UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

     [xx]  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  SECURITIES
EXCHANGE ACT OF 1934

                       For the transition period from to

                        Commission File Number: 0-26676

                     MULTIMEDIA CONCEPTS INTERNATIONAL, INC.
             (Exact name of registrant as specified in its charter)

Delaware                                                    13-3835325
(State or other jurisdiction of                             (I.R.S. Employer
incorporation or organization)                              Identification No.)

                 448 West 16th Street, New York, New York 10011
              (Address of principal executive offices) (Zip Code)

                                 (212) 675-6666
              (Registrant's telephone number, including area code)

              (Former name, former address and former fiscal year,
                          if changed since last report)

     Check whether the issuer (1) has filed all reports  required to be filed by
section 13 or 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 [xx] No [
]

     APPLICABLE  ONLY TO CORPORATE  ISSUERS  INVOLVED IN BANKRUPTCY  PROCEEDINGS
DURING THE PRECEDING FIVE YEARS

     Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the  distribution  of
securities under a plan confirmed by a court. Yes [ ] No [ ]

                      APPLICABLE ONLY TO CORPORATE ISSUERS

     Common stock, par value $.001 per share: 3,005,000 shares outstanding as of
December 31, 1997.



<PAGE>
            MULTIMEDIA CONCEPTS INTERNATIONAL, INC. AND SUBSIDIARIES


<TABLE>
<CAPTION>
                                    CONTENTS

                                                                                                        Page
                                                                                                       Number




PART 1- FINANCIAL INFORMATION

         ITEM 1- FINANCIAL STATEMENTS

<S>                      <C> <C>                                                                                   <C>
         Consolidated balance Sheets as of  December 31, 1997 (Unaudited)
           and September 30, 1997                                                                                  3

         Consolidated statements of Operations (Unaudited)  for the three
           months ended December 31, 1997 and December 31, 1996                                                    4

         Consolidated statements of Cash Flows (Unaudited) for the three months
         ended December 31, 1997 and December 31, 1996                                                             5

         Notes to Financial Statements (Unaudited)                                                                 6


         ITEM 2- MANAGEMENT'S DISCUSSION AND ANALYSIS
                 OF FINANCIAL CONDITION AND RESULTS OF
                 OPERATIONS                                                                                        9

PART II- OTHER INFORMATION                                                                                         10

         Signatures                                                                                                11

</TABLE>












<PAGE>
            MULTIMEDIA CONCEPTS INTERNATIONAL, INC. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS
                 As of December 31, 1997 and September 30, 1997
<TABLE>
<CAPTION>


                                                                              December 31,    September 30,
                                                                              1997                1997
                                                                              (Unaudited)     (Note 1)

                                                      ASSETS

CURRENT ASSETS:
<S>                                                                            <C>             <C>         
 Cash and cash equivalents .................................................   $  1,072,068    $     13,189
 Accounts receivable .......................................................        374,289         723,112
 Advances to supplier ......................................................           --            60,000
 Inventories ...............................................................         94,000          66,662
 Loans and advances-affiliate ..............................................         89,815          89,815
 Loan receivable-officer ...................................................        489,543       1,314,596
                                                                               ------------   ------------
         Total current assets ..............................................      2,119,715       2,267,374
                                                                               ------------   ------------

FIXED ASSETS:
 Furniture and fixtures ....................................................         11,547          11,547
 Machinery and equipment ...................................................         17,814          17,814
                                                                               ------------   ------------
                                                                                     29,361         29,361
                                                                               ------------   ------------
Less: accumulated depreciation .............................................         29,361          29,361
                                                                               ------------   ------------
                                                                               ------------   ------------
                                                                               ------------   ------------
OTHER ASSETS:
 Investment in convertible preferred stock (Note 3) ........................      4,221,490       4,221,490
 Advances to equity investee ...............................................        140,000         140,000
                     Due from affiliate (Note 4) ...........................      1,368,735       1,276,235    
 Security deposit                                                                        50              50
                                                                               ------------   ------------
                                                                                  5,730,275      5,637,775
                                                                               ------------   ------------
         Total assets ......................................................   $  7,849,990    $  7,905,149
                                                                               ============   ============

                                        LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 Accounts payable ..........................................................   $    427,940    $    429,283
 Accrued expenses and other liabilities ....................................         29,844          29,844
 Payroll taxes withheld and payable ........................................         23,682          23,682
                                                                               ------------   ------------
         Total current liabilities .........................................        481,466         482,809
                                                                               ------------   ------------
MINORITY INTEREST IN SUBSIDIARY (Note 2) ...................................             --              --
                                                                               ------------   ------------
         Total liabilities .................................................        481,466         482,809
                                                                               ------------   ------------
STOCKHOLDERS' EQUITY:
   Common stock, $.001 par value; 10,000,000
     shares authorized, 3,005,000 shares issued
   and outstanding .........................................................          3,005           3,005
  Additional paid-in capital ...............................................     13,102,005      13,102,005
 Retained earnings (Deficit) ...............................................     (5,736,486)     (5,682,670)
                                                                                ------------   ------------
                                                                                  7,368,524        7,422,340
                                                                                 -----------   ------------
         Total liabilities and stockholders' equity ........................   $  7,849,990    $  7,905,149
                                                                               ============   ============
</TABLE>

     The accompanying notes are an integral part of these consolidated financial
statements



<PAGE>
            MULTIMEDIA CONCEPTS INTERNATIONAL, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF PERATIONS
                                   (Unaudited)
<TABLE>
<CAPTION>



                                             Three Months Ended
                                            Dec 31,        Dec 31,            
                                            1997           1996

<S>                                         <C>            <C>      
REVENUES, net sales .....................   $   234,501    $      --
                                            -----------    -----------

COSTS AND EXPENSES:
 Cost of sales ..........................       128,547           --
 Operating expenses .....................       179,906        183,050
                                            -----------    -----------
                                                308,453        183,050
                                            -----------    -----------
OPERATING INCOME (LOSS) .................       (73,952)      (183,050)
                                            -----------    -----------
OTHER INCOME
 Interest income ........................        20,136         12,024
                                            -----------    -----------
INCOME (LOSS) BEFORE
  MINORITY INTERESTS ....................       (53,816)      (171,026)
   Minority interests (Note 2) ..........          --             --
                                            -----------    -----------

NET (LOSS) ..............................   $   (53,816)   $  (171,026)
                                            ===========    ===========


Basic and Diluted (loss) per common share   $     (.018)   $     (.057)
                                            ===========    ===========

Weighted average number of common shares
         outstanding ....................     3,005,000      3,005,000
                                            ===========    ===========
</TABLE>

     The accompanying notes are an integral part of these consolidated financial
statements



<PAGE>
             MULTIMEDIA CONCEPTS INTERNATIONAL, INC AND SUBSIDIARIES

                      CONSOLIDATED STATEMENT OF CASH FLOWS
                                   (Unaudited)
                           Increase (Decrease) in Cash
<TABLE>
<CAPTION>


                                                                     Three Months Ended
                                                                 December 31,  December 31,
                                                                 1997          1996
                                                                 -----         ----
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                             <C>            <C>         
Net loss ....................................................   $   (53,816)   $  (171,026)
                                                                 -----------    -----------
Adjustments to reconcile net loss to cash (used)
  provided for operating activities:
  Depreciation and amortization .............................          --            1,500
Changes in assets and liabilities:
Decrease in Accounts receivable .............................       348,823      1,191,510    
(Increase) in Merchandise inventories                              (27,338)          8,090
 Decrease in advances to supplier ...........................        60,000           --
(Decrease) in accounts payable ..............................        (1,343)       (35,550)
(Decrease) in accrued expenses and other liabilities ........          --           (1,813)
                                                                 -----------    -----------
         Total adjustments ..................................       380,142      1,163,737
                                                                 -----------    -----------

         Net cash provided by operating activities ..........       326,326        992,711
                                                                -----------    -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Reduction (increase) in loans receivable-officer ..........       825,053       (423,249)
                                                                -----------    -----------
         Net cash provided by( used for) investing activities       825,053       (423,249)
                                                                -----------    -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Loans received from (repaid to) affiliate .................       (92,500)        55,000
                                                                 -----------    -----------
         Net cash provided by (used for) financing activities       (92,500)        55,000
                                                                 -----------    -----------

NET INCREASE (DECREASE) IN CASH .............................     1,058,879        624,462
Cash, beginning of period ...................................        13,189        491,262
                                                                -----------    -----------
Cash, end of period .........................................   $ 1,072,068    $ 1,115,724
                                                                ===========    ===========

Supplemental disclosure of cash flow information:
Interest paid ...............................................   $      --      $      --
Taxes paid ..................................................   $      --      $      --
</TABLE>

     The accompanying notes are an integral part of these consolidated financial
statements




<PAGE>
            MULTIMEDIA CONCEPTS INTERNATIONAL, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)


 Note 1-          BASIS OF PRESENTATION:

                The accompanying  unaudited  consolidated  financial  statements
                have  been  prepared  in  accordance  with  generally   accepted
                accounting  principles for interim financial information and the
                instructions  to Form 10-QSB.  Accordingly,  they do not include
                all the information and footnotes required by generally accepted
                accounting principles for more complete financial statements. In
                the  opinion of  management,  the interim  financial  statements
                include  all  adjustments   considered   necessary  for  a  fair
                presentation of the Company's financial position and the results
                of its  operations for the three months ended December 31, 1997,
                and are not necessarily indicative of the results to be expected
                for the full fiscal year. For further information,  refer to the
                Company's Annual report on Form 10-KSB for the fiscal year ended
                September  30, 1997, as filed with the  Securities  and Exchange
                Commission.

                Note 2-             DESCRIPTION OF COMPANY:

                Multimedia  Concepts  International,  Inc. ("the  Company") is a
                Delaware  corporation which was organized in June 1994 under the
                name U.S.  Food  Corporation.  The  Company  changed its name to
                American  Eagle  Holdings  Corporation in April 1995 and then to
                its present name in June 1995. The Company was initially  formed
                as a holding  company for the  purpose of forming an  integrated
                clothing design,  manufacturing and distribution  operation.  In
                June 1994, the Company acquired 55% of the outstanding shares of
                common stock of American Eagle Industries Corp.,  which acquired
                100% of the  outstanding  shares of Match 11,  Inc.  The Company
                also acquired 34% of the issued and outstanding  common stock of
                Multi Media Publishing Corp. in June 1995.

                    In December 1996, the Company held a special  meeting of its
               shareholders who authorized the Company to sell or dispose of its
               shares in American Eagle  Industries  Corp. (and its' subsidiary,
               Match 11) or effect the dissolution  thereof.  These subsidiaries
               had ceased  operations  in September  1996.  In January  1997, in
               accordance  with  the  vote  of  its  shareholders,  the  Company
               terminated  its financing and business  relationships  with these
               subsidiaries.

                    In December  1996,  the  shareholders  also  authorized  the
               Company  to  dispose  of its 34%  interest  in an  unconsolidated
               subsidiary,  Multi Media Publishing Corp.,  which had no revenues
               or  operations.  In January 1997, in accordance  with the vote of
               its   shareholders,   the   Company   terminated   all   business
               relationships with this entity, but it intends to seek the return
               of certain funds it had advanced.

                    In  January  1997,  the  Company  formed a new  wholly-owned
               subsidiary,  U.S.  Apparel Corp.,  which is engaged in the design
               and   manufacture   of  a  line  of  T-shirts   and  other  tops,
               predominately  for men. U.S.  Apparel Corp.  began  operations in
               January 1997. U.S.  Apparel Corp. is the sole source of operating
               revenue for the Company for the three months  ended  December 31,
               1997.



<PAGE>
            MULTIMEDIA CONCEPTS INTERNATIONAL, INC. AND SUBSIDIAIRIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)



Note 3-           INVESTMENT IN PREFERRED STOCK:

                  The Company  has  reflected  its'  investment  in  convertible
                  preferred  stock in  accordance  with  Statement  of Financial
                  Standards No. 115- "Accounting for Certain Investments in Debt
                  and Equity  Securities".  This Standard  requires that certain
                  debt and equity  securities  be  adjusted to fair value at the
                  end of each accounting period.  Unrealized gains or losses for
                  securities  treated as available for sale securities are to be
                  charged or credited to a separate  component of  stockholders'
                  equity.  The Company determined that as of September 30, 1996,
                  the decline in the value of its investment in preferred  stock
                  was other than temporary,  and accordingly wrote down the cost
                  basis of this security to fair value.


                  Note 4-           DUE FROM AFFILIATE:

                         As of December 31, 1997, United Textiles and Toys Corp.
                    (formerly Mister Jay Fashion International,  Inc.) an entity
                    in which the  chief  operating  officer  is  President,  was
                    indebted to the Company in the aggregate of $1,368,735.  The
                    amount due from this  affiliate  as of  December 31 1996 was
                    $620,000.  The loans bear  interest at an annual rate of 8%.
                    The Company does  anticipate  full payment during the coming
                    year.


                  Note 5-           NEW ACCOUNTING PRONOUNCEMENT:

                  For the quarter ended December 31, 1997,  the Company  adopted
                  the provisions of Statement of Financial  Accounting Standards
                  No.  128,  "Earnings  per  Share".  Under this  Standard,  the
                  Company is  required to report  basic and  diluted  (loss) per
                  share.  Basic  earnings  (loss)  per  share is  calculated  by
                  dividing the net income (loss) for each period by the weighted
                  average number of common shares outstanding.  Diluted earnings
                  (loss)  per share is similar in  calculation  except  that the
                  weighted  average  number of common  shares  is  increased  to
                  reflect the effects of potential  additional shares that would
                  result from the exercise of stock options or other convertible
                  instruments.

                  For the three months ended  December 31, 1997 and 1996,  there
                  is no difference between basic and diluted earnings (loss) per
                  share as the  inclusion  of  additional  potential  shares  is
                  anti-dilutive due to the net loss presented in each period.









<PAGE>
            MULTIMEDIA CONCEPTS INTERNATIONAL, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)



                  Note 6-           SUBSEQUENT EVENTS:

                         On January 2, 1998,  the Company  was issued  3,571,429
                    shares of common  stock of United  Textiles  and Toys  Corp.
                    ("UTTC"), a company of which the Company's President is also
                    President,  Chief  Executive  Officer  and a  Director.  The
                    receipt of these common  shares at a price of $.28 per share
                    ($.01  above  the  closing   price  on  December  31,  1997)
                    represented  payment for $1,000,000 loaned by the Company to
                    UTTC. (see Note 4)

                         As a result of this transaction, the Company owns 78.5%
                    of  the   outstanding   shares  of  common  stock  of  UTTC,
                    effectively making UTTC a subsidiary of the Company. Because
                    UTTC owns 61% of the  outstanding  shares of common stock of
                    Play Co. Toys &  Entertainment  Corp.  ("Play Co"), thus the
                    Company  and  its  management  obtained  beneficial  vesting
                    control of Play Co.

                         On January 20, 1998, U.S. Stores Corp. ("U.S.  Stores")
                    acquired  1,465,000  shares of the  Company's  common stock.
                    U.S.  Stores was  incorporated  on November  10,  1997.  The
                    Company's  President is also  President and Director of U.S.
                    Stores.   After  this  transaction,   U.S.  Stores  held  an
                    aggregate of 1,868,000  shares of the Company's common stock
                    or 62.2% of the outstanding  shares,  effectively making the
                    Company a subsidiary of U.S. Stores.






<PAGE>
ITEM 2.           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION 
                  AND RESULTS OF OPERATIONS:

                  Results of Operations

                         Statements  contained  in  this  report  which  are not
                    historical   facts  may  be   considered   forward   looking
                    information  with  respect to plans,  projections  or future
                    performance  of the  Company  as defined  under the  Private
                    Securities  Litigation  Reform  Act of 1995.  These  forward
                    looking  statements  are subject to risks and  uncertainties
                    which could cause actual results to differ  materially  from
                    those projected.


                         Three  months ended  December 31, 1997  compared to the
                    three months ended December 31, 1996:

                         Sales for the three months ended December 31, 1997 were
                    $234,501 as compared to the three months ended  December 31,
                    1996 in  which  there  were  no  reportable  sales.  This is
                    reflective  of the start up of  operations  of the Company's
                    subsidiary  U.S.  Apparel  Corp.  in January  1997,  and the
                    cessation of operating  activities  of American  Eagle Corp.
                    and its subsidiary Match 11.

                         Cost of sales for the three months  ended  December 31,
                    1997 were  $128,501,  as compared to the three month  period
                    ended  December  31, 1996 in which  there were no  operating
                    activities,  due to the  cessation of operations of American
                    Eagle and Match 11. For the three months ended  December 31,
                    1997, cost of sales were 54.8% of sales.

                         Operating  expenses were $179,906 or 76.7% of sales for
                    the three  months ended  December  31,  1997.  For the three
                    months  ended  December 31, 1996,  operating  expenses  were
                    $183,050.

                         For the three  months  ended  December  31,  1997,  the
                    Company  reported a net loss of $53,816 as compared to a net
                    loss of  $171,026 in the three  months  ended  December  31,
                    1996, in which there were no reported operating revenues.

                         The basic  loss per share  for the three  months  ended
                    December  31,  1997 was  $(.018)  compared  to a net loss of
                    $(.057) per share in the comparable three month period ended
                    December 31, 1996.

                  Liquidity and Capital Resources

                         At December 31,  1997,  the Company  reported  cash and
                    cash   equivalents   of  $1,072,068,   working   capital  of
                    $1,638,249 and stockholders' equity of $7,368,524.

                         At September  30, 1997,  the Company  reported cash and
                    cash  equivalents of $13,189,  working capital of $1,784,565
                    and stockholders' equity of $7,422,340.
<PAGE>
PART II - OTHER INFORMATION

ITEM 1 - Legal Proceedings:  None

ITEM 2 - Changes in Securities: None

ITEM 3 - Defaults Upon Senior Securities: None

ITEM 4 - Submission of Matters to a Vote of Security Holders: None

ITEM 5 - Other Information:

     On January 2, 1998, the Company was issued 3,571,429 shares of common stock
of United  Textiles and Toys Corp.  ("UTTC"),  a company of which the  Company's
President is also President, Chief Executive Officer and a Director. The receipt
of these  common  shares at a price of $.28 per share  ($.01  above the  closing
price on December 31, 1997)  represented  payment for  $1,000,000  loaned by the
Company to UTTC.

     As a result of this transaction,  the Company owns 78.5% of the outstanding
shares of common  stock of UTTC,  effectively  making UTTC a  subsidiary  of the
Company. Because UTTC owns 61% of the outstanding shares of common stock of Play
Co. Toys & Entertainment  Corp. ("Play Co"), thus the Company and its management
obtained beneficial vesting control of Play Co.

     On January 20, 1998, U.S. Stores Corp. ("U.S.  Stores") acquired  1,465,000
shares of the Company's  common stock.  U.S. Stores was incorporated on November
10, 1997. The Company's President is also President and Director of U.S. Stores.
After this transaction, U.S. Stores held an aggregate of 1,868,000 shares of the
Company's common stock or 62.2% of the outstanding  shares,  effectively  making
the Company a subsidiary of U.S. Stores.

ITEM 6 - Exhibits and Reports on Form 8-K

         Exhibits:  None

         Reports on Form 8-K:  None







<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.

Dated:        February 27, 1998

                                         Multimedia Concepts International, Inc.
                                                                    (Registrant)


                                                     \s\ Ilan Arbel
                                                     Ilan Arbel
                                                     President


                                                     \s\ Allean Goode
                                                     Allean Goode
                                                     Treasurer