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                     October 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                            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 December  4,  1998, there  were  49,003,455 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 October 31, 1998,
             August 1, 1998 and November 1, 1997                              1

            Condensed Consolidated Statements of Earnings for the Thirteen
              Weeks ended October 31, 1998 and November 1, 1997               2

            Condensed Consolidated Statements of Cash Flows for the Thirteen
              Weeks Ended October 31, 1998 and November 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                                      6-7




Part II.    Other Information

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


Signatures                                                                    9 



Exhibit 27.1                                                                 10

                                       <PAGE>

[PAGE]
<TABLE>
                                     THE NEIMAN MARCUS GROUP, INC.
                                 CONDENSED CONSOLIDATED BALANCE SHEETS
                                              (UNAUDITED)


<CAPTION>
(In thousands)                                                                    
                                        October 31,       August 1,   November 1, 
                                               1998            1998          1997 
                                        -----------     -----------   -----------                           
Assets
<S>                                     <C>             <C>           <C>
Current assets:
  Cash and equivalents                  $    24,661     $    56,644   $    18,537 
  Undivided interests in NMG
    Credit Card Master Trust                180,504         138,867       177,268 
  Accounts receivable, net                   59,592          53,571        64,692 
  Merchandise inventories                   646,176         499,068       569,733 
  Deferred income taxes                      24,058          24,058        19,049 
  Other current assets                       53,733          61,188        47,531
                                        -----------     -----------   -----------

    Total current assets                    988,724         833,396       896,810 

Property and equipment, net                 494,974         479,256       457,952 

Other assets                                123,577         125,140        97,218
                                        -----------     -----------   -----------

    Total assets                        $ 1,607,275     $ 1,437,792   $ 1,451,980
                                        ===========     ===========   ===========

Liabilities and Shareholders' Equity
Current liabilities:
  Notes payable and current maturities
    of long-term liabilities            $     5,973     $     5,963   $    71,466 
  Accounts payable                          211,826         201,490       207,643 
  Accrued liabilities                       206,688         180,809       183,885
                                        -----------     -----------   -----------

    Total current liabilities               424,487         388,262       462,994 

Long-term liabilities:
  Notes and debentures                      409,622         284,617       300,000 
  Other long-term liabilities                69,477          71,083        69,735
                                        -----------     -----------   -----------
                                            479,099         355,700       369,735
                                        -----------     -----------   -----------
  
  Deferred income taxes                      37,139          37,139        31,902 

                            
Common stock                                    490             498           499 
Additional paid-in capital                  466,200         481,295       485,686 
Retained earnings                           199,860         174,898       101,164
                                        -----------     -----------   -----------


Total liabilities and shareholders'
  equity                                $ 1,607,275     $ 1,437,792   $ 1,451,980
                                        ===========     ===========   ===========
</TABLE>






   See Notes to Condensed Consolidated Financial Statements.

                                                   1<PAGE>
 

[PAGE]
<TABLE>

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

                                                                      
<CAPTION>
(In thousands except for                                    Thirteen Weeks Ended
per share data)                                           October 31,    November 1,
                                                                 1998           1997
                                                          -----------    -----------

<S>                                                       <C>            <C> 
Revenues                                                  $   587,113    $   580,499 
Cost of goods sold including buying and 
  occupancy costs                                             384,888        376,127 
Selling, general and administrative expenses                  151,886        141,183 
Corporate expenses                                              3,281          3,138
                                                          -----------    -----------

Operating earnings                                             47,058         60,051 

Interest expense                                               (6,136)        (5,729)
                                                          -----------    -----------

Earnings before income taxes                                   40,922         54,322 
Income taxes                                                  (15,960)       (21,729)
                                                          -----------    -----------

Net earnings                                              $    24,962    $    32,593
                                                          ===========    ===========


Weighted average number
  of common and common
  equivalent shares
  outstanding:

  Basic                                                         49,460        49,905
                                                          ============   ===========
  Diluted                                                       49,574        50,096
                                                          ============   ===========

Earnings per share:
 
  Basic                                                   $       .50    $       .65
                                                          ===========    ===========
  Diluted                                                 $       .50    $       .65
                                                          ===========    ===========

</TABLE>









   See Notes to Condensed Consolidated Financial Statements.

                                                2<PAGE>
 

[PAGE]
<TABLE>

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

                                                                      
<CAPTION>
(In thousands)                                               Thirteen Weeks Ended
                                                          -------------------------- 
                                                          October 31,    November 1, 
                                                                 1998           1997
                                                          -----------    -----------
CASH FLOWS FROM OPERATING ACTIVITIES
 <S>                                                      <C>            <C>     
 Net earnings                                             $    24,962    $    32,593 
 Adjustments to reconcile net earnings
    to net cash provided by operating activities:
      Depreciation and amortization                            16,136         15,747 
      Other items                                                 202          1,692 
      Changes in current assets and liabilities:
         Accounts receivable                                   (6,021)        (9,651)
         Merchandise inventories                             (147,108)      (109,321)
         Other current assets                                   7,455          6,808 
         Accounts payable and
           accrued liabilities                                 34,623         68,846
                                                          -----------     ----------
         
Net cash (used for) provided by operating 
  activities                                                  (69,751)         6,714 
                                                          -----------     ----------
CASH FLOWS FROM INVESTING ACTIVITIES
  Capital expenditures                                        (30,492)       (18,767)
  Purchases of held-to-maturity securities                   (160,652)      (164,817)
  Maturities of held-to-maturity securities                   119,015        115,890
                                                          -----------     ----------
                                                                      
Net cash used for investing activities                        (72,129)       (67,694)
                                                          -----------     ----------
CASH FLOWS FROM FINANCING ACTIVITIES
  Proceeds from borrowings                                    125,000         62,656 
  Repurchase of common stock                                  (15,356)           -   
  Other financing activities                                      253            -
                                                          -----------     ----------

Net cash provided by financing activities                     109,897         62,656
                                                          -----------     ----------

CASH AND EQUIVALENTS
  Increase (decrease) during the period                       (31,983)         1,676 
  Beginning balance                                            56,644         16,861
                                                           ----------     ----------
  Ending balance                                          $    24,661    $    18,537 
                                                          ===========    ===========
</TABLE>













See Notes to Condensed Consolidated Financial Statements.

                                       3 <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 included  in the  Company's Annual  Report on  Form
     10-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.
     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  $15.5 million at  October 31, 1998, $14.5  million at August
     1, 1998 and  $17.0 million at November  1, 1997.   The FIFO method  would
     have increased  net earnings by $.6  million and $1.2  million during the
     thirteen   weeks  ended   October  31,   1998  and   November  1,   1997,
     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  thirteen  weeks   ended  October  31,   1998,  the  Company
     repurchased 827,000  shares at an average price of  $18.57 per share.  At
     October 31,  1998  there  were    512,900  shares  remaining  under  this
     program.

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

     Options to purchase 430,850 and  438,350 shares of common stock were  not
     included in the computation of  diluted EPS for the thirteen  weeks ended
     October  31,  1998  and  November  1,  1997,  respectively,  because  the
     exercise  price  of those  options was  greater  than the  average market
     price of the common shares.

                                       4 <PAGE>


    [PAGE]

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

<TABLE>
4.   Earnings per share (continued)
     ------------------
<CAPTION>
     (In thousands of shares)                                 Thirteen Weeks Ended
                                                           --------------------------
                                                           October 31,    November 1,
                                                                  1998           1997
                                                           -----------    -----------
     <S>                                                        <C>            <C>
     Shares for computation  
       of basic EPS                                             49,460         49,905
     Effect of assumed
       option exercises                                            114            191
                                                           -----------    -----------
     Shares for computation
       of diluted EPS                                           49,574         50,096
                                                           ===========    ===========

</TABLE>











































                                       5 <PAGE>
 


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

Results of  Operations for the Thirteen Weeks  Ended October 31, 1998 Compared
------------------------------------------------------------------------------
with the Thirteen Weeks Ended November 1, 1997
----------------------------------------------

Revenues in the thirteen  weeks ended October 31, 1998 increased  $6.6 million
or 1.1%  over revenues  in the  thirteen weeks  ended November  1, 1997.   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.   Total
comparable sales for the  Company decreased 2.3%.  Comparable  sales decreased
1.7% at Neiman Marcus Stores, 7.4% at Bergdorf Goodman and 1.1% at NM Direct. 

Cost of goods sold including buying and occupancy costs increased $8.8 million
or 2.3% to $384.9 million compared to the same period last year, primarily due
to increased sales.  As a percentage of revenues, cost of goods sold increased
to  65.6%  from 64.8%  in  the  prior year,  due  primarily  to lower  overall
comparable sales and, to a  lesser extent, to lower margins on sales by Chef's
Catalog, acquired in January 1998, and higher markdowns at Bergdorf Goodman.

Selling, general and administrative expenses increased 7.5% to  $151.8 million
from $141.2  million in 1997.   As a percentage of  revenues, selling, general
and administrative expenses  increased to 25.9% from 24.3% in  the prior year.
The increase is primarily attributable to lower overall comparable sales, pre-
opening costs incurred in the  period and, to a lesser extent,  higher selling
and sales promotion expenses. 

Interest expense  increased 7.1% to $6.1  million in the thirteen  weeks ended
October 31, 1998 from $5.7  million in the prior year.   The increase resulted
from  a  higher  effective interest  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 thirteen  weeks ended October  31, 1998, the  Company financed  its
working  capital needs and capital  expenditures primarily with  cash from 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  used for  operating activities was  $69.8 million  during the  first
thirteen weeks  of fiscal 1999.   The primary items  affecting working capital
were  increases in   merchandise  inventories of  $147.1 million  and accounts
payable and accrued  liabilities of $34.6 million.  The  seasonal increases in
inventories and accounts  payable are  primarily due to  the upcoming  holiday
selling season.

Capital  expenditures were $30.5 million during the thirteen week period ended
October 31, 1998 as compared to $18.8  million in the prior year period.   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 $120.0 million during fiscal 1999.

The  Company increased its  bank borrowings by $125.0  million since August 1,
1998.  At October 31,  1998 the Company  had $490 million  available under its
revolving  credit  facility.   Additionally  the  Company repurchased  827,000
shares of its common stock during the thirteen weeks ended October 31, 1998 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.

                                       6 <PAGE>
 


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

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 is  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
February 1999.

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 response  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 results 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 December 1998.

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: 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; 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 relationships with  designers and
other resources.

                                      7 <PAGE>
 


                                    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 October 31, 1998.













































                                      8 <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      December 11, 1998
Officer:                   Chief Financial Officer



/s/ John R. Cook

           


Principal Accounting       Vice President and Controller  December 11, 1998
Officer:



/s/ Catherine N. Janowski
Catherine N. Janowski
                             























                                        9 <PAGE>