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                   February 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 March 10, 1997, there were 49,872,399 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
             February 1, 1997, August 3, 1996 and
             January 27, 1996                                           1
    
           Condensed Consolidated Statements of Earnings
             for the Twenty-Six and Thirteen Weeks ended
             February 1, 1997 and January 27, 1996                      2

           Condensed Consolidated Statements of Cash
             Flows for the Twenty-Six Weeks ended
             February 1, 1997 and January 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                        6-8




Part II.   Other Information

  Item 4.  Submission of Matters to a Vote of Security Holders          9

  Item 6.  Exhibits and Reports on Form 8-K                             9



Signatures                                                              10



Exhibit 11.1                                                            11


Exhibit 27.1                                                            12

                                        <PAGE>
 

<TABLE>



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


<CAPTION>
                                      February 1,     August 3,   January 27,
(In thousands)                               1997          1996         1996 

Assets
<S>                                    <C>          <C>           <C>
Current assets:
  Cash and equivalents                 $   23,780   $   12,659    $   38,239 
  Accounts receivable, net                238,525      165,442       224,014 
  Merchandise inventories                 415,927      443,948       348,733 
  Deferred income taxes                    21,666       21,666        17,102 
  Other current assets                     53,511       45,368        47,959 

    Total current assets                  753,409      689,083       676,047 

Property and equipment, net               452,317      457,625       451,974 

Intangibles and other assets              103,355      105,642       105,340 

    Total assets                       $1,309,081   $1,252,350    $1,233,361 
 

Liabilities and Shareholders' Equity
Current liabilities:
  Notes payable and current
    maturities of long-term
    liabilities                        $    8,807   $   35,576    $   21,167 
  Accounts payable                        151,814      192,146       148,549 
  Accrued liabilities                     155,685      146,326       155,714 

    Total current liabilities             316,306      374,048       325,430 

Long-term liabilities:
  Notes and debentures                    370,000      292,000       342,000 
  Other long-term liabilities              69,476       69,940        68,031 

    Total long-term liabilities           439,476      361,940       410,031 


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

Redeemable preferred stocks                    -       407,426       406,434 

Common stock                                  499          380           380 
Additional paid-in capital                485,631       83,106        83,151 
Retained earnings (accumulated
  deficit)                                 33,840       (7,879)      (22,877)

    Total liabilities and
      shareholders' equity             $1,309,081   $1,252,350    $1,233,361



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 for   Twenty-Six Weeks Ended     Thirteen Weeks Ended   
 per share amounts)        February 1,  January 27,  February 1, January 27, 
                                  1997         1996         1997        1996 

<S>                         <C>          <C>          <C>          <C>
Revenues                    $1,206,050   $1,115,322   $  661,947   $ 625,424 
     
Cost of goods sold
  including buying and
  occupancy costs              811,200      757,025      460,621     438,942 
Selling, general and
  administrative expenses      277,910      256,562      146,856     137,694 
Corporate expenses               6,796        6,335        3,551       3,403 

Operating earnings             110,144       95,400       50,919      45,385 

Interest expense                14,353       14,257        7,505       7,425 

Earnings before
  income taxes                  95,791       81,143       43,414      37,960 
Income taxes                    39,274       33,269       17,800      15,132 

Net earnings                    56,517       47,874       25,614      22,828 

Dividends and accretion
  on redeemable
  preferred stocks              (6,201)     (14,552)          -       (7,276)

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

Net earnings applicable
  to common shareholders    $   27,955   $   33,322   $   25,614  $   15,552 

Weighted average number
  of common and common
  equivalent shares
  outstanding                   44,627       38,163       49,653      38,238 
   
Amounts per share
  applicable to common
  shareholders:                          

Net earnings                $      .63   $      .87   $      .52  $      .41 
  






        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)                                        Twenty-Six Weeks Ended   
                                                    February 1,   January 27,
                                                           1997          1996
<S>                                                 <C>           <C>  
CASH FLOWS FROM OPERATING ACTIVITIES
  Net earnings                                      $    56,517   $    47,874 
  Adjustments to reconcile net earnings
   to net cash provided by (used for) operations:
      Depreciation and amortization                      30,425        26,844 
      Other items                                          (284)          727 
      Changes in current assets and liabilities:
         Accounts receivable                            (73,083)      (73,904)
         Merchandise inventories                         28,021        10,359 
         Other current assets                            (8,143)       (9,549)
         Accounts payable and
           accrued liabilities                          (32,494)      (18,458)
                 

Net cash provided by (used for)
  operating activities                                      959       (16,107)
 

CASH FLOWS USED BY INVESTING ACTIVITIES
  Capital expenditures                                  (23,279)      (52,986)
 

CASH FLOWS FROM FINANCING ACTIVITIES
  Proceeds from borrowings                              183,500       107,900
  Repayment of debt                                    (132,000)         (731)
  Issuance of common stock                              269,163            28 
  Payment on redemption of preferred stocks            (281,426)           -  
  Dividends paid                                         (5,796)      (13,560)
   
Net cash provided by financing activities                33,441        93,637 
  

CASH AND EQUIVALENTS
  Increase during the period                             11,121        24,544 
  Beginning balance                                      12,659        13,695 
  Ending balance                                    $    23,780   $    38,239 
 












        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.

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 twenty-six week periods ended February 1, 1997 and
    January 27, 1996, net earnings per share applicable to common shareholders
    for those periods  would have been $1.13  and $.96, respectively. Had  the
    public offering and repurchase  of the preferred stocks taken place at the
    beginning of the thirteen week periods  ended February 1, 1997 and January
    27, 1996,  net earnings  per share applicable to  common shareholders  for
    those periods would have been $.51 and $.46, 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 $17.5  million at February 1, 1997, $13.5 million at August 3, 1996 and
    $18.2 million at January  27, 1996.  The FIFO method would  have increased
    net earnings by $2.3 million during the twenty-six weeks ended February 1,
    1997 and $2.4 million during the twenty-six weeks ended January 27, 1996.

                                       4<PAGE>
    
   
                         THE NEIMAN MARCUS GROUP, INC.

       NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)


4.  New accounting standard

    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.




























                                       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 Twenty-six Weeks Ended February 1, 1997
           Compared with the Twenty-six Weeks Ended January 27, 1996


Revenues  in the  twenty-six  weeks ended  February  1, 1997  increased  $90.7
million or  8.1% over revenues in the twenty-six weeks ended January 27, 1996.
The increase resulted primarily  from a comparable sales increase of  4.4% and
the opening  of new Neiman Marcus  stores in King of  Prussia, Pennsylvania in
February 1996 and Paramus, New Jersey in August 1996.

Cost  of goods  sold, including  buying and  occupancy costs,  increased $54.2
million  or 7.2% 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, decreased to 67.3% in the
first half of fiscal 1997 compared to 67.9% in the first  half of fiscal 1996.
The lower percentage  was principally due to lower markdowns during the fiscal
1997 holiday season as compared to fiscal 1996.

Selling, general and administrative expenses increased  8.3% to $277.9 million
from $256.6  million in fiscal 1996  primarily due to higher  sales volume and
the expenses of the  two new stores.   As a  percentage of revenues,  selling,
general and  administrative expenses  were essentially  unchanged at 23.0%  in
fiscal 1997 and 1996.

Interest expense increased  1.0% to $14.4  million in the fiscal  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 expected  to be 41% in fiscal 1997,
unchanged from fiscal 1996.



Results of Continuing Operations for the Thirteen Weeks Ended February 1, 1997
            Compared with the Thirteen Weeks Ended January 27, 1996

Revenues in the  thirteen weeks ended February 1, 1997 increased $36.5 million
or 5.8%  over revenues  in the  thirteen weeks ended  January 27,  1996.   The
increase was primarily due to the opening  of new Neiman Marcus stores in King
of  Prussia,  Pennsylvania  and  Paramus,  New  Jersey  and  comparable  sales
increases at  Neiman Marcus Stores and  Bergdorf Goodman, offset in  part by a
5.7% decrease in sales at NM Direct.

Cost  of goods  sold, including  buying and  occupancy costs,  increased $21.7
million or 4.9% during the quarter ended February 1, 1997 compared to the same
period  in fiscal  1996.   As a  percentage of revenues,  cost of  goods sold,
including buying and occupancy costs,  was 69.6% in 1997 compared to  70.2% in
fiscal 1996.  The improved margins in the fiscal 1997 quarter were principally
due  to lower  markdowns during the  fiscal 1997 holiday season as compared to
fiscal 1996.


                                       6<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 $9.2 million or 6.7%
to $146.9 million in the thirteen weeks ended February 1, 1997 compared to the
thirteen weeks ended January 27, 1996, primarily due to the two new stores and
higher selling  costs.   As a  percentage of  revenues,  selling, general  and
administrative expenses were  up slightly to 22.2% in the  fiscal 1997 quarter
compared to 22.0% in the 1996 quarter.

Interest expense increased 1.1%  to $7.5 million  in the thirteen weeks  ended
February 1, 1997 compared to the 1996 quarter.  Higher average borrowings were
offset by a lower effective interest rate which resulted from the repayment 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 first  six months of fiscal 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 $1.0  million during the twenty-
six weeks ended February 1, 1997.  The primary items affecting working capital
were a seasonal increase in accounts receivable ($73.1 million) and a decrease
in accounts payable and accrued  liabilities ($32.5 million), partially offset
by a seasonal decrease in merchandise inventories ($28.0 million).

Capital  expenditures were $23.3 million during  the first half of fiscal 1997
as compared to $53.0 million  in the first half of fiscal 1996.  The Company s
capital expenditures consisted principally  of renovations to existing stores.
The Company opened a new Neiman Marcus store in Paramus,  New Jersey in August
1996.  Capital expenditures  are expected to approximate $65.0  million during
the current fiscal year, and will include remodeling  of certain Neiman Marcus
stores and both Bergdorf Goodman stores.  

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, eliminate all future preferred
dividend   requirements,  as   well  as   eliminate  impending   sinking  fund
requirements. 

The  Company increased its bank  borrowings by $183.5  million since August 3,
1996, which included borrowings made in August 1996 and December 1996 to repay
$52 million  and $80 million, respectively,  of senior notes at  maturity.  At
February 1, 1997, the Company had $130.0 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.  

                                       7<PAGE>


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


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 $13.6 million on
its preferred stocks in the first half of fiscal 1996.
















































                                      8<PAGE>


                                    PART II

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

          The Annual  Meeting of  Stockholders was held on  January 17,  1997.
          The following matters were voted upon at the meeting:

          1.  Election of Jean  Head Sisco as a Class  III Director for a  term
              of three years.

              For            47,778,460
              Against            75,694

              Election of Vincent M. O'Reilly as a Class III Director for a 
              term of three years.

              For            47,787,516
              Against            66,638

          2.  Adoption of the Company's 1997 Incentive Plan.

              For            40,748,182
              Against         4,360,142
              Abstain            96,254
              Non-voting      2,649,576

          3.  Ratification  of the  appointment by  the  Board of  Directors of
              Deloitte  & Touche LLP as the Company's  independent auditors for
              the 1997 fiscal year.

              For            47,809,152
              Against            21,917
              Abstain            23,085

          4.  Stockholder proposal  to increase  disclosure on  compensation of
              executive officers.

              For               888,023
              Against        42,721,244
              Abstain         1,595,311
              Non-voting      2,649,576

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

                                      9<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 17, l997
Officer:                    Chief Financial Officer



/s/ John R. Cook
John R. Cook




Principal Accounting        Vice President and Controller       March 17, l997
Officer:



/s/ Stephen C. Richards
Stephen C. Richards




                                 
















                                      10<PAGE>