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 31, 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 March 6, 1998, there were 49,758,981 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
               January 31, 1998, August 2, 1997 and
               February 1, 1997                                     1

               Condensed Consolidated Statements of Earnings
               For the Twenty-Six and Thirteen Weeks ended
               January 31, 1998 and February 1, 1997                2

               Condensed Consolidated Statements of Cash
               Flows for the Twenty-Six Weeks ended 
               January 31, 1998 and February 1, 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 4.        Submission of Matters to a Vote of Security Holders  9

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



Signatures

Exhibit 3.1(a)



Exhibit 27.l

                                       <PAGE>

[Page]
<TABLE>


                                      THE NEIMAN MARCUS GROUP, INC.
                                 CONDENSED CONSOLIDATED BALANCE SHEETS
<CAPTION>
                                                 (Unaudited)                   (Unaudited)
                                                 January 31,      August 2,    February 1,
   (In thousands)                                      1998            1997           1997
                                                 -----------   ------------   ------------

   <S>                                           <C>           <C>            <C>
   Assets
   Current assets:
     Cash and equivalents                         $   22,916   $    16,861    $    23,780 
     Undivided interests in NMG
     Credit Card Master Trust                        200,159       128,341        180,428
     Accounts receivable, net                         59,389        55,041         58,097 
     Merchandise inventories                         444,355       460,412        415,927 
     Deferred income taxes                            19,049        19,049         21,666 
     Other current assets                             70,885        54,339         53,511 
                                                     -------       -------        -------
       Total current assets                          816,753       734,043        753,409
                                                     -------      --------        ------- 
   Property and equipment, net                       461,884       454,133        452,317

   Intangibles and other assets                      124,691        99,684        103,355 
                                                     -------      --------        ------- 

       Total assets                              $ 1,403,328   $ 1,287,860    $ 1,309,081 
                                                 ===========   ===========    =========== 

   Liabilities and Shareholders' Equity
   Current liabilities:
     Notes payable and current
        maturities of long-term
        liabilities                              $     5,874   $     8,810    $     8,807 
     Accounts payable                                180,060       174,952        151,814 
     Accrued liabilities                             173,256       147,730        155,685 
                                                     -------      --------        ------- 
    
       Total current liabilities                     359,190       331,492        316,306 
                                                     -------      --------        ------- 
   Long-term liabilities:
     Revolving credit agreement                      325,000       300,000        370,000 
     Other long-term liabilities                      70,946        69,738         69,476 
                                                     -------      --------        ------- 

       Total long-term liabilities                   395,946       369,738        439,476 
                                                     -------      --------        ------- 

   Deferred income taxes                              31,902        31,902         33,329 

   Common stock                                          498           499            499 
   Additional paid-in capital                        481,098       485,658        485,631 
   Retained earnings                                 134,694        68,571         33,840 
                                                     -------      --------        ------- 

       Total liabilities and
         shareholders' equity                    $ 1,403,328   $ 1,287,860    $ 1,309,081 
                                                 ===========   ===========     ===========
</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 for       Twenty-Six Weeks Ended           Thirteen Weeks Ended    
 per share amounts)         -----------------------------    -------------------------
                            January 31,       February 1,    January 31,   February 1, 
                                   1998              1997           1998          1997 
                            -----------       -----------    -----------   ----------- 
<S>                          <C>               <C>            <C>           <C>
Revenues                     $1,288,886        $1,206,050     $  708,387    $  661,947 
 
Cost of goods sold
  including buying and
  occupancy costs               863,160           811,200        487,033       460,621 
Selling, general and
  administrative expenses       297,010           277,910        155,827       146,856 
Corporate expenses                6,695             6,796          3,557         3,551 
                             ----------        ----------     ----------    ---------- 
Operating earnings              122,021           110,144         61,970        50,919 

Interest expense                 11,816            14,353          6,087         7,505 
                             ----------        ----------     ----------    ---------- 
Earnings before
  income taxes                  110,205            95,791         55,883        43,414 
Income taxes                     44,082            39,274         22,353        17,800 

Net earnings                     66,123            56,517         33,530        25,614 

Dividends and accretion
  on redeemable
  preferred stocks                 -               (6,201)          -             -    
Loss on redemption
  of redeemable
  preferred stocks                 -              (22,361)          -             -    
                             ----------        ----------     ----------    ---------- 
Net earnings applicable
  to common shareholders     $   66,123        $   27,955     $   33,530    $   25,614 
                             ==========        ==========     ==========    ========== 
Weighted average number
  of common and common
  equivalent shares
  outstanding

    Basic                        49,833            44,452         49,809        49,490 
                             ==========        ==========     ==========     ========= 
    Diluted                      49,995            44,627         49,963        49,653 
                             ==========        ==========     ==========     ========= 
   
Amounts per share
  applicable to common
  shareholders:                        

    Basic                    $     1.33         $     .63      $     .67     $     .52 
                             ==========        ==========     ==========     ========= 
    Diluted                  $     1.32         $     .63      $     .67     $     .52 
                             ==========        ==========     ==========     ========= 
</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)                                                Twenty-Six Weeks Ended  
                                                             --------------------------
                                                             January 31,    February 1,
                                                                    1998           1997
                                                             -----------    -----------
<S>                                                            <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net earnings                                                 $  66,123      $  56,517 
  Adjustments to reconcile net earnings
  to net cash provided by operating activities:   
      Depreciation and amortization                               31,404         30,425 
      Other items                                                  3,411           (284)
      Changes in current assets and liabilities:
         Accounts receivable                                      (3,387)        (7,047)
         Merchandise inventories                                  21,707         28,021 
         Other current assets                                    (13,682)        (8,143)
         Accounts payable and
           accrued liabilities                                    19,632        (32,494)
                                                                --------       -------- 

Net cash provided by 
  operating activities                                           125,208         66,995 
                                                                --------       -------- 
 
CASH FLOWS FROM INVESTING ACTIVITIES
  Capital expenditures                                           (36,641)       (23,279)
  Acquisition of Chef's Catalog                                  (31,000)          -    
  Purchases of held-to-maturity securities                      (272,094)      (342,971)
  Maturities of held-to-maturity securities                      200,276        276,935 
                                                                --------       -------- 

Net cash used by                                                        
  investing activities                                          (139,459)       (89,315)
                                                                --------       -------- 
 

CASH FLOWS FROM FINANCING ACTIVITIES
  Proceeds from borrowings                                        25,000        183,500 
  Repayment of debt                                                 -          (132,000)
  Issuance (repurchase) of common stock                           (4,694)       269,163 
  Payment on redemption of preferred stocks                         -          (281,426)
  Dividends paid                                                    -            (5,796)
                                                                --------       -------- 

   
Net cash provided by financing activities                         20,306         33,441 
                                                                --------       -------- 
  

CASH AND EQUIVALENTS
  Increase during the period                                       6,055         11,121
  Beginning balance                                               16,861         12,659 
                                                                --------       -------- 
  Ending balance                                                $ 22,916       $ 23,780 
                                                                ========       ======== 
</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 twenty-six week periods ended February 1,
      1997, basic and diluted earnings per share available to common
      shareholders for those periods would have been $.51 and $1.13,
      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 $19.0 million at January 31, 1998, $15.0 million at August
      2, 1997 and $17.5 million at February 1, 1997.  The FIFO method would
      have increased net earnings by $2.4 million during the twenty-six weeks
      ended January 31, 1998 and $2.3 million during the twenty-six weeks
      ended February 1, 1997.

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 will be 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 January 31,
      1998, borrowings of $325 million were outstanding at an interest rate of
      5.8% 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 twenty-six weeks ended January 31, 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
      follows:

                                   
<TABLE>
<CAPTION>
                           Twenty-Six Weeks Ended       Thirteen Weeks Ended
                          -------------------------  -------------------------
      (in thousands       January 31,  February 1,   January 31,  February 1,
       of shares)                1998         1997          1998         1997
                          -----------  -----------   -----------  -----------
      <S>                       <C>         <C>           <C>          <C>
      Shares for computation 
      of basic EPS              49,833      44,452        49,809       49,490
      Effect of assumed                                       
      option exercises             162         175           154          163
                                ------      ------        ------       ------
      Shares for computation
      of diluted EPS            49,995      44,627        49,963       49,653

</TABLE>

      No adjustments to net earnings applicable to common shareholders were
      made for the computations of basic and diluted EPS during the periods
      presented.  Options to purchase 118,050 shares of common stock were not
      included in the computation of diluted EPS because the exercise price of
      those options was greater than the average market price of the common
      shares.

                                        <PAGE>
 

[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 31, 1998
Compared with the Twenty-six Weeks Ended February 1, 1997


Revenues in the twenty-six weeks ended January 31, 1998 increased $82.8
million or 6.9% over revenues in the twenty-six weeks ended February 1, 1997.
Neiman Marcus Stores and Bergdorf Goodman revenues rose, reflecting comparable
sales increases of 7.2% and 9.9%, respectively, in the first half of 1998.
Revenues  at NM Direct increased slightly, due primarily to sales from Chef's
Catalog, a direct-marketer of gourmet cookware and high-end kitchenware, which
was acquired at the beginning of January 1998.

Cost of goods sold, including buying and occupancy costs, increased $52.0
million or 6.4% compared to the same period last year.  As a percentage of
revenues, cost of goods sold, including buying and occupancy costs, decreased
to 67.0% in the first half of fiscal 1998 compared to 67.3% in the first half
of fiscal 1997.  Margins improved in fiscal 1998 due principally to
proportionately lower buying and occupancy costs.

Selling, general and administrative expenses increased 6.9% to $297.0 million
from $277.9 million in the first half of fiscal 1997 primarily due to higher
sales volume.  As a percentage of revenues, selling, general and
administrative expenses were unchanged at 23.0% in the first half of both
fiscal 1998 and 1997.

Interest expense decreased 17.7% to $11.8 million in the fiscal 1998 period.
The decrease resulted from lower average outstanding borrowings as well as
from a lower effective interest rate on such borrowings.  In fiscal 1997 the
Company repaid its fixed rate senior notes upon maturity with borrowings under
its revolving credit agreement.

Results of Operations for the Thirteen Weeks Ended January 31, 1998 Compared
with the Thirteen Weeks Ended February 1, 1997

Revenues in the thirteen weeks ended January 31, 1998 increased $46.4 million
or 7.0% over revenues in the thirteen weeks ended February 1, 1997.  The
increase in revenues reflected an overall comparable sales increase of 6.3%.
Each of the Company's operating units reported higher comparable revenues.
Revenues for Chef's Catalog were included for the month of January 1998.

Cost of goods sold, including buying and occupancy costs, increased $26.4
million or 5.7% during the quarter ended January 31, 1998 compared to the same
period in fiscal 1997.  As a percentage of revenues, cost of goods sold,
including buying and occupancy costs, was 68.8% in the fiscal 1998 quarter
compared to 69.6% in the same period in fiscal 1997.  The improved margins in
the fiscal 1998 quarter were principally due to a lower  markdown rate.     

Selling, general and administrative expenses increased by $9.0 million or 6.1%
to $155.8 million in the thirteen weeks ended January 31, 1998 compared to the
thirteen weeks ended February 1, 1997, primarily due to higher selling costs
associated with increased revenues during the period.  As a percentage of
revenues, selling, general and administrative expenses decreased to 22.0% in
the fiscal 1998 quarter compared to 22.2% in the 1997 quarter.

                                       <PAGE>

[Page]




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


Interest expense decreased 18.9% to $6.1 million in the thirteen weeks ended
January 31, 1998 compared to the 1997 quarter.  The decrease resulted from
lower average outstanding borrowings as well as a lower effective interest
rate on borrowings.  In fiscal 1997, the Company repaid its fixed rate senior
notes upon maturity with borrowings under its revolving credit agreement.

Changes in Financial Condition and Liquidity since August 2, 1997

During the first six months of fiscal 1998, the Company financed its working
capital needs, capital expenditures and the acquisition of Chef's Catalog
primarily with cash borrowings under its revolving credit agreement and cash
generated from operations.  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 $125.2 million during the
twenty-six weeks ended January 31, 1998 as compared to $67.0 million in the
first half of fiscal 1997.  The primary items affecting working capital since
August 2, 1997 were an increase in accounts payable and accrued liabilities
($19.6 million), partially offset by a seasonal decrease in merchandise
inventories ($21.7 million).

Capital expenditures were $36.6 million during the first half of fiscal 1998
as compared to $23.3 million in the first half of fiscal 1997.  The Company's
capital expenditures consisted principally of the construction of a new Neiman
Marcus store in Honolulu's Ala Moana Center, expected to open in September,
1998, and existing store renovations.  Capital expenditures are expected to
approximate $100.0 million during fiscal 1998.  

In January 1998, the Company acquired Chef's Catalog, for approximately $31
million in cash.  The acquisition was funded primarily through borrowings
under the Company's revolving credit agreement.

The Company increased its bank borrowings by $25.0 million since August 2,
1997.  At January 31, 1998, the company had $325.0 million available under
its new 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 date on its computer
systems and is implementing plans to ensure its systems and applications will
process in the year 2000 and beyond.  The Company is engaging both internal
and external resources to reprogram and test its systems for the year 2000
compliance.  The Company currently anticipates substantially completing the
year 2000 project in 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.

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.  There can be no guarantee that the systems of other companies on which
the Company's systems rely will be timely converted and would have not adverse
effect on the Company's systems.

                                       <PAGE>
[Page]




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

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

          The Annual Meeting of Stockholders was held on January 16, 1998. 
          The following matters were voted upon at the meeting:

      1.  Election of two Class I directors for terms of three years.

          Richard A. Smith:         Robert A. Smith:

          For          47,313,510   For     47,315,491
          Against          75,408   Against     73,427
    
          Election of Brian J. Knez as a Class II Director for a term of
          one year.

          For          47,312,415
          Against          76,503

          Election of John R. Cook as a Class III Director for a term of
          two years.

          For          47,315,195
          Against          73,723   
 
      2.  Approval of changes in authorized stock and certain conforming
          amendments.

          For          47,078,423
          Against         147,042
          Abstain          41,603
          Non-voting      121,851

      3.  Approval of other amendments to the Restated Certificate of
          Incorporation.

          For          47,197,787
          Against          27,495
          Abstain          41,785
          Non-voting      121,851

      4.  Ratification of the appointment by the Board of Directors of         
          Deloitte & Touche LLP as the Company's independent auditors for the  
          1998 fiscal year.

          For         47,343,946
          Against         18,543         
          Abstain         26,429

      5.  Stockholder proposal to increase disclosure on compensation of
          executive officers.

          For             731,965
          Against      43,466,292
          Abstain       1,220,360
          Non-voting    1,970,301

                                       <PAGE>
[Page]




                         THE NEIMAN MARCUS GROUP, INC



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

      (a)         Exhibits.

      3.1(a)      Restated Certificate of Incorporation.


      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 31, 1998.

                                       <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        March 13, 1998
Officer:                  Chief Financial Officer



/s/ John R. Cook                     
John R. Cook



Principal Accounting      Vice President and Controller    March 13, 1998
Officer:



/s/ Catherine N. Janowski                     
Catherine N. Janowski




                             <PAGE>