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 2, 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 December  11, 1996,  there were  49,871,309 outstanding  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 2, 1996
          and August 3, 1996 and Pro Forma Condensed Consolidated
          Balance Sheet as of November 2, 1996                           1

          Condensed Consolidated Statements of Earnings for the Thirteen
          Weeks ended November 2, 1996 and October 28, 1995              2

          Condensed Consolidated Statements of Cash Flows for the Thirteen
          Weeks Ended November 2, 1996 and October 28, 1995              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 11.1                                                            10

Exhibit 27.1                                                            11 

                                       <PAGE>


<TABLE>





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


   (In thousands)                           Pro Forma  
                                            November 2,    November 2,     August 3, 
                                                   1996           1996          1996 
                                              (Note 2) 

   Assets
   <S>                                      <C>            <C>           <C>
   Current assets:
     Cash and equivalents                   $   16,819     $   24,100    $    12,659 
     Accounts receivable, net                  218,576        218,576        165,442 
     Merchandise inventories                   533,901        533,901        443,948 
     Deferred income taxes                      21,666         21,666         21,666 
     Other current assets                       44,413         44,413         45,368 

       Total current assets                    835,375        842,656        689,083 

   Advance payment on redemption
    of preferred stocks                             -         260,000             -  

   Property and equipment, net                 456,148        456,148        457,625 

   Intangibles and other assets                105,142        105,142        105,642 

       Total assets                         $1,396,665     $1,663,946    $ 1,252,350          
   Liabilities and Shareholders' Equity
   Current liabilities:
     Notes payable and current maturities
       of long-term liabilities             $   34,082     $   34,082    $    35,576 
     Accounts payable                          176,725        176,725        192,146 
     Accrued liabilities                       178,518        184,314        146,326 

       Total current liabilities               389,325        395,121        374,048 

   Long-term liabilities:
     Notes and debentures                      409,941        390,000        292,000 
     Other long-term liabilities                69,714         69,714         69,940 
       Total long-term liabilities             479,655        459,714        361,940 

   Deferred income taxes                        33,329         33,329         33,329       
   Redeemable preferred stocks                      -         416,426        407,426 

   Common stock                                    499            460            380 
   Additional paid-in capital                  485,631        350,670         83,106 
   Retained earnings (accumulated deficit)       8,226          8,226         (7,879)

   Total liabilities and shareholders'
     equity                                 $1,396,665     $1,663,946    $ 1,252,350 
     
        See Notes to Condensed Consolidated Financial Statements.
</TABLE>
                                                           <PAGE>

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

                                                                      
(In thousands except for                                    Thirteen Weeks Ended    
per share data)                                           November 2,    October 28, 
                                                                 1996           1995 

<S>                                                       <C>            <C>
Revenues                                                  $   544,103    $   489,898 

Cost of goods sold including buying and 
  occupancy costs                                             350,579        318,083 
Selling, general and administrative expenses                  131,054        118,868 
Corporate expenses                                              3,245          2,932 

Operating earnings                                             59,225         50,015 

Interest expense                                               (6,848)        (6,832)

Earnings before income taxes                                   52,377         43,183 
Income taxes                                                  (21,475)       (18,137)

Net earnings                                                   30,902         25,046 

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

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

Net earnings applicable to common
  shareholders                                            $     2,340    $    17,770 

Weighted average number of common and common
  equivalent shares outstanding                                39,601         38,088 

Amounts per share applicable to common shareholders:

  Net earnings                                            $       .06    $       .47 



















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

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

                                                                      
(In thousands)                                              Thirteen Weeks Ended    
                                                          November 2,    October 28, 
                                                                 1996           1995 
CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                       <C>            <C> 
 Net earnings                                             $    30,902    $    25,046 
 Adjustments to reconcile net earnings
    to net cash used by operations:
      Depreciation and amortization                            14,966         13,114 
      Other items                                                (645)         1,811 
      Changes in current assets and liabilities:
         Accounts receivable                                  (53,134)       (48,569)
         Merchandise inventories                              (89,953)      (118,040)
         Other current assets                                     955         (9,573)
         Accounts payable and
           accrued liabilities                                 15,251          42,657 
         
Net cash used by operating activities                         (81,658)       (93,554)


CASH FLOWS USED BY INVESTING ACTIVITIES
  Capital expenditures                                        (12,570)       (24,825)


CASH FLOWS FROM FINANCING ACTIVITIES
  Proceeds from borrowings                                    148,506        124,400 
  Repayment of debt                                           (52,000)          (318)
  Issuance of common stock                                    269,163              3 
  Advance payment on redemption
    of preferred stocks                                      (260,000)            -  
  Dividends paid                                                   -          (6,780)

Net cash provided by financing activities                     105,669        117,305 

CASH AND EQUIVALENTS
  Increase (decrease) during the period                        11,441         (1,074)
  Beginning balance                                            12,659         13,695 
  Ending balance                                          $    24,100    $    12,621 






    
    








   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 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.

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.   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.    Of  the total  consideration,  $260.0  million  in cash  was
     advanced  during October 1996.   In addition to  the advance, on November
     12, 1996 the Company paid Harcourt General $27.2 million in cash  and 3.9
     million shares  of the Company's common stock (valued  at $135.0 million
     at $35.0 per share) and completed  the exchange for all of the  Company's
     issued  and  outstanding  preferred  stocks.    In  connection  with  the
     transaction, the Company incurred a non-recurring charge to  net earnings
     applicable to common shareholders of $22.4 million.

     The  effect of  the repurchase  is shown  on  the accompanying  Pro Forma
     Condensed  Consolidated  Balance  Sheet.   Had  the  public  offering and
     repurchase of  the preferred stocks taken  place at the beginning  of the
     thirteen  week periods ended  November 2, 1996 and  October 28, 1995, net
     earnings per  share applicable to  common shareholders for  those periods
     would have been $.62 and $.50, 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.
     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 November 2, 1996, $16.2 million  at October
     28,  1995 and $13.5  million at  August 3, 1996.   The  FIFO method would
     have increased net  earnings by $1.2 million during each  of the thirteen
     weeks ended November  2, 1996 and  the thirteen weeks  ended October  28,
     1995.


                                       4<PAGE>



                         THE NEIMAN MARCUS GROUP, INC.

       NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)


4.   Selected balance sheet information

     The following  interim balance sheet  information as of  October 28, 1995
is   presented forcomparative purposes:

          Accounts receivable, net                   $198,679
          Merchandise inventories                     477,132
          Total current assets                        753,517
          Property and equipment, net                 436,418
          Total assets                              1,295,859
          Total current liabilities                   379,131
          Long-term notes and debentures              367,000
          Redeemable preferred stocks                 405,938
          Common shareholders' equity                  45,077








































                                       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 2, l996
            Compared with the Thirteen Weeks Ended October 28, 1995


Revenues  in the thirteen weeks ended November 2, 1996 increased $54.2 million
or 11.1% over  revenues in  the thirteen weeks  ended October  28, 1995.   The
revenue growth was  primarily attributable  to a 6.8%  increase in  comparable
sales and  the opening of  two new  Neiman Marcus stores  in King of  Prussia,
Pennsylvania  in February  1996  and  Paramus,  New  Jersey  in  August  1996.
Comparable  sales  at Neiman  Marcus Stores  increased  7.7%, while  NM Direct
revenues increased 8.0% over the  prior year and revenues at  Bergdorf Goodman
increased only slightly.

Cost  of goods  sold  including buying  and  occupancy costs  increased  $32.5
million or  10.2% to  $350.6 million  compared to the  same period  last year,
primarily  due to revenue growth.  As a  percentage of revenues, cost of goods
sold  decreased to  64.4% from  64.9% in  the prior year,  reflecting improved
gross margins at both NM Direct and Bergdorf Goodman. 

Selling, general and administrative expenses increased 10.3% to $131.1 million
from $118.9  million  in 1996.    The increase  is  primarily attributable  to
revenue  growth and  the two  new Neiman  Marcus stores.   As a  percentage of
revenues, selling, general and administrative expenses decreased to 24.1% from
24.3% in the prior year.

Interest expense remained  essentially flat  at $6.8 million  in the  thirteen
weeks  ended November  2,  1996.    The  Company's  average  debt  outstanding
increased  over the  prior year,  however the  repayment of senior  notes with
borrowings from its revolving  credit agreement resulted in a  lower effective
interest rate.

The Company's effective income tax rate is expected to be 41% in fiscal  1997,
compared to 42% in the thirteen weeks ended October 28, 1995.





















                                       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 3,1996

The Company had sufficient cash flows from operations and its revolving credit
agreement  to finance  its  working capital  needs,  capital expenditures  and
preferred dividend requirements during the thirteen week period ended November
2, 1996.  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  in  operating activities  was $81.7  million during  the first
quarter of fiscal 1997.  Net earnings before depreciation and amortization for
the  thirteen week period provided cash of  $45.9 million, which was offset by
changes in working  capital of  $126.9 million.   The primary items  affecting
working  capital  were  increases  in  accounts  receivable  ($53.1  million),
merchandise  inventories  ($90.0 million)  and  accounts  payable and  accrued
liabilities  ($15.3  million).    The  increase  in  accounts  receivable  was
primarily due  to  the  increase in  revenues  during the  period,  while  the
increase  in inventories  is  primarily due  to  preparation for  the  holiday
selling season and the two new stores in King of Prussia and Paramus.

Capital  expenditures were $12.6 million during the thirteen week period ended
November 2, 1996 as compared to $24.8  million in the prior year period.   The
Company's  capital  expenditures  consisted   principally  of  existing  store
renovations.  The  Company opened a  new Neiman Marcus  store in Paramus,  New
Jersey  in  August  1996.  Additional   store  renovation  plans  include  the
remodeling of certain Neiman  Marcus stores and both Bergdorf  Goodman stores.
Capital expenditures  are expected to approximate $75.0  million during fiscal
1997.

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 will  result in  a reduction  of dividend  payments  of $21.3
million in  fiscal 1997 compared to  fiscal 1996, and is  expected to conserve
approximately  $27.1 million of cash  annually as well  as eliminate impending
sinking fund requirements. 

The Company increased  its bank borrowings by  $148.5 million since  August 3,
1996, which  included borrowings made in August 1996 to repay $52.0 million of
senior notes at  maturity.  At  November 2, 1996  the Company had $190 million
available  under its revolving credit facility.   The Company believes that it
will have sufficient resources  to fund its planned capital  growth, operating
requirements and the retirement of its remaining $80.0 million of senior notes
which become due in December 1996.

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 $6.8 million in aggregate quarterly dividends on its
preferred stocks during the first quarter of fiscal 1996.   



                                       7<PAGE>



                                    PART II






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 November 2, 1996.

                The Company filed  a report on  Form 8-K on November  25, 1996
                describing in Item 5 (Other Events) of Form 8-K the repurchase
                of its  preferred stocks  from Harcourt  General and including
                pro forma financial information.
































                                       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 13, 1996
Officer:                     Chief Financial Officer



/s/ John R. Cook
John R. Cook



Principal Accounting        Vice President and Controller     December 13, 1996
Officer:



/s/ Stephen C. Richards
Stephen C. Richards
                             






















                                                  9<PAGE>