<PAGE>   1


                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                    FORM 10-K
(Mark One)
     [X]       ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF
                  THE SECURITIES EXCHANGE ACT OF 1934
                  [No Fee Required, Effective October 7, 1996]

                   For the Fiscal Year Ended December 31, 1996

                                       OR

     [  ]      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF
                  THE SECURITIES EXCHANGE ACT OF 1934 [No Fee Required]

           For the transition period from                  to

                         Commission File Number 0-21632

                              ELLETT BROTHERS, INC.
             (Exact name of Registrant as specified in its charter)

     SOUTH CAROLINA                                    57-0957069
     (State or other jurisdiction of                   (I.R.S. Employer
     incorporation or organization)                    Identification Number)


     267 COLUMBIA AVENUE, CHAPIN, SOUTH CAROLINA       29036
     (Address of principal executive offices)          (Zip Code)

       Registrant's telephone number, including area code: (803) 345-3751

           Securities registered pursuant to section 12(b) of the Act:
                                      NONE

           Securities registered pursuant to section 12(g) of the Act:

        Title for each class          Name of each exchange on which registered
     COMMON STOCK (NO PAR VALUE)             NASDAQ NATIONAL MARKET SYSTEM

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 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 by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of Registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [x]

As of February 28, 1997 there were 5,081,000 shares of common stock of the
registrant outstanding, and the aggregate market value of the shares of common
stock held by nonaffiliated shareholders (based upon the closing price for the
stock on the Nasdaq National Market on February 28, 1997) was $11,816,500.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Annual Report to Shareholders for the fiscal year ended December
31, 1996 are incorporated by reference into Parts I, II and IV of this report.

Portions of the Registrant's Proxy Statement in connection with the Registrant's
1996 Annual Meeting of Shareholders to be held May 28, 1997 are incorporated by
reference into Part III of this report.



                                  Page 1 of 10


<PAGE>   2



PART I

Statements included in Management's Discussion and Analysis of Financial
Condition and Results of Operations which are not historical in nature, are
intended to be, and are hereby identified as, 'forward looking statements' for
purposes of the safe harbor provided by Section 21E of the Securities Exchange
Act of 1934, as amended by Public Law 104-67. The Company cautions readers that
forward looking statements, including without limitation, those relating to the
Company's future business prospects, revenues, working capital, liquidity,
capital needs, interest costs, and income, are subject to certain risks and
uncertainties that could cause actual results to differ materially from those
indicated in the forward looking statements, due to several important factors
herein identified, among others, and other risks and factors identified from
time to time in the Company's reports filed with the SEC.



ITEM 1. BUSINESS

                                   BACKGROUND
GENERAL

Ellett Brothers, Inc. and subsidiaries (the "Company") is a nationwide marketer
and supplier of natural outdoor sporting goods products. The Company markets and
distributes a broad line of products and accessories for hunting and shooting
sports, marine, camping, archery, and other related outdoor activities. The
Company's product line, which contains over 60,000 stock-keeping units (SKU's),
includes firearms, ammunition, marine electronics, small engine replacement
parts, electric trolling motors, binoculars, cutlery, archery equipment, leather
goods, flashlights, tents, lanterns, sportsmen's gifts, camping accessories,
decorative boxes, licensed nostalgia items and a variety of other natural
outdoor sporting goods products. During fiscal years 1996, 1995 and 1994,
revenues from sales of firearms and ammunition comprised approximately 49.2%,
50.8%, and 63.2%, respectively, of the Company's revenues. The Company features
such recognized brand names as Remington, Ruger, Winchester, Daisy, Rocky Shoes
and Boots, LaCrosse, Motorguide, Coleman, Rubbermaid, Swiss Army, Bear Archery,
and Nikon. The Company's mailing address is 267 Columbia Avenue, Chapin, South
Carolina, 29036, and its telephone number is (803) 345-3751.

Ellett Brothers, Inc. ("Ellett") was incorporated in the state of South Carolina
in June 1992 as the successor to the business that has operated continuously
under the Ellett Brothers name through various ownerships since 1933. Ellett
made an initial public offering of its common stock in June 1993 with a
follow-on offering in October of 1994. During 1995, Ellett implemented its
acquisition strategy by acquiring assets of entities with products that
complement Ellett's existing product line as well as opening the possibility of
new markets or channels of distribution. As a result, substantially all of the
assets of Evans Sports, Inc. ("Evans") and Vintage Editions, Inc. ("Vintage")
were acquired in April and September 1995, respectively. Evans is a manufacturer
of outdoor sporting accessories and wooden nostalgia boxes. Vintage is a
manufacturer of specialty licensed nostalgia products. Also in August 1995,
Ellett purchased the accounts receivable and inventory of Safesport
Manufacturing Company ("Safesport") and subsequently relocated these assets to
South Carolina. Safesport is an importer and marketer of outdoor leisure
products, specializing in camping accessories and cutlery items. All of the
newly acquired assets were transferred to wholly-owned subsidiaries that were
incorporated in the state of South Carolina at the time of each respective
purchase.

HISTORICAL DEVELOPMENT

Ellett originally distributed only fishing supplies to independent sporting
goods dealers located in North Carolina, South Carolina, and Georgia. In 1957,
Ellett began distributing hunting and shooting sports products and outdoor
accessories in an expanded territory and subsequently discontinued the
distribution of fishing equipment. In the early 1970's, Ellett instituted a
teleservicing program that resulted in significant growth in sales and profits.
Shortly thereafter, Ellett eliminated all field sales personnel and began
selling exclusively through its teleservicing staff. By the end of that decade,
the teleservicing operation had transformed Ellett into a leading national
distributor of outdoor sporting goods products, with a primary emphasis on
hunting and shooting sports. In late 1988, the Company began broadening its
product line to include marine accessories. The Company's marine accessories
business has proven to be a natural extension of Ellett Brothers' traditional
sporting goods business, with sales increasing from $2.6 million in 1989 to over
$19.3 million in 1996. In 1994, Ellett formed a new sales group to specifically
target archery retailers, and have shown continued growth since their inception.
The subsidiaries were also purchased to further add to the growth of the
Company, by providing increased sales and gross profit as well as new channels
of distribution.


                                       2
<PAGE>   3



                             DESCRIPTION OF BUSINESS

MARKETING AND DISTRIBUTION

To optimize its responsiveness to its distribution customers and suppliers,
Ellett utilizes a highly-trained group of business unit managers and
state-of-the-art telecommunications technology rather than a field sales force.
Ellett's customer base is organized into individual business units. Each sales
associate, after ten weeks of intensive training, is promoted to manager of an
individual business unit serving a designated customer base. Each business unit
manager also receives an additional 200 hours of training annually. The
teleservicing speed with which sales programs can be implemented is a pivotal
aspect of Ellett's operation. Teleservicing enables Ellett to communicate
frequently with its entire customer base, providing timely updates on market
developments, new product introductions, promotions, order status and inventory
availability. Ellett believes that it is capable of contacting its entire
customer base in two days rather than the weeks typically required by a
traditional field sales force.

The subsidiaries use a combination of teleservicing similar to Ellett's and a
traditional field sales force. Safesport has a teleservicing staff of five
business unit managers as well as outside sales representatives located across
the United States. Evans and Vintage rely on an inside marketing staff as well
as outside sales representatives. The products of the subsidiaries are also
cross-marketed to traditional Ellett customers by Ellett's sales associates to
help generate additional sales for the subsidiaries.

Another important element in maintaining successful customer relationships has
been Ellett's ability to ship orders in a timely fashion. Ellett monitors its
inventory levels through its computerized inventory control system allowing it
to minimize out-of-stock inventory positions. Customer orders are usually ready
for shipment within six business hours following the time the order is received
by a business unit manager. Safesport's inventory control system is also similar
to Ellett's and produces the same benefits to its customers. Consequently, the
Company has virtually no backlog of orders.

The Company utilizes United Parcel Service for delivery services to the majority
of its customers, while a few customers pick up merchandise with their own fleet
of trucks. The use of UPS has allowed the Company to avoid the substantial fixed
costs associated with regional warehouse locations and a fleet of trucks.

PURCHASING AND SUPPLIERS

The Company currently purchases products from approximately 900 manufacturers
and other suppliers. Management believes that the Company's size, reputation,
prompt payment history and overall knowledge of independent sporting goods
retailers have contributed to strong relationships with its suppliers. By taking
advantage of periodic extended payment programs offered by many of these
suppliers, the Company is able to make similar extended payment programs
available to its customers. Certain suppliers also provide advertising
allowances to the Company to assist in the promotion and sale of their products.
The Company's four largest suppliers accounted for approximately 30.2%, 26.6%
and 21.8% of the Company's purchases during 1996, 1995 and 1994, respectively.
The Company believes that its relationships with its suppliers are generally
good, however the Company has no long-term purchase commitments with any of its
suppliers.

CUSTOMERS

The Company currently sells to over 25,800 active customer accounts (defined as
customers who have made a purchase from the Company within the last twelve
months), the majority of which are independent natural outdoor sporting goods
retailers (versus mass merchandisers). The Company seeks to expand its existing
customer base further through the identification of new or alternative channels
for its product lines. New distribution channels recently targeted by the
Company include specialty pro shop retailers of archery products, industry
organization groups and larger sporting goods stores.

Each of Ellett's and Safesport's customers has a specifically-assigned business
unit manager who develops a continuing relationship with the customer. As a
result, management believes that these customers benefit from more personal and
timely interaction with the Company, and the Company benefits from better
management of customer relationships. Business unit managers continually update
each customer's file with product, sales and other customer-specific information
to tailor the Company's services to better suit the customer's needs. Customers
regularly contact their personal business unit manager to obtain current
information regarding compatible products and accessories, product warranties
and product availability.

The Company's largest customer account was responsible for approximately 2.4% of
1996 sales, and sales to the Company's ten largest customer accounts represented
approximately 5.8% of 1996 sales.



                                       3
<PAGE>   4



COMPETITION

The industry in which Ellett competes is extremely competitive. The principal
methods of competition within the natural outdoor sporting goods distribution
industry include purchasing convenience, customer service, inventory selection,
price and rapid customer order turnaround. Ellett believes that it
differentiates itself by its strategies of servicing each customer through that
customer's own personal business unit manager, providing customers with ongoing
product and market information and after-the-sale follow-up, carrying one of the
most extensive selections of inventory in its various product categories and
having customer orders generally ready for shipment within six business hours of
the order being received by a business unit manager.

Ellett's customer base consists almost exclusively of independent sporting goods
retailers located across the United States. Ellett competes with other national
distributors, various regional and local distributors and various manufacturers
who sell certain products directly to these retailers. Ellett has identified
approximately 80 distributors, of whom approximately 10 are national in scope,
competing in the hunting and shooting sports, camping and archery products and
outdoor accessories markets, and has identified approximately 60 other
distributors competing in the marine accessories markets. Certain of these
competitors may have substantially greater financial resources, larger sales and
support staffs and greater purchasing power than Ellett. Ellett's ability to
compete successfully depends on factors both within and outside its control,
including its ability, if necessary, to support reductions in selling prices
through reductions in operating expenses, timing and success of product
introductions, access to high demand products, successful inventory management,
suitable product quality, reliability and price and general economic conditions.
Ellett also indirectly competes with sporting goods mass merchandisers or
"superstores," to which Ellett generally does not sell but which generally sell
in competition with the Ellett's primary customer base of independent sporting
goods retailers.

Although Ellett shares customers with its subsidiaries, competition in the
markets of the subsidiaries differs from Ellett's traditional distribution
business. Management believes Evans and Vintage hold the majority of the market
for nostalgic and licensed decorative boxes, with a few smaller companies
competing for market share. Evans' customer base is dominated by mass
merchandisers and Vintage's sales are predominately through specialty catalogs
and gift shops. The main competitive factor for Evans and Vintage is being able
to produce a product timely and at a price level commensurate to the quality of
the item. Safesport has a higher level of competition within the camping
accessories and cutlery market with approximately a dozen competitors. Like
Ellett, Safesport relies on its teleservicing sales staff, pricing and
availability of inventory as well as shipping customer orders as soon as
possible.

GOVERNMENT REGULATION AND LICENSES

In recent years, an increasing amount and variety of legislation aimed at
eliminating or limiting the production, sale, possession, ownership and use of
certain kinds of firearms has been introduced in the United States Congress and
in various state legislatures, and the Company expects that such legislation
will continue to be introduced in the future. In addition, certain states and
other local governments have already adopted, or are currently considering the
adoption of, laws aimed at the control of firearm possession and ownership by
the public. In 1994, the Brady Bill, which imposes up to a five-day waiting
period for a background check for purchasers of handguns, became effective. In
May 1994, the federal government banned the importation of firearms and
ammunition from China, including three types of firearms and related ammunition
sold by the Company, and the September 1994 Crime Bill imposed a ban on the
production and importation, but not the sale, of 19 types of firearms (including
copycat versions), six of which are sold by the Company, as well as large
capacity magazines. Such legislation however, still allows the Company to
continue to sell these products. There can be no assurance that existing and
future gun control legislation will not have a substantial negative impact on
consumer demand for firearms and result in a material adverse effect on the
Company's financial condition and results of operations.

The Company is also subject to a variety of federal, state and local laws and
regulations relating to, among other things, advertising, the sale and handling
of firearms, the offering and extension of credit and workplace and product
safety, including various regulations concerning the storage of gunpowder.
Certain governmental licenses and permits are also necessary in connection with
the Company's operations. In particular, as with any seller of firearms, the
Company is required to maintain a federal firearms license that imposes various
restrictions and conditions on the Company's operations, including a requirement
that the Company resell firearms and ammunition only to federally licensed
firearms dealers. In addition, all exports of firearms and ammunition require
federal government licenses in advance of shipment. In the event that the
Company should be determined to be in violation of any applicable regulations,
licenses or permits, the Company could become subject to cease and desist
orders, injunctions, civil fines and other penalties. Any such penalties could
have a material adverse effect on the Company's business and results of
operations.




                                       4
<PAGE>   5




SEASONALITY

Historically the Company's business has been seasonal. The sales of hunting and
shooting sports products, as well as camping, archery, and outdoor accessories,
usually increase in the third quarter of each year, and peak early in the fourth
quarter. Sales of marine accessories usually increase in the first quarter of
each year, then peak midway through the second quarter and continue at similar
levels through the first half of the third quarter. Operations of the
subsidiaries have been seasonal, producing significantly higher sales and gross
profit during the third and fourth quarters, with losses in the first and second
quarters. The Company's quarterly operating results also may be affected by a
wide variety of factors, such as legislative and regulatory changes, competitive
pressures, and general economic conditions.

ASSOCIATES

The Company views all of its personnel as associates of the Company, rather than
merely as employees. As of February 28, 1997, the Company employed approximately
430 associates, none of whom was a member of an industry trade union or
collective bargaining unit. Part-time workers (primarily clerical and
distribution) are also utilized over the course of the year as needed to assist
the Company during periods of peak sales.

COMPANY TRADENAMES AND TRADEMARKS

The Company utilizes several trade names, trademarks and service marks in the
course of its business, including, among others, the Ellett Brothers(R), Ellett
Brothers As Big As All Outdoors(R), As Big As All Outdoors(R), and Safesport(R)
trademarks. Although the Company's operations are not dependent upon any single
trade name or trademark, other than the Ellett Brothers trademark, the Company
considers its various trademarks and trade names to be valuable to its business.


ITEM 2. PROPERTIES

The Company's operations are carried out at five separate locations. The
following table sets forth certain information regarding each of these
facilities:

<TABLE>
<CAPTION>
                                           Approximate
                                         Aggregate Usable
                                             Square Feet            Status
                                         ---------------------------------
<S>                                           <C>                   <C>
      Chapin, South Carolina                  190,000               Owned
      Chapin, South Carolina                   40,000               Owned
      Newberry, South Carolina                140,000               Owned
      Houston, Missouri                        62,000               Leased
      Taylorsville, North Carolina             30,000               Leased
</TABLE>

The Company's headquarters is housed in the 190,000 square foot, two-story
office and warehouse facility located on 12 acres of land owned by the Company.
The second floor of this facility, approximately 40,000 square feet, encompasses
the Company's teleservicing sales and administrative departments, including a
complete media workshop as well as a video and photography studio. Both of the
Chapin, South Carolina facilities serve as collateral under the Company's
industrial revenue refunding bonds. See Note 8 to the Financial Statements
incorporated by reference into this report as set forth in Item 8. The Newberry
facility, located on 16.4 acres of land owned by the Company, includes 34,000
square feet of warehouse space added in February 1996 to accommodate the
distribution operations of Safesport relocated from Denver, Colorado.


ITEM 3. LEGAL PROCEEDINGS

The Company is not involved in any material legal proceedings. See Note 13 to
the Financial Statements incorporated by reference into this report as set forth
in Item 8.


ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

No matters were submitted to a vote of shareholders of Ellett Brothers, Inc.
during the fourth quarter of fiscal year 1996.


                                       5
<PAGE>   6


PART  II

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

The information required for this item is incorporated by reference from the
Company's 1996 Annual Report to Shareholders.

The Company did not sell any equity securities during the fiscal year ended
December 31, 1996 which were not registered under the Securities Act of 1933.


ITEM 6. SELECTED FINANCIAL DATA

The information required for this item is incorporated by reference from the
Company's 1996 Annual Report to Shareholders.


ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

The information required for this item is incorporated by reference from the
Company's 1996 Annual Report to Shareholders.


ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

(A) FINANCIAL STATEMENTS

The consolidated balance sheets of Ellett Brothers, Inc. and subsidiaries as of
December 31, 1996 and 1995, and the related consolidated statements of income,
shareholders' equity, and cash flows for each of the three years in the period
ended December 31, 1996 and the report dated February 14, 1997 of Coopers &
Lybrand L.L.P., independent accountants, are incorporated by reference from the
Company's 1996 Annual Report to Shareholders.

(B) SUPPLEMENTARY DATA

Quarterly results of operations for 1996 and 1995 are incorporated by reference
from of the Company's 1996 Annual Report to Shareholders.


ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
        FINANCIAL DISCLOSURE

None.


PART III

Information called for by Part III (Items 10, 11, 12 and 13) of this report on
Form 10-K has been omitted as the Company intends to file with the Securities
and Exchange Commission not later than April 30, 1997, a definitive proxy
statement pursuant to Regulation 14A promulgated under the Securities Exchange
Act of 1934. Such information will be set forth in such Proxy Statement and is
incorporated herein by reference.


ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

The information required by the Item is incorporated by reference from the
section of the Company's Proxy Statement relating to the Annual Meeting of
Shareholders to be held May 28, 1997, under the caption "DIRECTORS AND EXECUTIVE
OFFICERS".


                                       6
<PAGE>   7


ITEM 11. EXECUTIVE COMPENSATION

The information required by this Item is incorporated by reference from those
sections of the Company's Proxy Statement relating to the Annual Meeting of
Shareholders to be held May 28, 1997 under the captions "EXECUTIVE
COMPENSATION", "OPTIONS GRANTS", "FISCAL YEAR-END OPTION VALUES", "SAVINGS AND
RETIREMENT PLAN", "COMPENSATION COMMITTEE REPORT ON EXECUTIVE COMPENSATION" AND
"PERFORMANCE GRAPH."


ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The information required by this Item is incorporated by reference from the
section of the Company's Proxy Statement relating to the Annual Meeting of
Shareholders to be held May 28, 1997 under the caption "SECURITY OWNERSHIP OF
CERTAIN BENEFICIAL OWNERS AND MANAGEMENT."


ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

The information required by this Item is incorporated by reference from the
section of the Company's Proxy Statement relating to the Annual Meeting of
Shareholders to be held May 28, 1997 under the caption "CERTAIN RELATIONSHIPS
AND RELATED TRANSACTIONS."



PART IV

ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K

(a)  The following documents are filed as part of this Form 10-K:

         1.  Financial Statements:

                  Consolidated Balance Sheets - December 31, 1996 and 1995
                  Consolidated Statements of Income - Years ended December 31,
                  1996, 1995 and 1994
                  Consolidated Statements of Shareholders' Equity - Years
                  ended December 31, 1996, 1995 and 1994
                  Consolidated Statements of Cash Flows - Years ended
                  December 31, 1996, 1995 and 1994
                  Notes to Consolidated Financial Statements
                  Report of Independent Accountants

         This information is incorporated by reference from the Company's 1996
Annual Report to Shareholders as noted in Item 8 and included as Exhibit 13
filed as part of this Form 10-K.

         2.  Financial Statement Schedules:

                  Independent Auditors' Report - Page 8
                  Schedule II - Valuation and Qualifying Accounts - Page 9

         All other schedules for which provision is made in the applicable
accounting regulation of the Securities and Exchange Commission are not required
under the related instructions, or are inapplicable, or the required information
is disclosed elsewhere, and therefore, have been omitted.

         3. Exhibits: The Exhibits listed on the accompanying Index to Exhibits
on pages 11 and 12 are filed as part of this report.

(b) There were no reports filed on Form 8-K for the quarter ended December 31,
1996.



                                       7
<PAGE>   8


                        REPORT OF INDEPENDENT ACCOUNTANTS



To the Board of Directors
Ellett Brothers, Inc.


Our report on the consolidated financial statements of Ellett Brothers, Inc. and
subsidiaries is included on page 20 of the Company's 1996 Annual Report to
Shareholders. In connection with our audits of such financial statements, we
have also audited the related financial statement schedule, Schedule II -
Valuation and Qualifying Accounts, included on page 9 herein.

In our opinion, the financial statement schedule referred to above, when
considered in relation to the basic consolidated financial statements taken as a
whole, presents fairly, in all material respects, the information required to be
included therein.



Coopers & Lybrand L.L.P.


Raleigh, North Carolina
February 14, 1997


                                       8
<PAGE>   9


                              ELLETT BROTHERS, INC.

                 SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

               FOR THE YEARS ENDED DECEMBER 31, 1996, 1995 & 1994

                                 (IN THOUSANDS)





<TABLE>
<CAPTION>
                                               Balance at       Charged to    Charged to                Balance at
                                                Beginning          Cost/         Other                      End
                        Description             of Period        Expenses      Accounts    Deductions    of Period
                   ---------------------        ---------        --------      --------    ----------    ---------

<S>                                               <C>            <C>          <C>           <C>          <C>
1996
            Allowance for Doubtful Accounts       $  712         $   933      $  1,471(B)   $ 2,366(A)   $750
                                                  ======         =======      ========      =======      ====

            Allowance for Obsolete Inventory      $  500(D)      $   -  (E)   $   --        $   -  (F)   $500
                                                  ======         =======      ========      =======      ====

1995
            Allowance for Doubtful Accounts       $  521         $   905      $  1,645(C)   $ 2,359(A)   $712
                                                  ======         =======      ========      =======      ====

            Allowance for Obsolete Inventory      $  250(D)      $   -  (E)   $    250(G)   $   -  (F)   $500
                                                  ======         =======      ========      =======      ====

1994
            Allowance for Doubtful Accounts       $  512         $   887      $    953(B)   $ 1,831(A)   $521
                                                  ======         =======      ========      =======      ====

            Allowance for Obsolete Inventory      $  250(D)      $   -  (E)   $   --        $   -  (F)   $250
                                                  ======         =======      ========      =======      ====
</TABLE>


----------
The information above is provided in support of the financial statements as
further described in Note 2 to the financial statements.

(A)      Represents actual write-off of uncollectable accounts.

(B)      Recoveries.

(C)      Represents $1,305 of recoveries and $340 of reserves established at the
         acquisition of the Acquired Businesses and purchased accounts
         receivable of another entity.

(D)      The Company maintains a general reserve for excess or obsolete
         inventory and for lower of cost or market adjustments. As part of the
         Company's inventory management, slow moving items are identified and
         prices are reduced until the items are liquidated. These sales are part
         of sales and cost of sales.

(E)      Reflected as cost of sales. See Note D above.

(F)      Reflected as sales. See Note D above.

(G)      Represents reserves established at acquisition of the Acquired
         Businesses and purchased inventory of another entity.



                                       9
<PAGE>   10

                                   SIGNATURES

         Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Company has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.


                                          ELLETT BROTHERS, INC.
                                          (Registrant)


Date: March 31, 1997                      By:   /s/ Joseph F. Murray, Jr.
                                              ---------------------------
                                              Joseph F Murray, Jr.
                                              President and Chief Executive
                                              Officer


         Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf of the
Company and in the capacities and on the dates indicated.


<TABLE>
<CAPTION>

        Signature                              Title                          Date
        ---------                              -----                          ----
<S>                             <C>                                       <C>


/s/ Robert D. Gorham, Jr.              Chairman of the Board              March 31, 1997
-------------------------
Robert D. Gorham, Jr.


/s/ Joseph F. Murray, Jr.             Director, President and             March 31, 1997
-------------------------             Chief Executive Officer
Joseph F. Murray, Jr.


/s/ Richard M. Eddinger         Vice President of Finance, Treasurer      March 31, 1997
-------------------------           and Chief Financial Officer
Richard M. Eddinger


/s/ E. Wayne Gibson             Director, Chairman of the Executive       March 31, 1997
-------------------------             Committee and Secretary
E. Wayne Gibson


/s/ William H. Batchelor                      Director                    March 31, 1997
-------------------------
William H. Batchelor


/s/ Charles V. Ricks                          Director                    March 31, 1997
-------------------------
Charles V. Ricks


/s/ William H. Stanley                        Director                    March 31, 1997
-------------------------
William H. Stanley

</TABLE>


                                       10
<PAGE>   11

                                INDEX TO EXHIBITS

Exhibit
Number                            Description
------                            -----------

3(a)           Articles of Incorporation of the Corporation. Incorporated by
               reference to the Exhibit of the same number filed as part of the
               Corporation's Registration Statement on Form S-1 (File No.
               33-61490).

3(b)           Bylaws of the Corporation. Incorporated by reference to the
               Exhibit of the same number filed as part of the Corporation's
               Registration Statement on Form S-1 (File No. 33-61490).

4(a)           Specimen Stock Certificate for the Common Stock of the
               Corporation. Incorporated by reference to the Exhibit of the same
               number filed as part of the Corporation's Registration Statement
               on Form S-1 (File No. 33-61490).

4(c)           Loan Agreement between Lexington County, South Carolina and
               Ellett Brothers Limited Partnership dated as of November 1, 1988.
               Incorporated by reference to the Exhibit of the same number filed
               as part of the Corporation's Registration Statement on Form S-1
               (File No. 33-61490).

4(d)           Promissory Note of Ellett Brothers Limited Partnership to
               Lexington County, South Carolina dated December 1, 1988.
               Incorporated by reference to the Exhibit of the same number filed
               as part of the Corporation's Registration Statement on Form S-1
               (File No. 33-61490).

4(e)           Trust Indenture between Lexington County, South Carolina and
               Ellett Brothers Limited Partnership dated as of November 1, 1988.
               Incorporated by reference to the Exhibit of the same number filed
               as part of the Corporation's Registration Statement on Form S-1
               (File No. 33-61490).

4(f)           Mortgage and Security Agreement between Ellett Brothers Limited
               Partnership and Citizens and Southern Trust Company (South
               Carolina), National Association, dated as of November 1, 1988.
               Incorporated by reference to the Exhibit of the same number filed
               as part of the Corporation's Registration Statement on Form S-1
               (File No. 33-61490).

4(i)           Form of Amendment dated June 3, 1992 between Ellett Brothers
               Limited Partnership, NationsBank, Allstate Municipal Income
               Opportunities Trust and Allstate Municipal Income Trust II
               relating to the Loan Agreement filed as Exhibit 4(c).
               Incorporated by reference to the Exhibit of the same number filed
               as part of the Corporation's Annual Report on Form 10-K for the
               year ended December 31, 1993.

4(j)           Form of Letter Agreement dated July 29, 1992 among Allstate
               Municipal Income Opportunities Trust, Allstate Municipal Income
               Trust II, Ellett Brothers Limited Partnership, NationsBank and
               Lexington County relating to the Loan Agreement filed as Exhibit
               4(c). Incorporated by reference to the Exhibit of the same number
               filed as part of the Corporation's Annual Report on Form 10-K for
               the year ended December 31, 1993.

4(k)           Letter dated February 23, 1993 of Allstate Municipal Income
               Opportunities Trust and Allstate Municipal Income Trust II to
               Ellett Brothers Limited Partnership relating to the Loan
               Agreement filed as Exhibit 4(c). Incorporated by reference to the
               Exhibit of the same number filed as part of the Corporation's
               Registration Statement on Form S-1 (File No. 33-61490).

4(l)           Form of Assignment and Assumption Agreement dated June 9, 1993
               between Ellett Brothers Limited Partnership and Ellett Brothers,
               Inc. relating to the Loan Agreement filed as Exhibit 4 (c).
               Incorporated by reference to the Exhibit of the same number filed
               as part of the Corporation's Annual Report on Form 10-K for the
               year ended December 31, 1993.

10(a)          Option Agreement with Joseph F. Murray, Jr. Incorporated by
               reference to the Exhibit of the same number filed as part of the
               Corporation's Annual Report on Form 10-K for the year ended
               December 31, 1995.

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<PAGE>   12

                                INDEX TO EXHIBITS

Exhibit
Number                            Description
------                            -----------

10(b)          Option Agreement with Leonard C. Hale. Incorporated by reference
               to the Exhibit of the same number filed as part of the
               Corporation's Annual Report on Form 10-K for the year ended
               December 31, 1995.

10(c)          Option Agreement with Richard M. Eddinger. Incorporated by
               reference to the Exhibit of the same number filed as part of the
               Corporation's Annual Report on Form 10-K for the year ended
               December 31, 1995.

10(d)          Financing and Security Agreement dated June 10, 1994 between
               First Union Commercial Corporation and the Corporation.
               Incorporated by reference to the Exhibit of the same number filed
               as part of the Corporation's quarterly report on Form 10-Q for
               the quarter ended June 30, 1994.

10(e)          Amendment dated April 21, 1995 to the Financing and Security
               Agreement filed as exhibit 10(d). Incorporated by reference to
               the Exhibit of the same number filed as part of the Corporation's
               Annual Report on Form 10-K for the year ended December 31,
               1995.

10(f)          Amendment dated December 23, 1996 to the Financing and Security
               Agreement filed as Exhibit 10(d).

13             Portions of the Annual Report to Shareholders of the Company for
               the year ended December 31, 1996. Except for those portions of
               such Annual Report to Shareholders expressly incorporated by
               reference into the report, such Annual Report to Stockholders in
               furnished solely for the information of the Securities and
               Exchange Commission and shall not be deemed a "filed" document.

21             Subsidiaries of the Registrant.

27             Financial data schedule.



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