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                     November 1, 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 December  5,  1997, there  were outstanding  49,920,264  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
             November 1, 1997 and August 2, 1997 and Pro Forma 
             Condensed Consolidated Balance Sheet as of 
             November 2, 1996                                            1

            Condensed Consolidated Statements of Earnings for 
             the Thirteen Weeks ended November 1, 1997 and 
             November 2, 1996                                            2

            Condensed Consolidated Statements of Cash Flows for          
             the Thirteen Weeks Ended November 1, 1997 and
             November 2, 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>
(In thousands)                                                         Pro Forma  
                                        November 1,       August 2,   November 2, 
                                               1997            1997          1996 
                                                                         (Note 1) 

<S>                                     <C>             <C>           <C>
Assets
Current assets:
  Cash and equivalents                  $    18,537     $    16,861   $    16,819 
  Undivided interests in NMG
    Credit Card Master Trust                177,268         128,341       156,944 
  Accounts receivable, net                   64,692          55,041        61,632 
  Merchandise inventories                   569,733         460,412       533,901 
  Deferred income taxes                      19,049          19,049        21,666 
  Other current assets                       47,531          54,339        44,413 

    Total current assets                    896,810         734,043       835,375 

Property and equipment, net                 457,952         454,133       456,148 

Other assets                                 97,218          99,684       105,142 

    Total assets                        $ 1,451,980     $ 1,287,860   $ 1,396,665          

Liabilities and Shareholders' Equity
Current liabilities:
  Notes payable and current maturities
    of long-term liabilities            $    71,466     $     8,810   $    34,082 
  Accounts payable                          207,643         174,952       176,725 
  Accrued liabilities                       183,885         147,730       178,518 

    Total current liabilities               462,994         331,492       389,325 

Long-term liabilities:
  Notes and debentures                      300,000         300,000       409,941 
  Other long-term liabilities                69,735          69,738        69,714 
    Total long-term liabilities             369,735         369,738       479,655 

Deferred income taxes                        31,902          31,902        33,329       
Common stock                                    499             499           499 
Additional paid-in capital                  485,686         485,658       485,631 
Retained earnings                           101,164          68,571         8,226 


Total liabilities and shareholders'
  equity                                $ 1,451,980     $ 1,287,860   $ 1,396,665 



     See Notes to Condensed Consolidated Financial Statements

</TABLE>



                                       1<PAGE>




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

                                                                      
<CAPTION>
(In thousands except for                                       Thirteen Weeks Ended    
per share data)                                           November 1,    November 2, 
                                                                 1997           1996 

<S>                                                       <C>            <C> 
Revenues                                                  $   580,499    $   544,103 
Cost of goods sold including buying and 
  occupancy costs                                             376,127        350,579 
Selling, general and administrative expenses                  141,183        131,054 
Corporate expenses                                              3,138          3,245 

Operating earnings                                             60,051         59,225 

Interest expense                                               (5,729)        (6,848)

Earnings before income taxes                                   54,322         52,377 
Income taxes                                                  (21,729)       (21,475)

Net earnings                                                   32,593         30,902 

Dividends and accretion on
  redeemable preferred stocks                                      -          (6,201)

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

Net earnings applicable to common
  shareholders                                            $    32,593    $     2,340 

Weighted average number of common and common
  equivalent shares outstanding                                50,096         39,601 

Amounts per share applicable to common shareholders:

  Net earnings                                            $       .65    $       .06 


     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)                                               Thirteen Weeks Ended    
                                                          November 1,    November 2, 
                                                                 1997           1996 
<S>                                                       <C>            <C> 
CASH FLOWS FROM OPERATING ACTIVITIES
 Net earnings                                             $    32,593    $    30,902 
 Adjustments to reconcile net earnings
    to net cash provided (used) by operating activities:
      Depreciation and amortization                            15,747         14,966 
      Other items                                               1,692           (645)
      Changes in current assets and liabilities:
         Accounts receivable                                   (9,651)       (10,582)
         Merchandise inventories                             (109,321)       (89,953)
         Other current assets                                   6,808            955 
         Accounts payable and
           accrued liabilities                                 68,846         15,251 
         
Net cash provided (used) by operating 
  activities                                                    6,714        (39,106)


CASH FLOWS FROM INVESTING ACTIVITIES
  Capital expenditures                                        (18,767)       (12,570)
  Purchases of held-to-maturity securities                   (164,817)      (147,332)
  Maturities of held-to-maturity securities                   115,890        104,780 
                                                                      
Net cash used by investing activities                         (67,694)       (55,122)

CASH FLOWS FROM FINANCING ACTIVITIES
  Proceeds from borrowings                                     62,656        148,506 
  Repayment of debt                                               -          (52,000)
  Issuance of common stock                                        -          269,163 
  Payment on redemption of preferred stocks                       -         (260,000)
 

Net cash provided by financing activities                      62,656        105,669 

CASH AND EQUIVALENTS
  Increase during the period                                    1,676         11,441 
  Beginning balance                                            16,861         12,659 
  Ending balance                                          $    18,537    $    24,100 



     See Notes to Consensed 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 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 have historically  not been indicative  of the results
     for a full year.

     The  effect  of  the repurchase  of  the  Company's  redeemable preferred
     stocks  is shown  on the  accompanying Pro  Forma Condensed  Consolidated
     Balance Sheet as of November 2, 1996.  Had the Company's  public offering
     and  repurchase of these preferred stocks taken place at the beginning of
     the thirteen week period ended  November 2, 1996, net earnings  per share
     applicable to common shareholders for that period would have been $.62.

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 $17.0  million at November  1, 1997, $15.0 million  at August
     2, 1997  and $15.5 million at  November 2, 1996.   The FIFO  method would
     have increased net earnings by $1.2  million during each of the  thirteen
     weeks ended November 1, 1997 and November 2, 1996.

3.   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  November 1,
     1997, borrowings of $300  million were outstanding at an interest rate of
     5.91% and were classified as long-term.

4.   Subsequent event

     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.


                                       4<PAGE>

                         THE NEIMAN MARCUS GROUP, INC.

       NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)



5.   Recent accounting pronouncement

     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,  both basic  and  diluted  earnings per  share  for  the
     thirteen week period ended November 1, 1997 would have been $.65.





































                                       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 November 1, 1997
            Compared with the Thirteen Weeks Ended November 2, 1996


Revenues  in the thirteen weeks ended November 1, 1997 increased $36.4 million
or  6.7% over  revenues in  the thirteen weeks  ended November  2, 1996.   The
revenue  growth was primarily  attributable to  comparable sales  increases of
8.2% at Neiman Marcus Stores.  Bergdorf Goodman revenues rose at both the main
store and  Bergdorf Goodman Men,  resulting in a comparable  sales increase of
13.5%.   NM Direct  revenues decreased 8.1%  in comparison to  the prior year,
reflecting weaker demand in the direct mail business. 

Cost  of goods  sold  including buying  and  occupancy costs  increased  $25.5
million  or 7.3%  to $376.1  million compared  to the  same period  last year,
primarily due to increased sales.  As  a percentage of revenues, cost of goods
sold  increased to  64.8% from  64.4% in the  prior year,  reflecting slightly
lower gross margins at Neiman Marcus  Stores which were attributable in  large
part to a shift in  timing of the fall markdowns taken from the second quarter
in fiscal 1997 into the first quarter in fiscal 1998.

Selling, general and administrative expenses increased 7.7% to  $141.2 million
from $131.1 million in 1997.  The increase is primarily attributable to higher
selling  costs  associated with  the  increased sales  in  the period.    As a
percentage of revenues, selling, general and administrative expenses increased
to 24.3% from 24.1% in the prior year.

Interest expense decreased 16.3%  to $5.7 million in the  thirteen weeks ended
November 1, 1997 from  $6.8 million in the prior year.   The decrease resulted
from a  lower effective interest rate  on borrowings as well  as lower average
outstanding borrowings.   In fiscal  1997 the  Company repaid  its fixed  rate
senior  notes  upon  maturity  with  borrowings  under  its  revolving  credit
agreement.






















                                       6<PAGE>


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

       Changes in Financial Condition and Liquidity Since August 2, 1997

During the  thirteen weeks ended  November 1,  1997, the Company  financed its
working  capital needs and capital  expenditures primarily with  cash 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 Statements of Cash Flows.

Net cash provided  by operating activities was  $6.7 million during the  first
quarter of  fiscal 1998.   The primary  items affecting  working capital  were
increases in   merchandise inventories  ($109.3 million) and  accounts payable
and  accrued  liabilities  ($68.8   million).    The  seasonal   increases  in
inventories  and accounts  payable are  primarily due  to preparation  for the
holiday selling season.

Capital  expenditures were $18.8 million during the thirteen week period ended
November  1, 1997 as compared to $12.6 million  in the prior year period.  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
November  1998, and  existing store  renovations.    Capital  expenditures are
expected to approximate $100.0 million during fiscal 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  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 resulted 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 $62.7  million since  August 2,
1997. At  November  1, 1997 the Company had  $350 million available under  its
new  revolving credit  facility.    The Company  believes  that it  will  have
sufficient resources to fund its planned  capital growth,  its operating
requirements  and future acquisitions.

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. 














                                       7<PAGE>


                                    PART II






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

          (a)   Exhibits.

          10.1  Credit Agreement dated as of October 29, 1997 among The Neiman
                Marcus Group, Inc., the Banks parties thereto, Bank of America
                National Trust and Savings Association, as Syndication  Agent,
                The Chase  Manhattan Bank, as  Documentation Agent, and Morgan
                Guaranty Trust Company of New York, as Administrative Agent.

          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
                thirteen week period ended November 1, 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      December 16, 1997
Officer:                   Chief Financial Officer

/s/ John R. Cook
John R. Cook




Principal Accounting       Vice President and Controller  December 16, 1997
Officer:



/s/ Catherine N. Janowski
Catherine N. Janowski
                             




















                                       9<PAGE>