SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D. C. 20549

                                    FORM 10-Q


                Quarterly Report Under Section 13 or 15(d) of the
                         Securities Exchange Act of 1934



For Quarter Ended:  December 29, 1995             Commission File No.:  0-14756
                   

                            The Cosmetic Center, Inc.
             (Exact name of registrant as specified in its charter)


       Delaware                                              52-1266697
(State or other jurisdiction of                            (I.R.S. Employer
incorporation or organization)                            Identification No.)

                              8839 Greenwood Place
                             Savage, Maryland 20763
                    (Address of principal executive offices)


                                 (301) 497-6800
              (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 [  ]


         Indicate  the  number of  shares  outstanding  of each of the  issuer's
classes of common stock as of the latest practicable date.

         Class A Common Stock, par value $.01 per share, outstanding as
                     of January 26, 1996 - 2,713,354 shares

         Class B Common Stock, par value $.01 per share, outstanding as
                     of January 26, 1996 - 1,582,780 shares


<PAGE>


                            THE COSMETIC CENTER, INC.


                                Table of Contents


PART I - FINANCIAL INFORMATION                                            PAGE


 Item 1.  Financial Statements                                           4 -  8

 Item 2.  Management's Discussion and Analysis                           9 - 11
               of Financial Condition and Results of Operations


PART II - OTHER INFORMATION


 Item 6.  Exhibits and Reports on Form 8-K                                   12


                                       2

<PAGE>

                                     PART I


ITEM 1.  Financial Statements                                             PAGE

 Consolidated Balance Sheets
         As of December 29, 1995 (unaudited) and
             September 29, 1995                                          4 - 5

 Consolidated Statements of Earnings (unaudited)
         Three months ended December 29, 1995
             and December 30, 1994                                           6

 Consolidated Statements of Cash Flows (unaudited)
         Three months ended December 29, 1995
             and December 30, 1994                                           7

 Notes to Consolidated Financial Statements (unaudited)
         Three months ended December 29, 1995
             and December 30, 1994                                           8


                                       3

<PAGE>


                   THE COSMETIC CENTER, INC. AND SUBSIDIARIES

                          CONSOLIDATED BALANCE SHEETS

                             (Dollars in thousands)


                                                December 29,       September 29,
                                                   1995                1995
                                                (unaudited)
ASSETS

CURRENT ASSETS:
  Cash and cash equivalents  .  .  .  .  .  .  .     $ 1,544           $1,320
  Accounts receivable, net.  .  .  .  .  .  .  .       1,510              881
  Inventories .  .  .  .  .  .  .  .  .  .  .  .      55,064           61,891
  Prepaid expenses  .  .  .  .  .  .  .  .  .  .         464              529
  Prepaid income taxes .  .  .  .  .  .  .  .  .         651            1,142
  Deferred income tax benefit.  .  .  .  .  .  .         970              970

Total current assets.  .  .  .  .  .  .  .  .  .      60,203           66,733


PROPERTY AND EQUIPMENT:
  Furniture, fixtures and equipment .  .  .  .  .     11,927           11,410
  Leasehold improvements.  .  .  .  .  .  .  .  .      5,077            4,932
  Leased property - capitalized  .  .  .  .  .  .      1,670            1,670

                                                      18,674           18,012

  Accumulated depreciation and amortization. .  .      7,862            7,211

                                                      10,812           10,801

DEPOSITS AND OTHER ASSETS.  .  .  .  .  .  .  .  .       315              307

DEFERRED INCOME TAX BENEFIT .  .  .  .  .  .  .  .       126              126

TOTAL ASSETS .  .  .  .  .  .  .  .  .  .  .  .  .   $71,456          $77,967


                See notes to consolidated financial statements.

                                       4

<PAGE>



                   THE COSMETIC CENTER, INC. AND SUBSIDIARIES

                          CONSOLIDATED BALANCE SHEETS

                             (Dollars in thousands)


                                               December 29,       September 29,
                                                  1995               1995
                                               (unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
  Accounts payable.  .  .  .  .  .  .  .  .  .  $11,784              $17,309
  Note payable - bank.  .  .  .  .  .  .  .  .    8,950               11,985
  Accrued expenses.  .  .  .  .  .  .  .  .  .    5,333                3,628
  Income taxes payable  .  .  .  .  .  .  .  .      196                  430
  Current portion of obligation under
    capital leases  .  .  .  .  .  .  .  .  .       296                  291

  Total current liabilities.  .  .  .  .  .  .   26,559               33,643

OBLIGATION UNDER CAPITAL LEASES         .  .        344                  420

DEFERRED RENT.  .  .  .  .  .  .  .  .  .  .      1,335                1,339

OTHER LIABILITIES.  .  .  .  .  .  .  .  .  .       547                  624

TOTAL LIABILITIES  .  .  .  .  .  .  .  .  .     28,785               36,026


SHAREHOLDERS' EQUITY:
  Class A common stock,  $.01 par value;
   authorized  5,000,000  shares;  issued
    2,741,472 shares and 2,721,472 shares,
    respectively.  .  .  .  .  .  .  .  .  .        28                   27
  Class B common stock, $.01 par value;
   authorized 5,000,000 shares; issued
   1,614,924 shares and 1,594,942 shares,
   respectively.  .  .  .  .  .  .  .  .  .  .       16                  16
  Additional paid-in capital  .  .  .  .  .  .   21,953              21,740
  Retained earnings.  .  .  .  .    .  .  .  .   21,242              20,512
  Treasury stock - Class A common stock,
   28,118 shares at cost                           (214)                 -
  Treasury stock - Class B common stock,
   32,144 shares at cost                           (354)               (354)

TOTAL SHAREHOLDERS' EQUITY     .  .  .  .  .  .  42,671              41,941

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   .  $71,456             $77,967



                 See notes to consolidated financial statements.

                                        5

<PAGE>



                                    THE COSMETIC CENTER, INC. AND SUBSIDIARIES

                                        CONSOLIDATED STATEMENTS OF EARNINGS

                                                    (Unaudited)
                                   (Dollars in thousands, except per share data)


                                                       Three Months Ended
                                                 December 29,       December 30,
                                                    1995               1994

Net sales.  .  .  .  .  .  .  .  .  .  .  .    $  41,580           $   41,859

Cost of sales including buying, occupancy
  and distribution.  .  .  .  .  .  .  .  .  .    32,420               33,233

Selling, general and administrative expenses       7,646                6,294

Total operating expenses.  .  .  .  .  .  .  .    40,066               39,527

Income from operations.  .  .  .  .  .  .  .       1,514                2,332

Other income, net.  .  .  .  .  .  .  .  .  .         29                   29

Interest expense.  .  .  .  .  . .  . . . . .       (316)                (127)

Earnings before income taxes.  .    .  .  .  .     1,227                 2,234

Income taxes.  .  .  .  .  .  .  .  .  .  .  .       497                   905

Net earnings.  .  .  .  .  .  .  .  .  .  .  . $     730               $ 1,329


Net earnings per common share
  Primary.  .  .  .  .  .  .  .  .  .  .  .  . $    0.17               $  0.30

  Fully Diluted.  .  .  .  .  .  .  .  .  .  . $    0.17               $  0.30


Weighted average shares outstanding
  Primary.  .  .  .  .  .  .  .  .  .  .  .  . 4,316,010             4,393,247

  Fully Diluted.  .  .  .  .  .  .   .  .  .  .4,316,010             4,393,247




                 See notes to consolidated financial statements.

                                        6

<PAGE>



                   THE COSMETIC CENTER, INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                                   (Unaudited)
                             (Dollars in thousands)

<TABLE>
<CAPTION>
                                                              Three Months Ended
                                                         December 29,    December 30,
                                                            1995            1994
<S>                                                      <C>             <C>
Cash flows from operating activities:
  Net earnings.  .  .  .  .  .  .  .  .  .  .  .  .  .  . $  730             $1,329
  Adjustments to reconcile net earnings to net
   cash provided by (used in) operating activities:
    Depreciation and amortization.  .  .  .  .  .  .  .  .   704                574
    Change in assets and liabilities:
      Accounts receivable, net.  .  .  .  .  .  .  .  .  .  (629)              (689)
      Inventories.  .  .  .  .  .  .  .  .  .  .  .  .   . 6,827             (2,034)
      Prepaid expenses.  .  .  .  .  .  .  .  .  .  .  . .    12               (455)
      Prepaid income taxes.  .  .  .  .  .  .  .  .  .  .    491                159
      Deposits and other assets.  .  .  .  .  .  .  .  .      (8)               (30)
      Accounts payable.  .  .  .  .  .  .  .  .  .  .  .  (5,525)             4,261
      Accrued expenses.  .  .  .  .  .  .  .  .  .  .  .   1,705                792
      Deferred rent.  .  .  .  .  .  .  .  .  .  .  .   .     (4)                14
      Other liabilities.  .  .  .  .  .  .  .    .  .  .     (77)                --
      Income taxes payable.  .  .  .  .  .  .  .  .  .  .   (234)               737
      Net cash provided by operating activities.  .  .  .  3,992              4,658

Cash flows from investing activities:
  Capital expenditures, net.  .  .  .  .  .  .  .           (662)            (1,104)
      Net cash used in investing activities.  .  .  .  .    (662)            (1,104)

Cash flows from financing activities:
  Net repayments under line-of-credit agreement  .  .  .  (3,035)            (2,940)
  Repayments of capital lease obligations.  .  .  .  .  .    (71)               (67)
      Net cash used in financing activities.  .  .  .  .  (3,106)            (3,007)

Net increase in cash and cash equivalents  .  .  .  .  .     224                547
Cash and cash equivalents at beginning of period    .  .   1,320              1,382

Cash and cash equivalents at end of period .  .  .  .  .  $1,544            $ 1,929

Supplemental Disclosures of Cash Flow Information and
 Non Cash Activities:
 Cash payments for interest.  .  .  .  .  .  .  .  .  .   $  279            $   108
 Cash payment for income taxes.  .  .  .  .  .  .  .  .      239                  8
 Treasury stock.  .  .  .  .  .  .  .  .  .  .  .  .  .  .   214                --


</TABLE>



                 See notes to consolidated financial statements.

                                        7

<PAGE>



                   THE COSMETIC CENTER, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                           FOR THE THREE MONTHS ENDED
                    DECEMBER 29, 1995 and DECEMBER 30, 1994
                                  (Unaudited)


Note 1  Summary of Significant Accounting Policies


Basis of Presentation

      The consolidated  financial  statements contained herein should be read in
conjunction with the consolidated  financial  statements of The Cosmetic Center,
Inc., (the "Company") for the year ended September 29, 1995.

      The  accompanying  consolidated  financial  statements are unaudited,  but
include all adjustments  (consisting only of normal recurring adjustments) which
management  considers necessary for a fair presentation at December 29, 1995 and
December  30, 1994 and for the three month  period  then ended.  The  accounting
policies  applied in the consolidated  financial  statements are consistent with
the accounting policies applied in the consolidated  financial statements of the
Company for the year ended September 29, 1995.

      The  results  for the three  month  periods  ended  December  29, 1995 and
December 30, 1994 are not  necessarily  indicative  of results  expected for the
entire year.


Merchandise Inventories

      The Company's  inventories,  consisting primarily of cosmetic,  fragrance,
beauty aid, and related items,  are valued at the lower of cost or market.  Cost
is determined using the weighted average cost method.


Rental Expenses

      Certain store leases provide for minimum rentals plus  additional  rentals
computed as a percentage of sales in excess of amounts specified in the lease as
minimum  rentals.  The Company  accrues  percentage  rent expense during interim
periods based on actual sales in excess of the prorated annual amounts specified
in the related lease.


                                        8

<PAGE>



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


General

      The Company was founded in 1957, with its initial operations consisting of
the sales of cosmetic  products to wholesale  customers.  The Company opened its
first retail store in 1973 and grew to nine stores in 1986, prior to its initial
public  offering.  In September  1990,  the Company  relocated its  distribution
center to  Savage,  Maryland,  a facility  which the  Company  believes  has the
capacity to service  approximately  100  specialty  retail stores as well as the
Company's  wholesale  operations.  At December 29, 1995, the Company operated 77
stores  under  the  name  "The  Cosmetic   Center(R)"  located  in  the  greater
metropolitan market areas of Washington,  D.C.; Richmond,  Virginia;  Baltimore,
Maryland;   Chicago,   Illinois;   Charlotte/Raleigh/Durham,   North   Carolina;
Philadelphia,   Pennsylvania;   and   Atlanta,   Georgia.   The  Company   sells
approximately  25,000  brand  name  prestige  and   mass-merchandised   cosmetic
products.


Hair Salon Strategy

      Traditionally,  the  manufacturers of professional hair care products have
allowed their products to be sold by retail hair salons only. Historically,  the
Company was able to purchase  professional  hair care  products  from  secondary
sources,  and sales of these products  generally  accounted for 5% to 6 % of the
Company's  annual retail sales.  The Company's  purchases of these  products and
sale at value  prices  to  consumers  was not  looked  upon  favorably  by these
manufacturers.  With  the  growth  of the  Company  over the  past  three  years
sufficient  quantities of top selling  professional  hair care  products  became
increasingly  difficult to purchase through secondary sources.  As a result, the
Company  decided to add hair salons in its existing  stores as an add-on  beauty
service and with the anticipation of developing a direct  relationship  with the
manufacturers of professional hair care products.

      In the latter half of fiscal 1994, the Company opened hair salons in
twelve of the thirteen new stores in the Philadelphia, Pa., Charlotte/Raleigh,
N.C. and Atlanta, Ga. market areas.  In February 1995, the Company began to
retrofit existing stores in its Washington D.C. and Chicago, IL. market areas.
The Company operates hair salons in 67 of its stores.

      In the Spring of 1995, the Company  obtained a verbal  commitment from one
of the four major  professional hair care products  manufacturers to sell to the
Company on a direct  basis.  However,  in order to receive  these  products on a
direct basis, the Company was asked to remove from all of its retail stores, all
professional  hair care products that were purchased from a secondary source. In
order to build a relationship with this manufacturer,  the Company agreed to the
manufacturer's  requirements  in June 1995.  Approximately  30 days  later,  the
Company  began to receive  professional  hair care  products  directly from this
manufacturer  and  continues  to receive  such  products  today.  However,  this
manufacturer  represents  one  third  of  the 6% of  sales  volume  the  Company
surrendered  in order to build the  direct  purchase  relationship.  The loss of
these  professional hair care product sales has adversely  affected retail sales
and profits.  The Company is attempting to develop a similar  relationship  with
the other three major  manufacturers,  but there are no assurances  this will be
achieved.

      Although  the  Company has lost sales and  profits  during the  transition
stages of this arrangement,  the Company believes that there are future benefits
to be derived from maintaining and expanding the  arrangement.  The gross margin
on professional hair care products purchased on a direct basis are significantly
higher than the gross margin on professional  hair care products  purchased on a
secondary  source basis. In addition,  because of the direct  relationship,  the
Company is able to maintain  sufficient  quantities  of  professional  hair care
products in stock, which it could not otherwise maintain.

                                        9

<PAGE>



Results of Operations

      Consolidated  net sales for the three months ended  December 29, 1995 were
$41,580,000,   a  decrease  of  $279,000,  or  0.7%,  from  the  $41,859,000  in
consolidated net sales for the three months ended December 30, 1994.

      Retail  sales  for  the  three   months  ended   December  29,  1995  were
$41,088,000, an increase of $127,000, or 0.3%, from the $40,961,000 in sales for
the three months ended  December  30,  1994.  The net dollar  increase in retail
sales is  attributable to the six stores opened in the later part of fiscal 1995
and the four stores opened in the first quarter of fiscal 1996 net of comparable
store  sales  decline.  Comparable  store  retail  sales for the  period,  which
decreased by  $2,855,000,  or 7.0%,  were  adversely  affected by a softening in
fragrance  sales and by the  transition in the process of  purchasing  hair care
products  described  above.  The Company operated 77 stores at December 29, 1995
and 67 stores at December 30, 1994.

       Wholesale  sales  for the  three  months  ended  December  29,  1995 were
$492,000,  a decrease of $406,000,  or 45.2%, from the $898,000 in sales for the
three months ended December 30, 1994. The Company has focused greater  attention
on  its  retail  business  but  continues  to  serve  its  remaining  market  of
independent drug and merchandise  stores.  Management  continues to evaluate the
viability of the wholesale division.

      Cost of sales, including buying,  occupancy and distribution expenses, was
$32,420,000 (78.0% of sales) for the three months ended December 29, 1995 versus
$33,233,000  (79.4% of sales) for the three months ended  December 30, 1994. The
dollar decrease is primarily  attributable to the six stores opened in the later
part of fiscal  1995 and the four stores  opened in the first  quarter of fiscal
1996. Cost of sales, including buying, occupancy and distribution expenses, as a
percentage of sales were affected positively by gross margin increases primarily
resulting from the direct  purchase of  professional  hair care  products.  This
percentage gain was partially  offset by new stores,  whose sales volume has not
yet grown to the level  experienced by mature stores,  thus having a higher cost
of  sales  percentage  because  of  occupancy  costs.  The  percentage  was also
adversely affected by the decline in comparable store sales

      Selling,  general and  administrative ("S G & A") expenses were $7,646,000
(18.4% of sales) for the three months ended December 29, 1995 versus  $6,294,000
(15.0% of sales) for the three months ended  December 30, 1994. S G & A expenses
increased   $1,352,000  over  the  comparable  period  of  last  year,   however
approximately  $720,000  of  the  increase  is  associated  with  stores  not in
operation  last year and  approximately  $500,000 is associated  with  operating
expenses  of the hair  salons.  S G & A  expenses  as  percentage  of sales were
impacted  for  two  reasons:  1) new  stores  generally  have a  higher  S G & A
percentage  because  their  sales  volume  have not  matured  and 2) the S G & A
percentage of comparable  stores was negatively  impacted by reduced  comparable
stores sales volume.

      Interest  expense was $316,000  (0.8% of sales) for the three months ended
December  29, 1995 versus  $127,000  (0.3% of sales) for the three  months ended
December 30, 1994. The increase in interest expense is primarily attributable to
borrowing under the credit facility to support working capital  requirements and
the opening of four stores during the quarter.


Liquidity and Capital Resources

      The  Company's  working  capital  was  $33,644,000  at  December  29, 1995
compared to  $33,090,000  at September 29, 1995.  The ratio of current assets to
current  liabilities  was 2.3 at December 29, 1995  compared to 2.0 at September
29, 1995.

      Net cash provided by operating  activities  amounted to $3,992,000 for the
three months  ended  December 29,  1995,  resulting  primarily  from net income,
depreciation   and   amortization  and  an  decrease  in  accounts  payable  and
inventories.

      Net cash used in investing  activities  amounted to $662,000 for the three
months ended December 29,

                                       10

<PAGE>



1995. This investment is primarily attributable to the four stores opened during
the quarter and completion of the hair salon retrofit construction.

      Net cash used by financing activities amounted to $3,106,000 for the three
months ended December 29, 1995.  During the three months ended December 29, 1995
the Company  reduced its credit  facility by $3,035,000 and repaid capital lease
obligations in the amount of $71,000.

      At December 29, 1995,  the Company had an unsecured  credit  facility (the
"Facility") with a bank for maximum borrowing of $20,000,000. During the quarter
ended  December  29,  1995,  the  Facility was  increased  from  $15,000,000  to
$20,000,000  to meet  additional  borrowing  needs.  The  incremental  borrowing
capacity was marginally used during the quarter and expired on January 15, 1996.
The  Facility,  which  expires on February 28, 1996,  is subject to repayment on
demand  and  bears  interest,  payable  monthly,  at an  annual  rate  equal  to
three-quarters  of one  percent  (3/4 of 1%) below the  bank's  prime rate or at
LIBOR plus 115 basis  points.  The  Facility  requires  compliance  with certain
restrictive  covenants  including  maintenance of minimum tangible net worth. At
December 29, 1995,  there was an  outstanding  balance of  $8,950,000  under the
Facility. The Company is presently negotiating an extension of the Facility with
its bank.

      The Company's  future capital needs primarily result from its plan to open
additional  new stores.  The Company's  estimated cost of opening a new store is
approximately  $725,000,  including  $550,000 for initial inventory and $175,000
for leasehold improvements,  furnishings and fixtures,  point-of-sale equipment,
hair salon  equipment,  and other items.  The Company  plans to open five to ten
stores during the fiscal year 1996.  The Company  believes that funds  available
from the Facility and internally generated funds will provide sufficient capital
to meet the Company's needs for the next year.


                                       11

<PAGE>



                                     PART II




Item 6. (A)  Exhibits

               EXHIBIT 27- Financial Data Schedule as of December 29, 1995


           (B)  Reports on Form 8-K

               The  Company  did not file any  reports  on Form 8-K  during  the
quarter for which this report is filed.

                                       12

<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 by the
undersigned thereunto duly authorized.


                                                THE COSMETIC CENTER, INC.
                                                      (Registrant)


Date:                                   By       /s/ BEN S. KOVALSKY
                                                     BEN S. KOVALSKY
                                                     Chief Executive Officer,
                                                       Chief Operating
                                                     Officer and President



Date:                                   By       /s/ BRUCE E. STROHL
                                                     BRUCE E. STROHL
                                                     Vice President - Finance
                                                     and Chief Financial Officer

                                       13