SECURITIES AND EXCHANGE COMMISSION
                           WASHINGTON, D.C.   20549
                                       
                                  FORM 10-QSB


(Mark One)

X    Quarterly report pursuant to Section 13 or 15(d) of the
     Securities Exchange Act of 1934

     For the quarterly period ended December 31, 1996

     or

     Transition report pursuant to Section 13 or 15(d) of the Exchange Act
     For the transition period from                     to                     

     Commission file Number    0-17805

                          NEW RETAIL CONCEPTS, INC.                            
       (Exact name of Small Business Issuer as Specified in Its Charter)

            Delaware                                           13-3275369      
(State or Other Jurisdiction of                             (I.R.S. Employer
Incorporation of Organization)                             identification No.)

          2975 Westchester Avenue, Purchase, New York           10577     
           (Address of Principal Executive Offices)          (Zip Code)

                                 (914)694-8888                                 
               (Issuer's Telephone Number, Including Area Code)


Check whether the issuer: (1) filed all reports required to be filed by Section
13 of  15(d) of the Exchange Act during the past 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        
                                       
                      APPLICABLE ONLY TO CORPORATE ISSUER
                                       
Shares of Common Stock outstanding at February 14, 1997: 5,681,639

Transitional Small Business Disclosure Format (check one):

YES                                                       NO    X   

                                       
                                       
                                       
                                       
                                       
                           NEW RETAIL CONCEPTS, INC.
                             INDEX TO FORM 10-QSB
                    FOR THE PERIOD ENDED DECEMBER 31, 1996






                                                                           PAGE
                                                                               
PART I - FINANCIAL INFORMATION

   ITEM 1.  Financial Statements

      Condensed Balance Sheet at December 31, 1996 (unaudited)              3-4
      Condensed Statements of Operations for the Nine Months and
      Three Months Ended December 31, 1996 and 1995 (unaudited)               5

      Condensed Statements of Cash Flows for the Nine
      Months Ended December 31, 1996 and 1995 (unaudited)                     6

      Notes to Interim Financial Statements                                 7-8

   ITEM 2.  Management's Discussion and Analysis of Financial
             Condition and Results of Operations                           9-10

PART II - Other Information                                                  11

   ITEM 2.  Exhibits and Reports on Form 8-K                                 12

























                                    Page 2

                           NEW RETAIL CONCEPTS, INC.
                            CONDENSED BALANCE SHEET
                               DECEMBER 31, 1996
                                  (Unaudited)




                                    ASSETS

CURRENT ASSETS:
  Cash and cash equivalents                                $   322,933
  Accounts receivable - net of allowance for
   doubtful accounts of $12,000                                 43,421
  Note receivable - NES                                        162,169
  Loan receivable - officers                                   132,947

  Other current assets                                          59,160

  Total current assets                                         720,630

FIXED ASSETS - AT COST:
  Furniture and equipment                                      101,657
  Less accumulated depreciation                               (101,657)

                                                                     0
Note receivable - NES                                          546,821
Investment in Candie's, Inc.                                 1,372,892

                                                             1,919,713
OTHER ASSETS                                                         0

TOTAL ASSETS                                               $ 2,640,343








                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
     THE ACCOMPANYING STATEMENTS ARE AN INTEGRAL PART OF THESE STATEMENTS
                                       



                                    Page 3

                           NEW RETAIL CONCEPTS, INC.
                            CONDENSED BALANCE SHEET
                               DECEMBER 31, 1996
                                  (Unaudited)
                                       
                                       
                                       
                                       
                     LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Note payable - current                                    $  300,000
  Accounts payable - trade                                      75,000
  Accrued expenses and other current
   liabilities                                                 102,672

      Total current liabilities                                477,672


DEFERRED INCOME TAXES                                          100,000

STOCKHOLDERS' EQUITY:
  Preferred stock - par value $.01; authorized,
      1,000,000 shares, no shares issued                           -  
  Common stock - par value $.01; authorized,
      25,000,000 shares; issued 6,323,493 shares                63,235
  Additional paid-in capital                                 3,454,534
  Accumulated deficit                                       (1,159,536)

                                                             2,358,233
Less:
  Common stock in treasury at cost;
      606,454 shares                                           295,562
        Total Stockholders' Equity                           2,062,671

Total Liabilities and Stockholders' Equity                  $2,640,343














     THE ACCOMPANYING STATEMENTS ARE AN INTEGRAL PART OF THESE STATEMENTS




                                    Page 4

                           NEW RETAIL CONCEPTS, INC.
                      CONDENSED STATEMENTS OF OPERATIONS
                                  (Unaudited)

                                 Nine Months Ended      Three Months Ended
                                    December 31,                 December 31,
                                 1996         1995       1996        1995  

Revenues:
  License and marketing fees  $  498,661  $  519,751  $  66,367   $ 125,220

Costs and expenses:
  Selling, general
   and administrative            469,880     561,023    148,472     156,598
  Interest expense                13,106      19,974      3,750       5,059

   Total costs and expenses      482,986     580,997    152,222     161,657

Operating income (loss)           15,675     (61,246)   (85,855)    (36,437)

Other income (expense):
  Equity in (losses) gains
   of affiliate                  (78,182)     81,799          0     (51,153)
    Sale of licensing rights           0   1,062,039          0   1,062,039
Other income                      78,872      38,600     20,706      13,570
                                     690   1,182,438     20,706   1,024,456
  (Loss)income before provision
   for income taxes               16,365   1,121,192    (65,149)    988,019

Provision for income taxes         5,982      98,046          0      76,935

Net (Loss) Income             $   10,383  $1,023,146 $  (65,149) $  911,084

Net (loss) income per share
  of common stock:
   Primary and Fully Diluted       $0.00     $  0.16    $ (0.01)    $  0.14

Weighted average number of
  shares outstanding:
   Primary and Fully Diluted   6,025,000   6,531,215  5,725,000   6,335,772

                                       





                                       
                                       
                                       
        THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS
                                       



                                    Page 5

                           NEW RETAIL CONCEPTS, INC.
                      CONDENSED STATEMENTS OF CASH FLOWS
                                  (Unaudited)
                                       
                                       
                                       
                                                      Nine Months Ended
                                                         December 31,
                                                      1996         1995
                                       
Cash flows from operating activities:

     Net cash provided by operating
      activities                                  $   138,096   $   80,551


Cash flows from investing activities:

     Net cash provided by investing
      activities                                       90,274      547,395

Cash flows from financing activities:

     Net cash used in financing
      activities                                     (151,053)    (323,504)

INCREASE IN CASH AND CASH EQUIVALENTS                  77,317      304,442
Cash and cash equivalents at beginning of period      245,616      123,512

Cash and cash equivalents at end of period           $322,933     $427,954

                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
        THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS
                                       

                                    Page 6

                           NEW RETAIL CONCEPTS, INC.
                     NOTES TO INTERIM FINANCIAL STATEMENTS
                          DECEMBER 31, 1996 AND 1995
                                       
                                       
NOTE A - ORGANIZATION AND BASIS FOR PRESENTATION
               
     New Retail Concepts, Inc. ("NRC" or the "Company"), is engaged in managing
its existing  corporate assets  and in seeking other business opportunities for
acquisition or merger.

       The  condensed financial  statements included  herein are  unaudited and
include all  adjustments which are, in the opinion of management, necessary for
a fair presentation of the results of operations of the interim period pursuant
to the  rules and  regulations of  the U.S. Securities and Exchange Commission.
Certain information  and footnote  disclosures normally  included in  generally
accepted accounting  principles have been condensed or omitted pursuant to such
rules and  regulations, although  the Company  believes that the disclosures in
such financial  statements are  adequate to  make the information presented not
misleading.  These condensed financial statements should be read in conjunction
with the  Company's Financial  Statements and the notes thereto included in the
Company's Annual  Report on  Form 10-KSB  for the  fiscal year  ended March 31,
1996.

     The Company has no full-time employees and three part-time employees which
include the Chairman of the Board and President and the Chief Financial Officer
of the Company.

NOTE B - CORPORATE ASSETS

       The  Company owns 1,227,696 shares of the common stock of Candie's, Inc.
("Candie's"), a  Delaware corporation  whose shares  are traded  on the  Nasdaq
National Market,  warrants to purchase 700,000 additional shares of such common
stock exercisable  at an  initial price  of $1.2375  per share and an option to
purchase for  $1.15 per  share 100,000  additional shares of such common stock.
The Company's  holding  in  Candie's  is  recorded  on  the  equity  method  of
accounting.   At December  31, 1996,  such holding  was carried  at $1,372,892,
including approximately  $645,000 of  goodwill (net  of amortization)  which is
being amortized  over a ten-year period.  Revenues, gross profit and net income
of Candie's for the nine months ended October 31, 1996 are as follows:

               Net Revenues                      $10,962,347
               Gross Profit                      $ 2,284,498
               Net (Loss)                        $  (167,928)

      The other corporate assets involving management by the Company include an
account receivable from No Excuses Sportswear, Ltd. ("NES"), license agreements
calling for  the payment  of royalties  to the  Company for  the use  of the NO
EXCUSES trademark, and the trademark CRAYONS.






                                    Page 7

NOTE C - MAJOR LICENSEES (CUSTOMERS)

           Two  major licensees  (customers) accounted  for  83.0%  and  17.0%,
respectively, of  total revenues  for the  nine months ended December 31, 1996.
Three major  licensees accounted  for 57%,  28% and 14%, respectively, of total
revenues for the nine month period ended December 31, 1995.
    
    
    
    
    
    





















                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       

                                    Page 8

         MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS
                           AND RESULTS OF OPERATIONS




Results of Operations

Nine Months Ended December 31, 1996 and 1995

     Total revenues  for the  nine months ended December 31, 1996 were $498,661
as compared  to $519,751  for the corresponding period ended December 31, 1995.
This decrease  is primarily attributable to a decrease in reported shipments by
the Company's No Excuses footwear licensee.
     
     Net income  for the  nine months  ended December  31, 1996  was $10,383 or
$0.00 per  share of  Common Stock,  as compared  to net income of $1,023,146 or
$.16 per  share of  Common Stock,  for the nine months ended December 31, 1995.
This decrease  in net income is principally due to the sale of licensing rights
during the nine months ended December 31, 1995.
     
     Selling, general  and administrative  expenses decreased from $561,023 for
the nine  months ended  December 31, 1995 to $469,880 for the nine months ended
December 31,  1996.   This decrease  was primarily attributable to decreases in
advertising, royalty and professional fee expenses.
     
     Interest expense  for the  nine months ended December 31, 1996 was $13,106
as compared  to $19,974  for the  nine months  ended December  31, 1995.   This
decrease is due to a reduction in notes payable.

Three Months Ended December 31, 1996 and 1995

     Total revenues  for the  three months ended December 31, 1996 were $66,367
as compared  to $125,220  for the corresponding period ended December 31, 1995.
This decrease  is primarily attributable to a decrease in reported shipments of
the Company's footwear licensee.
     
     Net loss for the three months ended December 31, 1996 was $65,149 or $0.01
per share  of Common  Stock, as compared to net income of $911,084, or $.14 per
share of  Common Stock,  for the  three months  ended December  31, 1995.  This
decrease in  net income  is principally  due to  the sale  of licensing  rights
during the three months ended December 31, 1995.
     
     Selling, general  and administrative  expenses decreased from $156,598 for
the three months ended December 31, 1995 to $148,472 for the three months ended
December 31,  1996.   This decrease  was primarily  attributable  to  decreased
professional fees during the period.
     
     Interest expense  for the  three months ended December 31, 1996 was $3,750
as compared  to $5,059  for the  three months  ended December  31, 1995.   This
decrease is due to a reduction in notes payable.
     
     
     

                                    Page 9

Liquidity and Capital Resources
     
     At December  31, 1996  the Company  had working  capital  of  $242,958  as
compared to  working capital  of $79,944  at March  31, 1996.  This increase in
working capital  arose primarily  as a  result of net income for the period and
reclassification of certain long-term assets at March 31, 1996.
     
     The Company  satisfies its  present working  capital and  other  financial
needs from  royalties earned  on its licensing agreements and the proceeds from
the sale  of certain licensing rights.  Management of the Company believes that
the Company  will generate sufficient cash flow for the next twelve months from
its current  cash position  and licensing  fees as  the sublicensor  of the  NO
EXCUSES trademark.
     
     Subsequent to  December 31, 1996, the Company repurchased 35,400 shares of
the Company's common stock at an aggregate purchase price of $27,240.  All such
shares were repurchased in the open market.


                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       

                                    Page 10

                           NEW RETAIL CONCEPTS, INC.
                                       
                          PART II - OTHER INFORMATION
                                       
                                       
Item 1.  Legal Proceedings

    None

Item 6.  Exhibits and Reports on Form 8-K

(a)  Exhibits

     11 -  Computation of earnings per common share.
     27 -  Financial Data Schedule

(b)  Reports on Form 8-K

       No reports on Form 8-K have been filed during the quarter
        ended December 31, 1996.

                                  SIGNATURES

In accordance  with the requirements of the Exchange Act, the Registrant caused
this report  to be  signed on  its behalf  by the  undersigned, thereunto  duly
authorized.

                                             NEW RETAIL CONCEPTS, INC.

DATED:  February 14, 1997                    BY:  /s/ Neil Cole
                                                   Neil Cole
                                                   President
                                                   Chairman
                                             Chief Executive Officer
                                             Chief Accounting Officer
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       

                                    Page 11

                                 EXHIBIT INDEX
                                       
                                       

Exhibit No.  Description                                        Page

    11      Computation of Earnings per Share                    13
              (Nine months ended December 31, 1996 and 1995)

            Computation of Earnings per Share                    14
              (Three months ended December 31, 1996 and 1995)

    27       Financial Data Schedule










































                                    Page 12

                                                             Exhibit 11
                                                             Page 1

                           NEW RETAIL CONCEPTS, INC.
                       COMPUTATION OF EARNINGS PER SHARE




                                            Nine months Ended             
                              December 31, 1996      December 31,  1995  
                                           Fully                   Fully
                             Primary      Diluted   Primary       Diluted

Net Income                   $ 10,383    $ 10,383  $1,023,146  $1,023,146

Weighted average number
 of shares outstanding      5,800,000   5,800,000   6,357,125   6,357,125

Shares issuable upon
 exercise of options
 and warrants                 785,000     785,000     385,000     385,000

Shares assumed to be
 repurchased under the
 treasury stock method       (560,000)   (560,000)   (210,910)   (196,180)
                            6,025,000   6,025,000   6,531,215   6,545,945

NET INCOME (LOSS) PER SHARE     $0.00       $0.00      $ 0.16      $ 0.16


























                                    Page 13

                                                        Exhibit 11
                                                             Page 2

                           NEW RETAIL CONCEPTS, INC.
                       COMPUTATION OF EARNINGS PER SHARE




                                          Three Months Ended              
                              December 31, 1996       December 31, 1995  
                                           Fully                   Fully
                             Primary      Diluted    Primary      Diluted

Net (loss) income            $(65,149)   $(65,149)  $ 911,084   $ 911,084

Weighted average number
 of shares outstanding      5,725,000   5,725,000   6,067,039   6,067,039

Shares issuable upon
 exercise of options
 and warrants                     N/A         N/A     385,000     385,000

Shares assumed to be
 repurchased under the
 treasury stock method            N/A         N/A    (116,267)   (116,267)
                            5,725,000   5,725,000   6,335,772   6,335,772

NET (LOSS) INCOME PER SHARE    $(0.01)     $(0.01)     $ 0.14      $ 0.14
























                                    Page 14