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 August 29, 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 Identification
       Incorporation or organization)                        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 October 12, 1998, 
5,199,845 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 -
               August 29, 1998, August 30, 1997
               and February 28, 1998                                          2

               Condensed Consolidated Statements of Operations -
               Thirteen and Twenty-six weeks ended August 29, 1998
               and August 30, 1997                                            3

               Condensed Consolidated Statements of Cash Flows -
               Twenty-six weeks ended August 29, 1998
               and August 30, 1997                                            4

               Notes to Condensed Consolidated Financial Statements        5 - 6

               Management's Discussion and Analysis of Financial
               Condition and Results  of Operations                        7 - 9

Part II.              Other Information                                      10


               Signatures                                                    11
               Index to Exhibits                                             12
<PAGE>

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


                                August 29,     August 30,    February 28, 
                                   1998           1998          1997
                                ----------    -----------    -----------
ASSETS                                                       (Audited)
Current assets:
  Cash and cash equivalents     $  700,000    $  194,000    $  650,000
  Accounts receivable (net)     11,775,000    12,019,000    12,639,000
  Merchandise inventories       25,846,000    22,048,000    25,495,000
  Prepaid expenses and other 
          assets                   175,000     1,399,000       923,000
  Assets held for sale                   -     4,750,000            -
                                ----------    ----------    ----------

Total current assets            38,496,000    40,410,000    39,707,000
                                ----------    ----------    ----------

Property and equipment          11,789,000    11,505,000    11,642,000
Accumulated depreciation and 
          amortization          (8,582,000)   (7,752,000)   (8,203,000)
                                ----------    ----------    ----------

  Net property and equipment     3,207,000     3,753,000     3,439,000
                                ----------    ----------    ----------

Other assets                     5,094,000     5,411,000     5,254,000
                                ----------    ----------    ----------

                               $46,797,000   $49,574,000   $48,400,000
                               ===========   ===========   ===========

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
  Notes payable                $16,809,000   $15,441,000   $13,021,000
  Current portion of long-term 
          debt                   1,745,000     2,197,000     1,411,000
  Accounts payable               9,392,000     7,772,000    11,165,000
  Accrued liabilities            5,617,000     6,073,000     4,694,000
                                ----------    ----------    ----------

Total current liabilities       33,563,000    31,483,000    30,291,000
                                ----------    ----------    ----------

Long-term debt                   1,193,000     4,252,000     1,808,000
                                ----------    ----------    ----------

Other liabilities                        -        17,000             -
                                ----------    ----------    ----------

Shareholders' equity:
  Preferred stock, 3,000,000 shares
    authorized, none issued
  Common stock, 6,333,435 shares
          issued                 1,267,000     1,267,000     1,267,000
  Capital in excess of par 
          value                 15,023,000    15,510,000    15,495,000
  Unearned compensation            (96,000)            -             -
  (Accumulated deficit)retained
          earnings                (451,000)    1,424,000     3,890,000
                                ----------    ----------    ----------

                                15,743,000    18,201,000    20,652,000

Treasury stock (1,347,664 
          shares at cost)       (3,702,000)   (4,379,000)   (4,351,000)
                                ----------    ----------    ----------

                                12,041,000    13,822,000    16,301,000
                                ----------    ----------    ----------

                               $46,797,000   $49,574,000   $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     Twenty-six weeks ended
                         ----------------------   -----------------------
                         August 29,   August 30,  August 29,   August 30, 
                            1998         1997         1998         1997 
                         ------------ ----------- ------------ ------------

Net sales                $ 8,201,000  $ 7,266,000 $ 18,906,000 $ 16,316,000
Service revenues           4,218,000    4,006,000   10,678,000    8,773,000
                         -----------   ----------   ----------  -----------

                          12,419,000   11,272,000   29,584,000   25,089,000
                         -----------   ----------   ----------  -----------
Costs and expenses:

  Cost of goods and 
     services sold, 
     buying and 
     occupancy             8,957,000    7,593,000   20,147,000   16,559,000
  Selling and general
     expenses              5,953,000    5,221,000   12,827,000   10,776,000
  Provision for doubtful 
     accounts                113,000      134,000      256,000      257,000
  Interest expense           370,000      401,000      702,000      800,000
  Other income, net           (3,000)           -       (7,000)      (2,000)
                        ------------   ----------   ----------  -----------

                          15,390,000   13,349,000   33,925,000   28,390,000
                        ------------   ----------   ----------  -----------

Net loss                  (2,971,000)  (2,077,000) (4,341,000)  (3,301,000)
                        ============ ============  ========== ============
Net loss per common 
     share                   $ (0.57)     $ (0.42)    $ (0.84)     $ (0.67)
                        ============ ============  ========== ============
Weighted average number
     of common shares
     outstanding           5,194,245    4,985,771   5,194,245    4,956,485
                        ============ ============  ========== ============



See accompanying notes to condensed consolidated financial statements.

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

                                                Twenty-six weeks ended
                                           ---------------------------------

                                           August 29, 1998     August 30, 1997
                                           --------------      -------------
Cash Flows from Operating Activities:

Net loss                                    $ (4,341,000)      $ (3,301,000)

Adjustments to reconcile net loss to net 
     cash used in operating activities:
    Depreciation and amortization                548,000            513,000
    Provision for doubtful accounts              256,000            257,000
    Non-cash compensation expense                 47,000             16,000

Change in assets and liabilities:
Accounts receivable                              608,000            389,000
Merchandise inventories                         (351,000)        (1,914,000)
Prepaid expenses and other current assets        782,000           (447,000)
Other assets                                           -           (177,000)
Accounts payable                              (1,773,000)        (1,546,000)
Accrued liabilities                              923,000          1,090,000
Other liabilities                                      -            (26,000)
                                           --------------      -------------

Net cash used in operating activities         (3,301,000)        (5,146,000)

Cash Flows from Investing Activities:

Acquisition of business                                -         (5,387,000)
Additions to property and equipment             (156,000)           (92,000)
                                           --------------      -------------

Net cash used in investing activities           (156,000)        (5,479,000)

Cash Flows from Financing Activities:

Proceeds from short-term borrowing             3,788,000          6,133,000
Note payable related to acquisition                    -          3,815,000
Proceeds from long-term debt                           -          1,009,000
Payments on acquisition debt                    (100,000)                 -
Payments on long-term debt                      (181,000)          (291,000)
                                           --------------      -------------

Net cash provided by financing activities      3,507,000         10,666,000
                                           --------------      -------------

Net increase in cash and cash equivalents         50,000             41,000
Cash and cash equivalents at beginning of 
     period                                      650,000            153,000
                                           --------------      -------------

Cash and cash equivalents at end of period     $ 700,000          $ 194,000
                                           ==============      =============

Supplemental Disclosures of Cash Flow Information:

Cash paid during the period for:
  Interest                                     $ 673,000          $ 673,000
  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  twenty-six  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
          Twenty-six weeks ended
          August 29, 1998
          Basic EPS:
          Loss available to common
          shareholder                   $(4,341,000)       5,194,245    $(0.84)
                                        ============       =========    =======
          Effect of dilutive options                               0
                                                           ---------

          Dilutive EPS:
          Loss available to common
          shareholder plus assumed
          conversions                   $(4,341,000)       5,194,245    $(0.84)
                                        ============       =========    =======
          

          Twenty-six weeks ended
          August 30, 1997
          Basic EPS:
          Loss available to common
          shareholder                   $(3,301,000)       4,956,485    $(0.67)
                                        ============       =========    =======
          Effect of dilutive options                               0
                                                           ---------

          Dilutive EPS:
          Loss available to common
          shareholder plus assumed
          conversions                   $(3,301,000)       4,956,485    $(0.67)
                                        ============       =========    =======
<PAGE>

                             EVANS, INC. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                                   (Unaudited)

4.      Evans  recognizes  the  potential  impact that  the  Year 2000 issue may
        have  relative  to its  computer systems  and has  implemented an action
        plan to  ensure  that all  systems  will be fully  Year 2000  compliant.
        The  action  plan  includes  a  combination  of  internal  and  external
        resources to  be utilized for  modifications.  These  modifications will
        include hardware and software upgrades or replacement  of  non-compliant
        systems.  Modifications   for  all  systems  are  in  various  stages of
        completion.   Some   modifications   have  been  fully  implemented  and
        satisfactorily  tested, while others are in lesser stages of completion.
        The Company is  confident  that  all  systems  will  be  appropriately  
        modified in a timely manner to handle the turn of the  century  computer
        issues.  The  related costs of compliance are currently being evaluated.
        Preliminary estimates range from $500,000 to $750,000.

        The Company has completed its  assessment  with regard to  non-financial
        software  and  chip  embedded  technology.  Modifications  will  include
        upgrades or replacement of systems. The cost of making those adaptations
        are not  expected  to be  material  and will be  expensed  in the period
        incurred.

        The Company has contacted its critical suppliers,  service providers and
        partners to determine  the extent to which the Company is  vulnerable to
        those third parties'  failure to remedy their own Year 2000 issues.  The
        Company  has  received  indications  from a majority  of its  suppliers,
        service  providers  and partners that they are in the process of working
        on  Year  2000  compliance.  In the  event  that  any  of the  Company's
        significant suppliers, service providers or partners do not successfully
        and timely  achieve  Year 2000  compliance,  the  Company's  business or
        operations could be adversely affected.

        The  costs of the  project  and the date on which the  Company  plans to
        complete  its  Year  2000   assessment  and  remediation  are  based  on
        management's   estimates,   which  were   derived   utilizing   numerous
        assumptions  of future events  including the continued  availability  of
        certain  resources,  third party  modification  plans and other factors.
        However, there can be no guarantee that these estimates will be achieved
        and actual results could differ significantly from those plans.

        The  Company  is  developing  contingency  plans  for  the  above  areas
        addressing any material failure to deal with Year 2000 issues.



<PAGE>



                          EVANS, INC. AND SUBSIDIARIES

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

Liquidity and Capital Resources

Cash and cash  equivalents  at August 29,  1998 were  $700,000  as  compared  to
$650,000  at  February  28,  1998.  The  increase  was due to cash  provided  by
financing  activities of $3,507,000 offset by cash used in operating  activities
of $3,301,000 and cash used in investing activities of $156,000.

The cash used in  operating  activities  was due  primarily  to the  increase in
inventories and accounts payable of $351,000 and $1,773,000 respectively, due to
the  purchase of fur  merchandise  for the acquired  locations  coupled with the
seasonal increase of inventory for the fall season.

The cash used in  investing  activities  was due to  additions  to property  and
equipment of $156,000.

The cash provided by financing  activities  was due to proceeds from  short-term
borrowings  of  $3,788,000  offset by  payments  on  acquisition  debt and other
long-term debt totaling $281,000.

Working  capital at August 29, 1998 was  $4,933,000 as compared to $9,416,000 at
February 28, 1998. The decrease in working capital is due to the general funding
of operations in the first and second quarters.

The  $35,000,000  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 second quarter ended August 29, 1998 increased $1,147,000
(10.2%)  as  compared  to the same  period  last  year.  Fur  merchandise  sales
increased  $677,000 (21.1%) due primarily to locations  acquired during the last
month of the second  quarter of fiscal 1998.  The current  quarter  includes all
three  months  of  revenues.  Sales at  comparable  locations  were flat for the
quarter.  Women's  ready-to-wear  sales increased  $258,000 (6.4%).  The Company
believes  that  women's  ready-to-wear  sales  were  favorably  impacted  by the
increase in the demand for casual wear by  consumers.  The Company  continues to
focus its  efforts  to  provide  product  in line with the  tastes of its target
consumers.  Service  revenues  increased  $212,000  (5.3%) due  primarily  to an
increase of $625,000 in sales from locations  acquired  during the last month of
the second  quarter of fiscal  1998  offset by a  comparable  sales  decrease of
$413,000.  The  comparable  sales  decrease  is a result  of the  impact  of the
unseasonably  warm winter as  customer's  needs for  services on their fur coats
decreased due to decreased use of the garments.



<PAGE>



                          EVANS, INC. AND SUBSIDIARIES

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

Total revenues for the first six months increased $4,495,000 (17.9%) as compared
to the same period last year. Fur merchandise sales increased $2,269,000 (34.6%)
due primarily to sales of $2,799,000  from  locations  acquired  during the last
month of the second  quarter of fiscal 1998 and an increase of comparable  sales
of $325,000.  The Company  believes that the comparable sales increase is due to
the continued resurgence of fur as fashion. These increases were offset by sales
of $855,000 associated with store closing events in the Macy's store in Texas in
the second  quarter of 1998.  Women's  ready-to-wear  sales  increased  $321,000
(3.3%).  The Company  believes that women's  ready-to-wear  sales were favorably
impacted by the increase in the demand for casual wear by consumers. The Company
continues to focus its efforts to provide product in line with the tastes of its
target consumers.  Service revenues increased $1,905,000 (21.7%) due an increase
of  $2,382,000  from  locations  acquired  during  the last  month of the second
quarter of fiscal 1998 offset by a comparable  sales  decrease of $477,000.  The
comparable  sales  decrease is a result of the impact of the  unseasonably  warm
winter as  customer's  needs for  services on their fur coats  decreased  due to
decreased use of the garments.

Cost of goods and services sold,  buying and occupancy  costs as a percentage of
total  revenues  for the second  quarter and for the first six months  increased
(72.1%  versus  67.4% and 68.1% versus  66.0%  respectively).  Cost of goods and
services sold as a percentage of revenues  increased from 47.3% to 50.5% for the
second quarter and increased  from 47.8% to 48.8% for the six month period.  The
increase in the quarter and year to date is due to  increased  costs  associated
with running the service business at locations acquired during the last month of
the  second  quarter  of fiscal  1998.  Buying  costs as a  percentage  of total
revenues,  for both the quarter and for the six months  ended,  were  comparable
with prior year levels.  Occupancy  costs as a percentage of total  revenues for
the second  quarter  (17.6%  versus  15.9%) and first six months  (15.9%  versus
14.6%) increased in comparison with the prior periods.  These increases were due
primarily  to higher  average  rental costs  related to the rentals  included on
locations acquired during the second quarter of 1998.

Total selling and general  expenses  increased  $733,000  (14.0%) and $2,052,000
(19.0%)  for the second  quarter  and for the first six months  respectively  as
compared  to the prior  year.  Payroll and  related  fringe  benefits  increased
$888,000  (24.5%)  and  $2,049,000  (28.5%)  for the  quarter  and year to date,
respectively.  The  increases  are due  primarily  to the payroll  and  benefits
related to the acquisition and the operation of the  Maximilian(R) Fur Salons at
Bloomingdale's  Stores.   For the second  quarter,  the  increase was offset  by
settlements received totaling approximately $81,000 in the second quarter of the
previous year.

Interest expense for the second quarter and first six months  decreased  $31,000
(7.7%)  and  $98,000  (12.3%)  respectively  due  primarily  to  higher  average
short-term  borrowings at a lower weighted  average interest rate as compared to
the same period last year.
<PAGE>

                          EVANS, INC. AND SUBSIDIARIES

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

The credit for income  taxes for the second  quarter and year to date was offset
by an increase in the Company's  valuation  allowance with respect to the future
tax benefits of the net operating  loss as a result of the  uncertainty of their
ultimate realization.

Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995

Certain  statements  included  in  these  financial   statements  that  are  not
historical facts may include  forward-looking  statements.  The Company cautions
readers that these forward-looking  statements are subject to a variety of risks
and  uncertainties  that could cause Evans' actual results to differ  materially
from  those   expressed   in   forward-looking   statements.   These  risks  and
uncertainties  include,  without  limitation,   general  economic  and  business
conditions  affecting  the customers in existing and new  geographical  markets,
competition  from national,  regional and local  retailers,  the availability of
sufficient capital, and the ability to obtain and identify the right product mix
and to maintain sufficient inventory to meet customer demand.




<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  twenty-six
               weeks ended August 29, 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:   October 12, 1998                    ROBERT K. MELTZER
                                            ------------------------      
                                            ROBERT K. MELTZER
                                            President and
                                            Chief Executive Officer




DATE:   October 12, 1998                    WILLIAM E. KOZIEL
                                            ------------------------
                                            WILLIAM E. KOZIEL
                                            Vice President and
                                            Chief Financial Officer




<PAGE>




                          EVANS, INC. AND SUBSIDIARIES



        Exhibit                                                  Page No.

            27                                                        12