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


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



For the Quarter Ended                       May 3, 1997                        

Commission File Number                        1-9659                           


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



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



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




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


Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.


            YES   X           NO       




As of June 10, 1997, there were outstanding 49,873,074 shares of the issuer's
common stock, $.01 par 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
              May 3, 1997, August 3, 1996 and April 27, 1996            1
    
            Condensed Consolidated Statements of Earnings
              for the Thirty-Nine and Thirteen Weeks Ended
              May 3, 1997 and April 27, 1996                            2

            Condensed Consolidated Statements of Cash Flows
              for the Thirty-Nine Weeks Ended May 3, 1997
              and April 27, 1996                                        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 10.1                                                            -


Exhibit 11.1                                                            10


Exhibit 27.1                                                            11

                                        <PAGE>
 

<TABLE>


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


<CAPTION>
                                             May 3,     August 3,   April 27,
(In thousands)                                 1997          1996       1996 
Assets
<S>                                     <C>           <C>         <C>
Current assets:
  Cash and equivalents                  $   21,122    $   12,659  $   10,832 
  Undivided interests in 
    NMG Credit Card Master Trust           151,055       114,392     143,304 
  Accounts receivable, net                  60,438        51,050      57,169 
  Merchandise inventories                  490,062       443,948     421,803 
  Deferred income taxes                     21,666        21,666      17,102 
  Other current assets                      40,812        45,368      41,195 

    Total current assets                   785,155       689,083     691,405 

Property and equipment, net                451,104       457,625     455,939 

Intangibles and other assets               100,171       105,642     105,660

    Total assets                        $1,336,430    $1,252,350  $1,253,004 

Liabilities and Shareholders' Equity
Current liabilities:
  Notes payable and current maturities
    of long-term liabilities            $    8,797    $   35,576   $  31,460 
  Accounts payable                         164,484       192,146     174,314 
  Accrued liabilities                      159,838       146,326     152,264 

    Total current liabilities              333,119       374,048     358,038 

Long-term liabilities:
  Notes and debentures                     360,000       292,000     317,000 
  Other long-term liabilities               69,268        69,940      68,026 

    Total long-term liabilities            429,268       361,940     385,026 

Commitments and contingencies

Deferred income taxes                       33,329        33,329      30,812 

Redeemable preferred stocks                     -        407,426     406,930 

Common stock                                   499           380         380 
Additional paid-in capital                 485,656        83,106      83,174 
Retained earnings (accumulated
  deficit)                                  54,559        (7,879)    (11,356)

    Total liabilities and shareholders'
      equity                            $1,336,430    $1,252,350  $1,253,004

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

<TABLE>

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

<CAPTION>
(In thousands except            Thirty-Nine Weeks Ended  Thirteen Weeks Ended 
 for per share amounts)              May 3,   April 27,      May 3, April 27, 
                                       1997        1996        1997      1996 

<S>                              <C>         <C>          <C>       <C>
Revenues                         $1,712,582  $1,589,381   $ 506,532 $ 474,059 
Cost of goods sold including
  buying and occupancy costs      1,155,034   1,077,796     343,834   320,771 
Selling, general and
  administrative expenses           396,270     367,990     118,360   111,428 
Corporate expenses                    9,933       9,449       3,137     3,114 

Operating earnings                  151,345     134,146      41,201    38,746 

Interest expense                    (20,439)    (21,144)     (6,086)   (6,887)

Earnings before income taxes        130,906     113,002      35,115    31,859 

Income taxes                        (53,671)    (46,331)    (14,397)  (13,062)

Net earnings                         77,235      66,671      20,718    18,797 

Dividends and accretion on
  redeemable preferred stocks        (6,201)    (21,828)         -     (7,276)

Loss on redemption of
  redeemable preferred stocks       (22,361)         -           -         -  

Net earnings applicable
  to common shareholders         $   48,673  $   44,843   $  20,718 $  11,521 

Weighted average number of
  common and common equiva-
  lent shares outstanding            46,439      38,184      50,026    38,224 

Net earnings per common share    $     1.05  $     1.17   $     .41 $     .30 

 














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

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

<CAPTION>
(In thousands)                                 Thirty-Nine  Weeks Ended 
                                                    May 3,    April 27, 
                                                      1997         1996 
CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                               <C>          <C>
  Net earnings                                    $ 77,235     $ 66,671 
  Adjustments to reconcile net earnings
    to net cash provided by
      operating activities:                                
      Depreciation and amortization                 44,364       41,827 
      Other items                                    1,763         (492)
      Changes in assets and liabilities:
        Accounts receivable                         (9,388)     (11,520)
        Merchandise inventories                    (46,114)     (62,711)
        Other current assets                         4,556       (2,785)
        Accounts payable and
          accrued liabilities                      (15,671)       3,857 

Net cash provided by
  operating activities                              56,745       34,847 


CASH FLOWS USED BY INVESTING ACTIVITIES
  Capital expenditures                             (35,086)     (70,781)
  Purchases of held-to-maturity securities        (457,784)    (411,754)
  Maturities of held-to-maturity securities        421,121      372,911 

Net cash used by investing activities              (71,749)    (109,624)


CASH FLOWS FROM FINANCING ACTIVITIES  
  Proceeds from borrowings                         173,500       93,250 
  Repayment of debt                               (132,000)      (1,047)
  Issuance of common stock                         269,189           51 
  Payment of redemption of
    preferred stock                               (281,426)          -  
  Dividends paid                                    (5,796)     (20,340)

Net cash provided by financing activities           23,467       71,914 


CASH AND EQUIVALENTS
  Increase (decrease) during the period              8,463       (2,863)
  Beginning balance                                 12,659       13,695 

  Ending balance                                  $ 21,122     $ 10,832 







   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.   Fiscal year 1997 will have 52 weeks, while fiscal year 1996 had 53
    weeks.  The 53rd week  in fiscal year 1996 was included in the 1996 fourth
    quarter operating results.

    Certain prior period amounts have been reclassified to conform to current 
    period presentation.

2.  Company public offering

    On  October  17, 1996,  the  Company completed  a  public offering  of 8.0
    million  shares of its common  stock at a price of $35.00  per share.  The
    net proceeds from the offering  ($267.3 million) were used  by the Company
    to partially  fund  the repurchase  of all  of  the Company's  issued  and
    outstanding preferred  stocks from  Harcourt General,  Inc., the Company's
    majority shareholder.  In addition  to the net proceeds,  on November  12,
    1996 the Company paid Harcourt General 3.9 million shares of the Company's
    common stock (valued at $135.0  million at $35.00 per share) and completed
    the exchange  for all  of the Company s issued  and outstanding  preferred
    stocks.   The total consideration paid by the  Company to Harcourt General
    in connection  with the  repurchase was $416.4 million,  plus accrued  and
    unpaid  dividends through the  date of the public  offering. In connection
    with the transaction,  the Company incurred a non-recurring charge  to net
    earnings applicable to common shareholders of $22.4 million.

    Had the public offering and repurchase of the preferred stocks taken place
    at the beginning of the thirty-nine week periods ended May 3, 1997 and
    April  27, 1996, net earnings per share applicable to common shareholders
    for those periods  would have been $1.54  and $1.33, respectively. Had
    the public offering and repurchase of  the preferred stocks taken place at
    the beginning of the  thirteen week  periods  ended May  3, 1997  and
    April 27, 1996, net earnings per share applicable  to common shareholders
    for those  periods would have been $.41 and $.38, respectively. 

3.  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.


                                       4<PAGE>

                         THE NEIMAN MARCUS GROUP, INC.

             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)


3.  Merchandise Inventories (continued)

    If  the FIFO  method of  inventory valuation  had been  used to  value all
    inventories, merchandise inventories  would have been higher than reported
    by $19.5 million at May 3, 1997, by $13.5 million at August 3, 1996 and by
    $20.2  million at  April 27, 1996.   The FIFO valuation  method would have
    increased net earnings by $3.5 million during each of  the thirty-nine
    weeks ended May 3, 1997 and April 27, 1996.

4.  Undivided interests in NMG Credit Card Master Trust

    In  March 1995, NMG sold all of its Neiman Marcus  credit card receivables
    through a subsidiary to a trust in exchange for certificates  representing
    undivided interests in such receivables.  During the quarter ended  May 3,
    1997  the Company began to segregate its undivided interests in NMG Credit
    Card Master Trust from its accounts receivable on the consolidated balance
    sheets.  The undivided  interests in NMG Credit  Card Master Trust include
    the  interests retained by  NMG's subsidiary which are  represented by the
    Class C  Certificate ($54.0  million) and  the Seller's  Certificate  (the
    excess of the total receivables transferred to the trust over the  portion
    represented  by   certificates  sold   to  investors   and  the  Class   C
    Certificate).   The undivided  interests in NMG Credit  Card Master  Trust
    represent  securities which  the Company  intends to  hold to  maturity in
    accordance  with  Statement of  Financial  Accounting  Standards  No. 115,
    "Accounting for Certain  Investments in Debt and Equity Securities."   Due
    to the  short-term revolving  nature  of the  credit card  portfolio,  the
    carrying value of the Company's undivided interest in the  NMG Credit Card
    Master Trust approximates fair value.

5.  New accounting standards

    On January 1, 1997, the Company adopted Statement of Financial  Accounting
    Standards No.  125, "Accounting for Transfers  and Servicing  of Financial
    Assets  and Extinguishments  of Liabilities"  (SFAS 125).   This statement
    provides  consistent guidance  for distinguishing  transfers of  financial
    assets (e.g.  securitizations) that  are  sales  from transfers  that  are
    secured borrowings.   The effect of adopting SFAS  125 was not material to
    the Company's financial position or results of operations.

    In  February  1997,   the  Financial  Accounting  Standards  Board  issued
    Statement of Financial Accounting Standards No.  128, "Earnings per Share"
    (SFAS 128).   Under the new  standard, which must  be adopted  for periods
    ending after December 15, 1997, the Company will be required to change the
    method used  to compute  earnings per share  and to  restate prior periods
    presented.  A dual  presentation of basic  and diluted earnings per  share
    will be  required.  The basic  earnings per share  calculation, which will
    replace  primary earnings per  share, will exclude the  dilutive impact of
    stock  options and other  common share equivalents.   The diluted earnings
    per  share calculation,  which  will  replace fully  diluted  earnings per
    share, will include common  share equivalents.  Under  SFAS 128, basic and
    diluted earnings per share for the thirteen week period  ended May 3, 1997
    would have been,  respectively, $.42 and $.41,  and both basic and diluted
    earnings per share for the thirty-nine week period would have been $1.05.

                                       5<PAGE>

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


Results of Continuing Operations for the Thirty-Nine Weeks Ended May 3, l997
           Compared with the Thirty-Nine Weeks Ended April 27, 1996

Revenues in  the thirty-nine weeks ended May  3, l997 increased $123.2 million
or 7.8%  over  revenues  in  the  thirty-nine  weeks  ended  April  27,  1996.
Comparable  sales for  the period  increased 4.4%.   New Neiman  Marcus stores
opened in  King of  Prussia, Pennsylvania  in February  1996 and  Paramus, New
Jersey in August 1996 also contributed to the increase.  

Cost of  goods sold  including buying and  occupancy costs  increased 7.2%  to
$1.16 billion during the thirty-nine week period ended May 3, 1997 compared to
the same  period  last year,  primarily  due to  higher sales  volume.   As  a
percentage of revenues, cost of goods sold was 67.4% in l997 compared to 67.8%
in l996.    The lower  percentage is  primarily due  to proportionately  lower
buying and occupancy costs, and to improved gross margins at Bergdorf Goodman.

Selling, general and administrative expenses increased 7.7% to $396.3  million
from $368.0  million in 1996, primarily  due to new store  openings and higher
selling costs for the thirty-nine  week period.  As a percentage  of revenues,
selling,  general and  administrative expenses  were essentially  unchanged at
23.1% in 1997 compared to 23.2% in 1996.

Interest  expense decreased 3.3% to $20.4 million  in the 1997 period.  Higher
average  borrowings were  offset  by a  lower  effective interest  rate  which
resulted  from the repayment  at maturity of  the Company's  fixed rate senior
notes with borrowings under its revolving credit agreement.

The  Company's effective income  tax rate is  estimated to be  41.0% in fiscal
l997, unchanged from fiscal 1996.


   Results of Continuing Operations for the Thirteen Weeks Ended May 3, l997
             Compared with the Thirteen Weeks ended April 27, l996

Revenues in  the thirteen weeks ended  May 3, l997 increased  $32.5 million or
6.8% over revenues  in the thirteen weeks  ended April 27, 1996.   The primary
factors contributing  to the revenue increase were the opening of a new Neiman
Marcus  store in Paramus,  New Jersey in  August 1996  and a 9.9%  increase in
revenues at NM Direct. Comparable sales for the period increased 4.5%. 

Cost of goods sold including buying and occupancy costs increased  7.2% in the
thirteen week period ended May 3, 1997 compared to the same  period last year,
primarily due to  higher sales volume.   As a percentage of revenues,  cost of
goods sold was 67.9% in  l997 compared to 67.7% in l996.  The  increase in the
1997 quarter is primarily due to higher markdowns.

Selling,  general  and  administrative expenses  increased  6.2%  in the  1997
period, primarily due to higher sales volume and the additional  Neiman Marcus
store in Paramus, New Jersey.   As a percentage of revenues,  selling, general
and  administrative expenses were essentially  unchanged at 23.4%  in 1997 and
23.5% in 1996.



                                       6<PAGE>
 


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


Interest expense decreased 11.6% to $6.1 million in the 1997 period.  Higher
average borrowings were offset by a lower effective interest rate which
resulted from the repayment at maturity of the Company's fixed rate senior
notes with borrowings under its revolving credit agreement.


       Changes in Financial Condition and Liquidity since August 3, 1996

During  the thirty-nine  weeks  ended May  3, 1997,  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 provided by operating activities was $56.7 million during the thirty-
nine weeks ended  May 3, l997.  The primary item affecting working capital was
an increase in merchandise inventories ($46.1 million).

Capital expenditures were $35.1 million during the thirty-nine weeks ended May
3, 1997 as compared to $70.8 million for the same period in fiscal 1996.   The
Company's  capital  expenditures  consisted   principally  of  renovations  of
existing  stores.   The Company  opened new  Neiman Marcus  stores in  King of
Prussia, Pennsylvania  in February 1996 and  in Paramus, New Jersey  in August
1996.  Capital expenditures  are expected to approximate $55.0  million during
the current fiscal year, and will include remodeling of certain  Neiman Marcus
stores  and both  Bergdorf  Goodman stores  as  well as  initial  expenditures
related to a new Neiman Marcus store in Hawaii, expected to open in 1998.

In October 1996,  the Company issued 8.0 million shares of common stock to the
public  at $35.00 per share.  The net proceeds were used on November 12, 1996,
together with 3.9 million shares of the Company's common stock and  borrowings
of  approximately $20.0 million, to purchase all of its outstanding redeemable
preferred stocks  and pay accrued and unpaid dividends.  The repurchase of the
preferred  stock will  result in  a reduction  of dividend  payments of  $21.3
million in fiscal  1997 compared to fiscal 1996 and  has eliminated all future
preferred dividend and sinking fund requirements. 

The Company increased  its bank borrowings by  $173.5 million since  August 3,
1996, which  included borrowings in August 1996 and December 1996 to repay $52
million and $80 million, respectively, of senior notes at maturity.  At May 3,
1997,  the Company  had $140.0  million available  under its  revolving credit
facility.  The Company believes that it will have sufficient resources to fund
its planned capital growth and operating requirements.

The  Company declared the final aggregate quarterly dividends on its preferred
stocks  in the first quarter of  fiscal 1997, and paid  such dividends of $5.8
million on November 12, 1996 concurrent with the repurchase of these preferred
stocks.   The Company paid  aggregate quarterly dividends  of $20.3 million on
its preferred stocks in the thirty-nine weeks ended April 27, 1996.




                                       7<PAGE>
 



                                    PART II



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

          (a)   Exhibits.


          10.1  The  Neiman  Marcus  Group,  Inc.  1997 Incentive  Plan,
                incorporated  herein by  reference to  Exhibit A  to the
                Company's  Definitive  Schedule  14A  (Definitive  Proxy
                Statement and  Definitive  Additional  Materials),  dated
                December 10, 1996 and filed with the Securities and
                Exchange Commission.

          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 May 3, 1997.
































                                      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       June 17, 1997
Officer:                    Chief Financial Officer



S/John R. Cook           
John R. Cook




Principal Accounting        Vice President and Controller  June 17, 1997
Officer:                                  



S/Stephen C. Richards    
Stephen C. Richards





                                 
                                          










   




                                      9<PAGE>