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, 1997

     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)

                                                                
            (Former name, Former Address and Former Fiscal Year,
                        if Changed Since Last Report)

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, 1998: 5,693,639

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, 1997




                                                       
                                                                      PAGE
PART I - FINANCIAL INFORMATION

   ITEM 1.  Financial Statements

      Condensed Balance Sheet at December 31, 1997 (unaudited)         3-4
      Condensed Statements of Operations for the Nine Months and
      Three Months Ended December 31, 1997 and 1996 (unaudited)         5

      Condensed Statements of Cash Flows for the Nine Months
      Ended December 31, 1997 and 1996 (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 1.  Legal Proceedings                                          11
   
   ITEM 2.  Exhibits and Reports on Form 8-K                           11


























                                      2
                          NEW RETAIL CONCEPTS, INC.
                           CONDENSED BALANCE SHEET
                              DECEMBER 31, 1997
                                 (Unaudited)





                                   ASSETS

CURRENT ASSETS:
  Cash and cash equivalents                                  $   396,968
  Marketable securities                                           76,923
  Accounts receivable - net                                       16,255
  Note receivable - NES                                          171,832
  Other current assets                                            17,164

     Total current assets                                        679,142

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

                                                                       -

Note receivable - NES                                            374,990
Investment in Candie=s, Inc.                                   1,871,939

                                                               2,246,929



                                                             $ 2,926,071




















       THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS

                                      3
                          NEW RETAIL CONCEPTS, INC.
                           CONDENSED BALANCE SHEET
                              DECEMBER 31, 1997
                                 (Unaudited)



                    LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Note payable - current                                     $   200,000
  Accounts payable - trade                                        10,000
  Accrued expenses and other current
   liabilities                                                   169,157


     Total current liabilities                                   379,157


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 6,423,493 shares                   64,235
  Additional paid-in capital                                   3,468,534
  Accumulated deficit                                           (663,883)

                                                               2,868,886
Less:
  Common stock in treasury at cost;
      729,854 shares                                             421,972

                                                               2,446,914

                                                             $ 2,926,071

















    THE ACCOMPANYING STATEMENTS ARE AN INTEGRAL PART OF THESE STATEMENTS

                                      4
                          NEW RETAIL CONCEPTS, INC.
                     CONDENSED STATEMENTS OF OPERATIONS
                                 (Unaudited)


                                             
                                 Nine Months Ended     Three Months Ended
                                    December 31,      December 31,
                                 1997         1996       1997        1996  




Revenues:
  License and marketing fees   $ 315,668   $ 498,661   $ 50,983  $   66,367

Costs and expenses:
  Selling, general
   and administrative            436,369     469,880    128,981     148,472
  Interest expense                11,250      13,106      3,750       3,750

   Total costs and expenses      447,619     482,986    132,731     152,222

Operating (loss) income         (131,951)     15,675    (81,748)    (85,855)

Other income (expense):
  Equity in gains (losses)
   of affiliate                  274,857     (78,182)    48,790         0
  Interest and other income       32,359      78,872      7,679      20,706
                                 307,216         690     56,469      20,706
Income (loss) before provision
  for income taxes               175,265      16,365    (25,279)    (65,149)

Provision (credit) for income
  taxes                            3,009       5,982     (1,991)          0

NET INCOME (LOSS)              $ 172,256  $   10,383 $  (23,288) $  (65,149)


Net income (loss) per share
  of common stock:
   Basic                          $0.03     $  0.00    $(0.00)    $ (0.01)
   Diluted                        $0.03     $  0.00    $(0.00)    $ (0.01)











       THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS

                                      5
                          NEW RETAIL CONCEPTS, INC.
                     CONDENSED STATEMENTS OF CASH FLOWS
                                 (Unaudited)





                                                       Nine Months Ended
                                                         December 31,
                                                     1997          1996



Cash flows from operating activities:

      Net cash provided by
      operating activities                        $    43,228  $  138,096


Cash flows from investing activities:
     
     Net cash provided by investing
      activities                                       55,680      90,274

Cash flows from financing activities:
     
     Net cash used in financing
      activities                                     (162,974)   (151,053)

(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS      (64,066)     77,317
Cash and cash equivalents at beginning of period      461,034     245,616

Cash and cash equivalents at end of period        $   396,968  $  322,933




















      THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS.

                                      6
                          NEW RETAIL CONCEPTS, INC.
                    NOTES TO INTERIM FINANCIAL STATEMENTS
                         DECEMBER 31, 1997 AND 1996

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, 1997.

           The Company has no full-time employees and two 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 System, 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, 1997,  such holding  was carried at
$1,871,939,  including   approximately   $540,000   of   goodwill   (net   of
amortization), which  is being  amortized over  a ten-year period.  Equity in
gains (losses)  of affiliate  for the nine months ended December 31, 1997 and
1996 only  include the  affiliate's results  from operations  for  the  seven
months ended  October 31,  1997 and  1996.   Revenues, gross  profit and  net
income of Candie's for the nine months ended October 31, 1997 are as follows:

                    Net Revenues       $70,367,254
                    Gross Profit       $17,832,544
                    Net Income         $ 3,826,781

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





                                      7
NOTE C - MAJOR LICENSEES (CUSTOMERS)

           Two  major licensees  (customers) accounted  for 80.3%  and 14.7%,
respectively, of  total revenues for the nine months ended December 31, 1997.
Two major  licensees accounted  for 83.0%  and 17.0%,  respectively, of total
revenues for the nine month period ended December 31, 1996.

NOTE D - MARKETABLE SECURITIES

          Marketable securities consist primarily of common equity securities
of a publicly traded company.  The Company accounts for marketable securities
using Statement  of Financial  Accounting Standards  No. 115, "Accounting for
Certain Investments  in Debt  and Equity  Securities" ("SFAS No. 115").  This
standard requires  that certain  debt and  equity securities  be adjusted  to
market value at the end of each accounting period.  At December 31, 1997, all
securities covered  under SFAS  No. 115 were designated as available for sale
and are  stated at  market value.   Market  value of  securities approximated
their cost and, accordingly, no realized market gains or losses were reported
in a  separate component  of shareholders' equity.  Realized gains and losses
on sales  of investments  will be  determined on  a  specific  identification
basis.

NOTE E - SUBSEQUENT EVENT

             On January 30, 1998, the Company entered into a letter of intent
with Candie's,  Inc. pursuant  to which the Company would merge with and into
Candie's, Inc.   Each  issued and  outstanding common  share of the Company's
stock is  expected to be converted into .405 shares of Candie's Common stock.
The completion of the transaction is subject to the execution and negotiation
of a  definitive merger  agreement, registration of the Candie's shares to be
issued in  the transaction  under the Securities Act of 1933, as amended, and
other customary  conditions including stockholder approval of the transaction
by both the Company and Candie's.

NOTE F - NET INCOME (LOSS) PER SHARE

          During the quarter, the Company adopted the provisions of Statement
of Financial  Accounting Standards  NO. 128,  "Earnings Per  Share."    Basic
earnings per  share excludes  dilution and  is computed  by  dividing  income
available to  common shareholders  by  the  weighted  average  common  shares
outstanding for  the period.  Diluted earnings per share reflect the weighted
average common  shares outstanding  plus the  potential  dilutive  effect  of
securities or contracts which are convertible to common shares.

           The  weighted average  number of shares outstanding for the period
presented is as follows:

                               Nine Months Ended     Three Months Ended
                                    December 31,      December 31,
                                 1997         1996       1997        1996   

 Basic Shares                  5,709,000   5,800,000  5,694,000   5,725,000
 Effect of Dilutive Securities   593,000     225,000
     
 Diluted Shares                6,302,000   6,025,000  5,694,000   5,725,000

                                      8
       MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS
                          AND RESULTS OF OPERATIONS


Results of Operations

Nine Months Ended December 31, 1997 and 1996

            Total  revenues for  the nine months ended December 31, 1997 were
$315,668 as  compared to $498,661 for the corresponding period ended December
31, 1996.   This decrease is primarily attributable to a decrease in reported
shipments and  royalty rate  of its  licensee for No Excuses footwear and the
expiration of  the Company's  license for  children's sportswear  at July 31,
1997.

          Net income for the nine months ended December 31, 1997 was $172,256
or $0.03  per share  of Common Stock, as compared to net income of $10,383 or
$0.00 per share of Common Stock, for the nine months ended December 31, 1996.
This increase  in net income is principally due to the equity in the gains of
Candie's, Inc.

            Selling,  general  and  administrative  expenses  decreased  from
$469,880 for the nine months ended December 31, 1996 to $436,369 for the nine
months ended  December 31, 1997.  This decrease was primarily attributable to
decreases in advertising, royalty and professional fee expenses.

            Interest  expense for  the six months ended December 31, 1997 was
$11,250 as  compared to  $13,106 for the nine months ended December 31, 1996.
This decrease is due to a reduction in notes payable.

Three Months Ended December 31, 1997 and 1996

     Total revenues for the three months ended December 31, 1997 were $50,983
as compared  to $66,367 for the corresponding period ended December 31, 1996.
This decrease  is primarily  attributable to a decrease in reported shipments
and royalty rate of the Company's footwear licensee and the expiration of the
Company's license for children's sportswear at July 31, 1997.

     Net loss  for the  three months ended December 31, 1997 was $(23,288) or
$(0.00) per  share of Common Stock, as compared to a net loss of $(65,149) or
$(0.01) per  share of  Common Stock,  for the three months ended December 31,
1996.   This decrease  in net  loss is  principally  due  to  a  decrease  in
operating expenses and an increase in the gains of Candie's, Inc.

     Selling, general and administrative expenses decreased from $148,472 for
the three  months ended  December 31,  1996 to  $128,981 for the three months
ended December  31, 1997.   This  decrease was  primarily attributable  to  a
decrease in payroll expenses during the period.

     Interest expense for the three months ended December 31, 1997 was $3,750
as compared to $3,750 for the three months ended December 31, 1996.





                                      9
Liquidity and Capital Resources


          At December 31, 1997 the Company had working capital of $299,985 as
compared to  working capital of $335,760 at March 31, 1997.  This decrease in
working capital  arose primarily  as a  result of  an operating  loss for the
period.

            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(R) trademark.










































                                     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

     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, 1997.

                                 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, 1998             BY:  /s/ Neil Cole
                                         Neil Cole
                                         President
                                         Chairman
                                         Chief Executive Officer
                                         Chief Accounting Officer






















                                     11
                                EXHIBIT INDEX



Exhibit No.  Description                                        Page


   27        Financial Data Schedule                             13