 1999, the Company had $555.0 million available under its
revolving  credit facility.    Additionally, the  Company repurchased  827,000
shares of its common stock during the twenty-six weeks ended  January 30, 1999
at  an average price of  $18.57 per share.  The  Company believes that it will
have sufficient resources  to fund  its planned capital  expenditures and  its
operating requirements.

Year 2000 Date Conversion

The Company has completed its assessment of its hardware and software systems,
including  the  embedded systems  in  the  Company's buildings,  property  and
equipment,  and its implementing  plans to ensure that  the operations of such
systems will not be adversely affected by the Year 2000 date change.

The  Company is presently in  the process of  renovating non-compliant systems
and implementing converted and  replaced systems for substantially all  of its
hardware and software systems.  The Company estimates that its efforts to make
these  systems  Year  2000  compliant  are  approximately  75%  complete, with
substantial completion of the Year 2000 project currently anticipated for July
1999.
 
                                      7<PAGE>



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

The Company has established an ongoing program to communicate with its
significant suppliers and vendors to determine the extent to which the
Company's  systems and operations are vulnerable to those third parties'
failure to rectify their own Year 2000 issues.  Based on responses to the
Company's inquiries, the Company has identified those suppliers and vendors
most at risk for failing to achieve Year 2000 compliance on a timely basis and
is monitoring their continuing progress.  The Company is not presently aware
of any significant exposure arising from potential third party failures. 
However, there can be no assurance that the systems of other companies on
which the Company's systems or operations rely will be timely converted or
that any failure of such parties to achieve Year 2000 compliance would not
have an adverse effect on the Company's result of operations. 

The Company has engaged both internal and external resources to assess,
reprogram, test and implement its systems for Year 2000 compliance.  Based on
management's current estimates, the costs of Year 2000 remediation, including
system renovation, 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, such
expenditures have not adversely affected the Company's ability to continue its
investment in new technology in connection with its ongoing systems
development plans.

Management presently believes the Company's most reasonably likely worst case
Year 2000 scenario could arise from a business interruption caused by
governmental agencies, utility companies, telecommunication service companies,
shipping companies or other service providers outside the Company's control. 
There can be no assurance that such providers will not suffer business
interruption caused by a Year 2000 issue.  Such an interruption could have a
material adverse effect on the Company's results of operations.

The Company is in the process of developing a contingency plan for continuing
operations in the event of Year 2000 failures, and the current target for
completing that plan is June 1999.

Forward-looking Statements

Statements in this report 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: change 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; failure of the Company or third parties
to be Year 2000 compliant; significant increases in paper, printing and
postage costs; and changes in the Company's relationship with designers and
other resources.





                                      8<PAGE>


                         THE NEIMAN MARCUS GROUP, INC.



Part II

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

          The Annual Meeting of Stockholders was held on January 15, 1999.
          The following matters were voted upon at the meeting:

          1.    Election of three Class II directors for terms of one year.

                Matina S. Horner            Brian J. Knez

                For         43,109,004      For        43,101,347
                Against         47,387      Against        55,044

                Walter J. Salmon

                For         43,118,438
                Against         37,953


          2.    Ratification of the appointment by the Board of Directors of
                Deloitte & Touche LLP as the Company's independent auditors
                for the 1999 fiscal year.

                For         43,122,522
                Against         17,325
                Abstain         16,543


          3.    Stockholder proposal concerning cumulative voting in the
                election of directors.

                For          4,170,378
                Against     35,989,688
                Abstain        101,951
                Non-voting   2,894,373



















                                      9<PAGE>
                                      

                         THE NEIMAN MARCUS GROUP, INC.





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 did not file any reports on Form 8-K during the
                thirteen week period ended January 30, 1999.





































                                      10<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        March 11, 1999
Officer:                    Chief Financial Officer



S/John R. Cook           
John R. Cook




Principal Accounting        Vice President and Controller    March 11, 1999
Officer:                                  



S/Catherine N. Janowski    
Catherine N. Janowski





                                 
                                          















                                      11<PAGE>