FORM 10-Q

                      SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, DC 20549

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


                        For Quarter Ended May 30, 1998
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                         Commission File Number 0-1500
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                                  EVANS, INC.
-------------------------------------------------------------------------------
            (Exact name of registrant as specified in its charter)


           DELAWARE                            36-1050870
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      (State or other jurisdiction of          (IRS Employer
      Incorporation or organization)        Identification Number)



      36 South State Street, Chicago, Illinois              60603
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      (Address of principal executive office)             (Zip Code)



Registrant's telephone number, including area code  312-855-2000


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 __


Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest  practicable  date: as of July 10, 1998 5,194,245
shares of common stock, $.20 par value, were outstanding.


<PAGE>



                         EVANS, INC. AND SUBSIDIARIES

                                     INDEX

                                                                  Page No.
Part I.         Financial Information


           Condensed Consolidated Balance Sheets -
           May 30, 1998, May 31, 1997
           and February 28, 1998                                      2

           Condensed Consolidated Statements of Operations -
           Thirteen weeks ended May 30, 1998
           and May 31, 1997                                           3

           Condensed Consolidated Statements of Cash Flows -
           Thirteen weeks ended May 30, 1998
           and May 31, 1997                                           4

           Notes to Condensed Consolidated Financial Statements     5 - 6

           Management's Discussion and Analysis of Financial
           Condition and Results  of Operations                     7 - 8

Part II.        Other Information                                     9


           Signatures                                                10

           Index to Exhibits                                         11




<PAGE>


                      PART I. FINANCIAL INFORMATION
                      Evans, Inc. and Subsidiaries
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                              (Unaudited)


                               May 30, 1998   May 31, 1997    February 28, 1998
                               -----------    -----------     -----------------
                               (Unaudited)    (Unaudited)      (Audited)
ASSETS
Current assets:
  Cash and cash equivalents     $ 723,000      $ 118,000       $ 650,000
  Accounts receivable (net)    12,960,000     13,238,000      12,639,000
  Merchandise inventories      23,417,000     15,847,000      25,495,000
  Prepaid expenses and other
      asset                       921,000      1,027,000         923,000
  Assets held for sale                  -      4,750,000               -
                               -----------    -----------     -----------

Total current assets           38,021,000     34,980,000      39,707,000
                               -----------    -----------     -----------

Property and equipment         11,663,000     11,340,000      11,642,000
Accumulated depreciation and
     amortization              (8,397,000)    (7,584,000)     (8,203,000)
                               -----------    -----------     -----------

  Net property and equipment    3,266,000      3,756,000       3,439,000
                               -----------    -----------     -----------

Other assets                    5,166,000      3,055,000       5,254,000
                               -----------    -----------     -----------

                              $ 46,453,000   $ 41,791,000    $ 48,400,000
                               ===========    ===========     ===========

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
  Notes payable               $ 14,911,000   $ 13,112,000    $ 13,021,000
  Current portion of
     long-term debt              1,673,000        692,000       1,411,000
  Accounts payable               6,954,000      4,847,000      11,165,000
  Accrued liabilities            6,366,000      6,039,000       4,694,000
                               -----------    -----------     -----------

Total current liabilities       29,904,000     24,690,000      30,291,000
                               -----------    -----------     -----------

Long-term debt                   1,546,000      1,141,000       1,808,000
                               -----------    -----------     -----------

Other liabilities                        -         36,000               -
                               -----------    -----------     -----------

Shareholders' equity:
  Preferred stock, 3,000,000
     shares authorized, none
     issued
  Common stock, 8,000,000
     authorized, 6,333,435
     shares issued               1,267,000      1,267,000       1,267,000
  Capital in excess of par
     value                      15,023,000     15,535,000      15,495,000
  Unearned compensation           (105,000)             -               -
  Retained earnings              2,520,000      3,501,000       3,890,000
                               -----------    -----------     -----------

                                18,705,000     20,303,000      20,652,000

Treasury stock (1,139,190,
     1,347,664 and 1,339,190
     shares at cost,
     respectively               (3,702,000)    (4,379,000)     (4,351,000)
                               -----------    -----------     -----------

                                15,003,000     15,924,000      16,301,000
                               -----------    -----------     -----------

                              $ 46,453,000   $ 41,791,000    $ 48,400,000
                              ============   ============    ============


See accompanying notes to condensed consolidated financial statements.
<PAGE>

                  Evans, Inc. and Subsidiaries
        CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                          (Unaudited)


                                         Thirteen weeks ended
                                    -----------------------------

                                     May 30, 1998    May 31, 1997
                                     ------------    ------------

Net sales                           $ 10,705,000     $ 9,050,000
Service revenues                       6,460,000       4,767,000
                                      ----------      ----------

                                      17,165,000      13,817,000
                                      ----------      ----------
Costs and expenses:

  Cost of goods and services sold,
    buying and occupancy costs        11,190,000       8,966,000
  Selling and general expenses         6,874,000       5,555,000
  Provision for doubtful accounts        143,000         123,000
  Interest expense                       332,000         399,000
  Other income, net                       (4,000)         (2,000)
                                      ----------      ----------

                                      18,535,000      15,041,000
                                      ----------      ----------


Net loss                            $ (1,370,000)   $ (1,224,000)
                                      ==========      ==========

Net loss per common share
   Basic                                 $ (0.26)        $ (0.25)
                                       =========       =========
   Diluted                               $ (0.26)        $ (0.25)
                                       =========       =========

Cash dividends per common share            --              --
                                       =========       =========

Weighted average number of common
  shares outstanding
   Basic                               5,194,245       4,927,198
                                       =========       =========
   Diluted                             5,194,245       4,927,198
                                       =========       =========

See accompanying notes to condensed consolidated financial statements.
<PAGE>

                     Evans, Inc. and Subsidiaries
             CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                               (Unaudited)


                                                Thirteen weeks ended
                                            ------------------------------

                                            May 30, 1998      May 31, 1997
                                            ------------      ------------
Cash Flows from Operating Activities:

Net loss                                   $ (1,370,000)     $ (1,224,000)

Adjustments to reconcile net loss to 
  net cash used in operating activities:
    Depreciation and amortization               281,000           254,000
    Provision for doubtful accounts             143,000           123,000
    Non-cash compensation expense                20,000            24,000

Change in assets and liabilities:
Accounts receivable                            (464,000)         (696,000)
Merchandise inventories                       2,078,000         1,283,000
Prepaid expenses and other current assets        55,000           (58,000)
Other assets                                          -            (1,000)
Accounts payable                             (4,211,000)       (4,471,000)
Accrued liabilities                           1,672,000         1,056,000
Other liabilities                                     -            (7,000)
                                            ------------      ------------

Net cash used in operating activities        (1,796,000)       (3,717,000)

Cash Flows from Investing Activities:

Proceeds from the sale of property and
  equipment                                           -             1,000
Additions to property and equipment             (21,000)          (40,000)
                                            ------------      ------------

Net cash used in investing activities           (21,000)          (39,000)

Cash Flows from Financing Activities:

Proceeds from short-term borrowing            1,890,000         3,804,000
Principal payments on long-term debt                  -           (83,000)
                                            ------------      ------------

Net cash provided by financing activities     1,890,000         3,721,000
                                            ------------      ------------

Net (decrease) increase in cash and cash
  equivalents                                     73,000           (35,000)
Cash and cash equivalents at beginning of
  period                                         650,000           153,000
                                            ------------      ------------

Cash and cash equivalents at end of period    $ 723,000         $ 118,000
                                            ============      ============

Supplemental Disclosures of Cash Flow Information:

Cash paid during the period for:
  Interest                                    $ 310,000         $ 246,000
  Income taxes                                   45,000             4,000


See accompanying notes to condensed consolidated financial statements.
<PAGE>

                        EVANS, INC. AND SUBSIDIARIES

             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                                  (Unaudited)

1.    The financial  information included herein was prepared in conformity with
      generally accepted accounting  principles and such principles were applied
      on a basis  consistent  with those  reflected in the 1998 Form 10-K Annual
      Report filed with the Securities and Exchange Commission. The accompanying
      financial  data  should  be  read  in   conjunction   with  the  notes  to
      consolidated  financial  statements contained in the 1998 Form 10-K Annual
      Report.

      The information  furnished herein,  other than the Condensed  Consolidated
      Balance  Sheet as of February  28,  1998,  is  unaudited  and includes all
      adjustments and accruals  consisting only of normal recurring  adjustments
      which are, in the opinion of management, necessary for a fair statement of
      results for the interim periods. The Condensed  Consolidated Balance Sheet
      as of February  28, 1998 has been derived  from,  and does not include all
      the disclosures  contained in the audited  financial  statements as of and
      for the year ended February 28, 1998.

2.    Because  of the  seasonal  nature  of the  Company's  business,  operating
      results for the first  thirteen  weeks are not considered to be indicative
      of the results that may be expected for the full year.  Historically,  the
      Company  realizes a major  portion of its annual  revenues and most of its
      earnings in the fourth quarter of its fiscal year.

3.    The  following  table  sets  forth the  computation  of basic and  diluted
      earnings per share:
                                    Weighted
                                      Avg.
                                    Net loss       Shares      Per Share
                                   (Numerator)  (Denominator)   Amounts
                                   -----------  -------------  ----------
       Thirteen  weeks  ended May
       30, 1998
       Basic EPS:
       Loss  available  to common
       shareholder                 $(1,370,000)   5,194,245      $(0.26)
                                   ===========    =========      =======
       Effect of dilutive options                         0
                                                  ---------
       Dilutive EPS:
       Loss  available  to common
       shareholder  plus  assumed
       conversions                 $(1,370,000)   5,194,245      $(0.26)
                                   ===========    =========      =======
       
       Thirteen  weeks  ended May
       31, 1997
       Basic EPS:
       Loss  available  to common
       shareholder                 $(1,224,000)   4,927,198      $(0.25)
                                   ===========    =========      =======
       Effect of dilutive options                         0
                                                  ---------
       Dilutive EPS:
       Loss  available  to common
       shareholder  plus  assumed
       conversions                 $(1,224,000)   4,927,198      $(0.25)
                                   ===========    =========      =======
       
<PAGE>

4.    On May 28,  1998,  the Company  amended its  agreement  with its lender to
      establish and modify certain financial  covenants to reflect the Company's
      current operating results and financial needs.

5.    On June 3, 1998, the Company amended its agreement and promissory note
      related to the acquisition of the assets in connection with the
      operation of Maximilian(R)Fur Salons.  The amendments provide for a
      revised payment plan for the quarterly installments due May 4, 1998 and
      August 4, 1998.  The payments are as follows:  $100,000 due and paid
      with interest on June 30, 1998; $84,850 is due monthly from August 31,
      1998 through November 30, 1998 with the final installment due December
      15, 1998.  The payments will be paid with interest at a rate of 10% per
      annum.  The remaining debt schedule will remain intact without interest.

6.    On April 27, 1998, the Company entered into a consulting agreement with an
      outside  director for a three year period ending December 31, 2000.  Among
      other things,  the agreement  provides for a fee of 144,000  shares of the
      Company's  common  stock.  The  unearned   compensation  related  to  this
      agreement is included in the  Shareholder's  Equity section of the balance
      sheet and is being amortized over the term of the agreement.






<PAGE>


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

Liquidity and Capital Resources

Cash and cash  equivalents at May 30, 1998 were $723,000 as compared to $650,000
at February  28,  1998.  The  increase  was due to cash  provided  by  financing
activities  of  $1,890,000,  offset  by cash  used in  operating  and  investing
activities of $1,796,000 and $21,000, respectively.

The cash  used in  operating  activities  was due  primarily  to the net loss of
$1,370,000 and a decrease in accounts payable of $4,211,000, partially offset by
a decrease in merchandise  inventories  of $2,078,000.  The decrease in accounts
payable and  merchandise  inventories is due a decrease in purchases  related to
the seasonal nature of the business.

The cash used in  investing  activities  was the result of additions to property
and equipment of $21,000.

The cash provided by financing  activities  was due to proceeds from  short-term
borrowings of $1,890,000.

Working  capital at May 30, 1998 was  $8,117,000  as compared to  $9,416,000 at
February 28, 1998.

On May 28, 1998, the Company  amended its agreement with its lender to establish
and  modify  certain  financial  covenants  to  reflect  the  Company's  current
operating results and financial needs.

On June 3, 1998, the Company  amended its agreement and promissory  note related
to  the   acquisition  of  the  assets  in  connection  with  the  operation  of
Maximilian(R) Fur Salons.  The amendments provide for a revised payment plan for
the quarterly  installments due May 4, 1998 and August 4, 1998. The payments are
as follows: $100,000 due and paid with interest on June 30, 1998; $84,850 is due
monthly  from  August  31,  1998  through  November  30,  1998  with  the  final
installment  due December 15, 1998. The payments will be paid with interest at a
rate of 10% per annum.  The remaining  debt schedule will remain intact  without
interest.

The credit  facility  which  expires  June 15,  2000 is  considered  adequate to
finance  seasonal  inventory  requirements  as well as  commitments  for capital
expenditures during fiscal 1999.

Results of Operations

Total  revenues for the first  quarter ended May 30, 1998  increased  $3,348,000
(24.2%)  as  compared  to the same  period  last  year.  Fur  merchandise  sales
increased $1,591,000 (47.7%) due primarily to an increase of $2,106,000 in sales
associated  with  locations  acquired  during the second  quarter of 1998 and an
increase of $340,000 (13.7%) in sales at comparable  locations.  These increases
were partially offset by sales of $855,000  associated with store closing events
in the Macy's stores in Texas in the first quarter of fiscal year 1998.  Women's
ready-to-wear  sales increased  $63,000 (1.1%) over the prior year first quarter
reflecting the continuing  recovery of the apparel  business.  Service  revenues
increased  $1,693,000  (35.5%)  due  almost  entirely  to an  increase  of sales
associated with locations acquired during the second quarter of 1998.
<PAGE>

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

Results of Operations, continued

Cost of goods and services sold,  buying and occupancy  costs as a percentage of
total  revenues  for the first  quarter  were 65.2% as compared to 64.9% for the
same period last year.  Cost of goods and services sold as a percentage of total
revenues  decreased (47.7% versus 48.2%) due primarily to the Company's  attempt
in March of the prior year to  stimulate  demand at certain  lower  retail price
points.  Buying costs as a percentage  of total  revenues were  comparable  with
prior year levels.  Occupancy costs as a percentage of total revenues  increased
(14.7% versus 13.5%) primarily due to higher average rental costs related to the
locations acquired during the second quarter of 1998.

Total selling and general expenses  increased  $1,319,000 (23.7%) as compared to
the prior year due  primarily to an increase of  $1,242,000  (33.5%) in payroll,
related  fringe  benefits,  and other general costs  associated  with  locations
acquired during the second quarter of 1998.

Interest expense for the first quarter  decreased  $67,000 (16.8%) due primarily
to higher average  short-term  borrowings at a lower weighted  average  interest
rate as compared to the same period last year.

The net loss for the first quarter of  $1,370,000 as compared to $1,224,000  for
the prior year period was primarily the result of funding the non-variable costs
and related benefit  components of locations  acquired during the second quarter
of 1998.

Other

In response to the Year 2000 issue,  the Company has begun to identify,  
evaluate and  implement  changes to its existing  computerized business  
systems.  The Company is addressing the issue through a combination of 
modifications to existing  programs and conversions to Year 2000  compliant  
software.  In  addition,  the Company is in the  process of  communicating  
with its  vendors  and other  service providers to determine  whether they are 
actively  involved in projects to ensure that their products and business 
systems will be Year 2000  compliant.  The Company  does not  anticipate  any  
material  problems  associated  with using  computer  programs or  retrieving
computerized  information  with respect to Year 2000. The Company is still  
quantifying  the impact of total costs  associated with the required 
modifications and conversions.  These costs are being expensed as incurred.

<PAGE>




                          PART II - OTHER INFORMATION


Item 6.         Exhibits and Reports on Form 8-K



           (a)  Exhibits

                27   Financial Data Schedule

           (b)  Reports  on Form 8-K - There  were no  reports on Form 8-K filed
                during the thirteen weeks ended May 30, 1998



           Items other  than  those  listed  are  omitted  because  they  are 
               not required.



<PAGE>




                                  SIGNATURES



Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf of the
undersigned thereunto duly authorized.





                               EVANS, INC.






DATE:   July 13, 1998          ROBERT K. MELTZER
                               -----------------------
                               ROBERT K. MELTZER
                               President and
                               Chief Executive Officer




DATE:   July 13, 1998          WILLIAM E. KOZIEL
                               -----------------------
                               WILLIAM E. KOZIEL
                               Vice President and
                               Chief Financial Officer





<PAGE>




                         EVANS, INC. AND SUBSIDIARIES




           Exhibit                                  Page Nos.

              27                                    12