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 27, 1996                 
       
      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 07, 1996, there were outstanding 38,003,487 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 27, 1996,
              July 29, 1995 and January 28, 1995                            1
    
            Condensed Consolidated Statements of Earnings for the
              Twenty-Six and Thirteen Weeks ended January 27, 1996 and
              January 28, 1995                                                 
                                                                            2

            Condensed Consolidated Statements of Cash Flows for the
              Twenty-Six Weeks ended January 27, 1996 and January 28, 1995     
                                                                            3

            Notes to Condensed Consolidated Financial Statements               
                                                                            4

  Item 2.   Management's Discussion and Analysis of Financial Condition
              and Results of Operations                                        
                                                                           5-6




Part II.    Other Information

  Item 4.   Submission of Matters to a Vote of Security Holders                
                                                                            7

  Item 6.   Exhibits and Reports on Form 8-K                                   
                                                                            7



Signatures                                                                     
                                                                            8



Exhibit 11.1                                                                   
                                                                            9


Exhibit 27.1                                                                   
                                                                           10

[Page]
<PAGE>
<TABLE>

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

                                        January 27,        July 29,    January 28,
(In thousands)                                 1996            1995          1995 

Assets
<S>                                      <C>            <C>           <C>
Current assets:
  Cash and equivalents                   $   38,239     $   13,695    $    24,681 
  Accounts receivable, net                  224,014        150,110        448,935 
  Merchandise inventories                   348,733        359,092        314,679 
  Deferred income taxes                      17,102         17,102         24,317 
  Other current assets                       47,959         38,410         48,994 
    Total current assets                    676,047        578,409        861,606 

Property and equipment, net                 451,974        423,583        424,306 

Intangibles and other assets                105,340        106,445        109,025 

    Total assets                         $1,233,361     $1,108,437    $ 1,394,937 
 

Liabilities and Shareholders' Equity
Current liabilities:
  Notes payable and current maturities
    of long-term liabilities             $  193,167     $   51,859    $   159,815 
  Accounts payable                          148,549        170,672        161,560 
  Accrued liabilities                       155,714        152,049        167,213 

    Total current liabilities               497,430        374,580        488,588 

Long-term liabilities:
  Notes and debentures                      170,000        202,000        358,667 
  Other long-term liabilities                68,031         69,056         73,659 

    Total long-term liabilities             238,031        271,056        432,326 


Deferred income taxes                        30,812         30,812         37,768 

Redeemable preferred stocks                 406,434        405,442        404,456 

Common stock                                    380            380            380 
Additional paid-in capital                   83,151         82,366         82,346 
Accumulated deficit                         (22,877)       (56,199)       (50,927)

    Total liabilities and shareholders'
      equity                             $1,233,361     $1,108,437    $ 1,394,937 





        See Notes to Condensed Consolidated Financial Statements.
</TABLE>
[Page 1]
                                                   1<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 27,     January 28,     January 27,   January 28, 
                                       1996            1995            1996          1995 

<S>                              <C>             <C>             <C>           <C>
Revenues                         $1,115,322      $1,051,858      $  625,424    $  589,536 
     
Cost of goods sold, including               
  buying and occupancy costs        757,025         702,696         438,942       405,336 
Selling, general and
  administrative expenses           256,562         243,262         137,694       127,947 
Corporate expenses                    6,335           5,997           3,403         2,937 

Operating earnings                   95,400          99,903          45,385        53,316 
Interest expense                    (14,257)        (19,506)         (7,425)      (10,190)

Earnings from continuing
  operations before
  income taxes                       81,143          80,397          37,960        43,126 
Income taxes                        (33,269)        (33,766)        (15,132)      (18,112)

Earnings from continuing 
  operations                         47,874          46,631          22,828        25,014 
Earnings (loss) from
  discontinued operations, net           -             (306)             -          1,498 

Net earnings                         47,874          46,325          22,828        26,512 
Dividends and accretion on
  redeemable preferred stocks       (14,552)        (14,546)         (7,276)       (7,276)

Net earnings applicable
  to common shareholders         $   33,322      $   31,779      $   15,552    $   19,236 

Weighted average number of
  common and common equiva-
  lent shares outstanding            38,163          37,991          38,238        37,989 
   
Amounts per share
  applicable to common
  shareholders:                          
Earnings from continuing
  operations                     $      .87      $      .85      $      .41    $      .47 
Earnings (loss) from
  discontinued operations                 -            (.01)              -           .04 
  Net earnings                   $      .87      $      .84      $      .41    $      .51 

  Dividends paid                 $       -       $      .10      $        -    $      .05 



        See Notes to Condensed Consolidated Financial Statements.
</TABLE>
[Page 2]                                        2<PAGE>


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

<CAPTION>
   (In thousands)                                              Twenty-Six Weeks Ended   
                                                             January 27,    January 28,
                                                                    1996           1995 
   CASH FLOWS FROM OPERATING ACTIVITIES
   <S>                                                       <C>            <C>    
     Net earnings                                            $    47,874    $    46,325 
     Adjustments to reconcile net earnings
       to net cash provided (used) by operations:
         Depreciation and amortization                            26,844         29,996 
         Other items                                                 727            445 
         Changes in current assets and liabilities:
            Accounts receivable                                  (73,904)       (86,699)
            Merchandise inventories                               10,359         30,466 
            Other current assets                                  (9,549)         2,747 
            Accounts payable and accrued liabilities             (18,458)        10,867 
                    

   Net cash provided (used) by operating activities              (16,107)        34,147 
    

   CASH FLOWS USED BY INVESTING ACTIVITIES
     Capital expenditures                                        (52,986)       (41,109)
    

   CASH FLOWS FROM FINANCING ACTIVITIES
     Borrowings of debt                                          107,900         43,000 
     Repayment of debt                                              (731)       (10,701)
     Common stock issued                                              28             92 
     Dividends paid                                              (13,560)       (17,348)
      
   Net cash provided by financing activities                      93,637         15,043 
     

   CASH AND EQUIVALENTS
     Increase during the period                                   24,544          8,081 
     Beginning balance                                            13,695         16,600 
     Ending balance                                          $    38,239    $    24,681 
    











        See Notes to Condensed Consolidated Financial Statements.
</TABLE>
[Page 3]                                        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 historically the results of operations
    for these periods have not been indicative of the results for a full year.
    Fiscal 1996 will have 53 weeks, while  fiscal 1995 had 52 weeks.  The 53rd
    week will be included in the 1996 fourth quarter operating results.

    The  discontinued  operations  in  the  accompanying financial  statements
    represent the Contempo Casuals subsidiary, which the Company sold in  June
    1995.

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 $18.2 million at January  27, 1996, $14.2 million at July 29,  1995 and
    $30.9 million at January  28, 1995.  The FIFO method would  have increased
    net earnings by $2.4 million during the twenty-six weeks ended January 27,
    1996 and $3.6 million during the twenty-six weeks ended January 28, 1995.

3.  Discontinued operations

    On June 30 1995,  the Company sold its Contempo Casuals subsidiary  to The
    Wet Seal,  Inc. (Wet  Seal) for approximately 250,000  shares of  Wet Seal
    Class A common stock and $100,000 in cash.  The earnings from discontinued
    operations recorded in the thirteen week period ended January 28, 1995 are
    net  of  applicable  income  taxes   of  $1.1  million.    The  loss  from
    discontinued  operations  recorded in  the  twenty-six  week  period ended
    January 28, 1995 is net of applicable income tax benefits of $0.2 million.
    Revenues  related  to discontinued  Contempo  Casuals  operations  for the
    thirteen and  twenty-six week  periods ended January 28,  1995 were  $69.1
    million and $126.4 million, respectively.







[Page 4]                                4<PAGE>





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

             Results of Continuing Operations for the Twenty-six Weeks
                              Ended January 27,1996
           Compared with the Twenty-six Weeks Ended January 28, 1995


Revenues  in the  twenty-six  weeks ended  January  27, 1996  increased  $63.5
million or 6.0% over revenues in  the twenty-six weeks ended January 28, 1995.
A 3.8% comparable sales increase and the  opening of a new Neiman Marcus store
in Short Hills, New Jersey in August 1995 contributed to the improvement.

Cost  of goods  sold, including  buying and  occupancy costs,  increased $54.3
million or  7.7% compared  to the  same period last  year.   The increase  was
primarily due to the  higher sales volume.  As a  percentage of revenues, cost
of goods sold, including buying and occupancy costs, increased to 67.9% in the
first  half of fiscal 1996 compared to 66.8% in the first half of fiscal 1995.
The  higher  percentage was  principally due  to  higher markdowns  during the
holiday season.

Selling, general and administrative expenses increased 5.5% to  $256.6 million
from $243.3  million in 1995 primarily due to both higher sales volume related
costs and lower finance charge income for the six month period.  The Company s
securitization of its credit  card receivables, which was completed  in March,
1995,  reduced finance  charge income  by approximately  $9.6 million  for the
twenty  six  weeks ended  January  27, 1996.    As a  percentage  of revenues,
selling,  general and  administrative expenses  were essentially  unchanged at
23.0% in 1996 compared to 23.1% in 1995.

Interest expense decreased  26.9% to $14.3 million  in the 1996 period  mainly
due to the use of the securitization proceeds to pay down outstanding debt.

The Company's  effective income tax rate is expected  to be 41% in fiscal 1996
compared to 42% in fiscal 1995.



Results of Continuing Operations for the Thirteen Weeks Ended January 27, 1996
            Compared with the Thirteen Weeks Ended January 28, 1995

Revenues in the thirteen weeks ended January  27, 1996 increased $35.9 million
or 6.1% over  revenues in the thirteen weeks  ended January 28, 1995.   A 3.8%
comparable  sales increase, in  addition to the  opening of the  Neiman Marcus
store in Short Hills, New Jersey, contributed to the improvement. 

Cost  of goods  sold, including  buying and  occupancy costs,  increased $33.6
million or 8.3% during the quarter ended January 27, 1996 compared to the same
period in  1995.  As a  percentage of revenues, cost of  goods sold, including
buying and occupancy  costs, was 70.2% in 1996 compared to 68.8% in 1995.  The
increase in the  1996 quarter was principally  due to higher  markdowns during
the holiday season.


[Page 5]                               5<PAGE>


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


Selling, general and administrative expenses increased by $9.7 million or 7.6%
to $137.7 million in the thirteen weeks ended January 27, 1996 compared to the
thirteen weeks  ended  January 28,  1995 primarily  due to  both higher  sales
volume  related  costs and  lower  finance charge  income.   The  reduction in
finance  charge  income resulting  from  the securitization  of  the Company s
credit card receivables  was $4.8 million for the thirteen week  period.  As a
percentage of revenues, selling, general  and administrative expenses were  up
slightly  to 22.0% in the 1996  quarter compared to 21.7%  in the 1995 quarter
due to the decrease in finance charge income.

Interest expense decreased 27.1% to  $7.4 million in the thirteen  weeks ended
January  27,  1996  compared  to  the  1995  quarter,  primarily  due  to  the
securitization of the Company s credit card receivables.

       Changes in Financial Condition and Liquidity since July 29, 1995

During  the first six months of fiscal  1996, the Company financed its working
capital  needs,  capital  expenditures  and  preferred  dividend  requirements
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 used in operating activities  was $16.1 million during the twenty-six
weeks  ended January 27,  1996.  The  primary items  affecting working capital
were  a  seasonal   increase  in accounts  receivable  ($73.9  million) and  a
decrease  in  accounts  payable   and  accrued  liabilities  ($18.5  million),
partially  offset by  a seasonal  decrease in  merchandise inventories  ($10.4
million).

Capital  expenditures were $53.0 million during  the first half of fiscal 1996
as compared to $41.1 million  in the first half of fiscal 1995.  The Company s
capital expenditures consisted principally of construction of new stores and a
new distribution  center.  The  Company opened  a new Neiman  Marcus store  in
Short Hills, New  Jersey in August 1995, and a new Neiman Marcus store in King
of Prussia, Pennsylvania in February 1996.   The Company expects to open a new
Neiman  Marcus store in Paramus, New Jersey by  the fall of 1996.  The Company
completed  the  construction of  a national  distribution center  in Longview,
Texas  during the  second quarter  of fiscal  1996.  Capital  expenditures are
expected to approximate $100.0 million during the current fiscal year.

The Company  increased its bank  borrowings by $107.9  million since  July 29,
1995.  At January 27, 1996, the Company had $330.0 million available under its
revolving credit facility.  That  availability will be sufficient to  fund the
Company s   planned   capital  growth,   operating   and   preferred  dividend
requirements, as  well as  the retirement  of the  Company s senior  notes, of
which $40.0 million become due in May 1996, $52.0 million become due in August
1996 and $80.0 million become due in December 1996.

The  Company  paid  aggregate quarterly  dividends  of  $13.6  million on  its
Preferred Stocks  in the first half  of fiscal 1996  and $17.3 million  on its
Common and Preferred Stocks during  the first half of fiscal 1995.   Beginning
with the  third quarter of  fiscal 1995, the Company  eliminated its quarterly
cash dividend  on its Common  Stock (previously  $.05 per share  per quarter).
Elimination  of this  dividend conserves  approximately $7.6  million of  cash
annually.

[Page 6]                                6<PAGE>


                                    PART II


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

          The Annual  Meeting of  Stockholders was held on  January 19,  1996.
          The following matters were voted upon at the meeting:

          1.    Election of Walter J. Salmon as a Class II Director for a term
                of three years.

                For             46,328,845
                Withheld            89,946

                Election of Matina S. Horner, Ph.D. as a Class II Director for
                a term of three years.

                For             46,327,363
                Withheld            91,428

          2.    Ratification of the appointment  by the Board of  Directors of
                Deloitte &  Touche LLP  as the  Company's independent auditors
                for the 1996 fiscal year.

                For             46,344,154
                Against             28,236
                Abstain             46,402

          3.    Stockholder  proposal to  elect all  directors of  the Company
                annually.

                For              3,780,013
                Against         39,983,488
                Abstain            981,706
                Non-voting       1,673,585


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

          (a)   Exhibits.

          11.1  Computation of  weighted average number of  shares outstanding
                used  in determining  primary and  fully diluted  earnings per
                share.

          27.1  Financial data schedule.

          (b)   Reports on Form 8-K.

                The Company did  not file any reports  on Form 8-K during  the
                quarter ended January 27, 1996.

[Page 7]                                7<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 07, l996
Officer:                          Chief Financial Officer



s/John R. Cook       
John R. Cook




Principal Accounting              Vice President and            March 07, l996
Officer:                          Controller



s/Stephen C. Richards
Stephen C. Richards




                                 












[Page 8]                                8<PAGE>