<PAGE>
 
                                    FORM 10-Q


                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

================================================================================

(Mark one)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934

For the thirteen week period ended May 3, 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 0-19536

                              THE RIGHT START, INC.
                              ---------------------
             (Exact name of registrant as specified by its charter)

         California                                       95-3971414
         ----------                                       ----------
(State or other jurisdiction of                        (I.R.S. Employer
 incorporation or organization)                       Identification No.)





             5334 Sterling Center Drive, Westlake Village, CA 91361
             ------------------------------------------------------
               (Address of principal executive offices) (Zip Code)

                                 (818) 707-7100
                                 --------------
              (Registrant's telephone number, including area code)


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

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X  No
                                      ---   ---

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

Capital Stock Outstanding as of May 3, 1997 - 8,593,639 shares
<PAGE>
 
                              THE RIGHT START, INC.

                               INDEX TO FORM 10-Q
                          FOR THE THIRTEEN WEEK PERIOD
                                ENDED MAY 3, 1997




                         PART I - FINANCIAL INFORMATION

Item 1.      Financial Statements (unaudited)

             Consolidated Balance Sheet                                3

             Consolidated Statement of Operations                      4

             Consolidated Statement of Cash Flows                      5

             Notes to Consolidated Financial Statements                6


Item 2.           Management's Discussion and Analysis of Financial
                  Condition and Results of Operations                  8


                           PART II - OTHER INFORMATION


SIGNATURES                                                             11
<PAGE>
 
                              THE RIGHT START, INC.
                                  BALANCE SHEET
                                   (unaudited)
<TABLE>
<CAPTION>
                                                                              May 3,          May 4,
                                                                               1997            1996
                                                                          -------------    ------------
<S>                                                                        <C>             <C>
ASSETS
Current assets:
      Cash                                                                 $    396,000    $    644,000
      Accounts receivable                                                       421,000         767,000
      Note receivable                                                           170,000               0
      Merchandise inventories                                                 7,388,000       5,721,000
      Prepaid catalog expenses                                                  819,000         958,000
      Deferred pre-opening costs, net                                           382,000         542,000
      Other current assets                                                    1,588,000       1,019,000
                                                                           ------------    ------------

             Total current assets                                            11,164,000       9,651,000
                                                                           ------------    ------------

Noncurrent assets:
      Property, plant and equipment, net                                     10,320,000       6,595,000
      Other non-current assets                                                   37,000         150,000
      Deferred income tax benefit                                             1,400,000       1,562,000
                                                                           ------------    ------------

             Total noncurrent assets                                         11,757,000       8,307,000
                                                                           ------------    ------------

                                                                           $ 22,921,000    $ 17,958,000
                                                                           ============    ============

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
      Accounts payable and accrued expenses                                $  6,229,000    $  2,671,000
      Accrued salaries and bonuses                                              356,000         122,000
      Advance payments on orders                                                 63,000          94,000
      Note payable                                                            1,964,000
                                                                           ------------    ------------

             Total current liabilities                                        8,612,000       2,887,000
                                                                           ------------    ------------


Note payable long term                                                        3,000,000
Convertible subordinated debentures                                           3,000,000
Deferred rent                                                                 1,794,000       1,026,000
                                                                           ------------    ------------

             Total long term liabilities                                      7,794,000       1,026,000
                                                                           ------------    ------------
Commitments and contingencies

Shareholders' equity:
      Common stock (25,000,000 authorized at no par value; 8,593,639 and                                
             7,939,306 issued and outstanding, respectively)                 18,281,000      16,250,000 
      Accumulated deficit
                                                                            (11,766,000)     (2,205,000)
                                                                           ------------    ------------

             Total shareholders' equity                                       6,515,000      14,045,000
                                                                           ------------    ------------

                                                                           $ 22,921,000    $ 17,958,000
                                                                           ============    ============

</TABLE>

                                       3
<PAGE>
 
                              THE RIGHT START, INC.
                      CONSOLIDATED STATEMENT OF OPERATIONS
                                   (unaudited)
<TABLE>
<CAPTION>
                                                     Thirteen weeks
                                                         Ended
                                             ----------------------------
                                                May 3,          May 4,
                                                1997             1996
                                             ------------    ------------
<S>                                          <C>             <C>
Net sales:
     Retail                                  $  7,414,000    $  5,212,000
     Catalog                                    2,522,000       5,610,000
                                             ------------    ------------
                                                9,936,000      10,822,000
Other revenues                                     73,000         161,000
                                             ------------    ------------

                                               10,009,000      10,983,000
                                             ------------    ------------

Costs and expenses:
     Cost of goods sold                         4,917,000       5,657,000
     Operating expense                          5,181,000       4,525,000
     General and administrative expense         1,063,000       1,043,000
     Pre-opening cost amortization                217,000          91,000
     Depreciation and amortization expense        394,000         250,000
                                             ------------    ------------

                                               11,772,000      11,566,000
                                             ------------    ------------

Operating loss                                 (1,763,000)       (583,000)
Interest and other income and expense, net       (205,000)       (490,000)
                                             ------------    ------------

Loss before income taxes                       (1,968,000)     (1,073,000)
Income tax provision (benefit)                     10,000        (519,000)
                                             ------------    ------------

Net loss                                     $ (1,978,000)   $   (554,000)
                                             ============    ============

Loss per share                               $      (0.23)   $      (0.08)
                                             ============    ============

Weighted average number of shares
     outstanding                                8,499,353       6,761,684
                                             ============    ============

</TABLE>

                                       4
<PAGE>
 
                              THE RIGHT START, INC.
                             STATEMENT OF CASH FLOWS
                                   (unaudited)

<TABLE>
<CAPTION>
                                                                             Thirteen weeks
                                                                                 Ended
                                                                       --------------------------
                                                                         May 3,         May 4,
                                                                          1997           1996
                                                                       -----------    -----------
<S>                                                                    <C>            <C>
Cash flows from operating activities:
       Net loss                                                        $(1,978,000)   $  (554,000)
       Adjustments to reconcile net income
         to net cash used in operating activities:
            Depreciation and amortization                                  611,000        341,000
            Change in assets and liabilities affecting
                operations                                                 515,000     (1,950,000)
                                                                       -----------    -----------

                Cash used in operating activities                         (852,000)    (2,163,000)
                                                                       -----------    -----------

Cash flows from investing activities:
       Additions to property, plant and equipment                         (873,000)    (1,012,000)
                                                                       -----------    -----------

                Cash used in investing activities                         (873,000)    (1,012,000)
                                                                       -----------    -----------

Cash flows from financing activities:
       Borrowings (repayments) under note payable to bank, net             488,000     (1,300,000)
       Proceeds from exercise of stock options                           1,320,000      4,978,000
                                                                       -----------    -----------

                Cash provided by financing activities                    1,808,000      3,678,000
                                                                       -----------    -----------


Net increase in cash                                                        83,000        503,000
Cash at beginning of period                                                313,000        141,000
                                                                       -----------    -----------

Cash at end of period                                                  $   396,000    $   644,000
                                                                       ===========    ===========

</TABLE>

                                       5
<PAGE>
 
                              THE RIGHT START, INC.
                NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


NOTE 1:  Description of Business and Significant Accounting Policies

The Right Start, Inc. is a leading merchant offering unique, high-quality
juvenile products for infants and young children. The Company markets its
products through its retail stores, located in major regional malls across the
nation, and through The Right Start Catalog.

Effective February 1, 1997, the Company changed its fiscal year end to the
Saturday closest to the last day of January. Previously, the Company reported on
a fiscal year ending the Saturday closest to the last day of May. This resulted
in a thirty-three week reporting period for the period June 2, 1997 through
February 1, 1997 (the "Transition Period").

There have been no changes in the Company's significant accounting policies as
set forth in the Company's consolidated financial statements for the Transition
Period. These unaudited consolidated financial statements as of May 3, 1997 and
for the thirteen week period then ended have been prepared in accordance with
generally accepted accounting principles for interim financial information.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments (consisting of normal recurring
adjustments) considered necessary for a fair presentation have been included.
Certain reclassifications have been made to conform prior year amounts to
current year presentation.

Operating results for the thirteen week period ended May 3, 1997 are not
necessarily indicative of the results that may be expected for the year ending
January 31, 1998.


NOTE 2:  PER SHARE DATA

Earnings per share is computed in accordance with the treasury stock method
based upon the weighted average number of common shares and dilutive common
stock equivalents outstanding. Common stock equivalents comprise stock options
outstanding to key executives, employees and directors.

In February 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 128, "Earnings Per Share" ("FAS 128"). FAS
128 is effective for the Company at January 31, 1998. The statement requires
that basic earnings per share ("EPS") be presented instead of primary EPS. It
also requires both basic and diluted EPS be presented on the face of the income
statement, if applicable, as well as additional disclosures on the components of
EPS. Had the Company adopted FAS 128 at May 3, 1997, there would be no effect on
the financial statements for the quarter then ended.

                                       6
<PAGE>
 
NOTE 3:  SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Interest paid amounted to $142,000 and $45,000 for the thirteen weeks ended May
3, 1997 and May 4, 1996, respectively. Cash paid for income taxes was $12,000
and $8,000 for the thirteen weeks ended May 3, 1997 and May 4, 1996,
respectively.

Changes in assets and liabilities which increased (decreased) cash and
equivalents are as follows:
<TABLE>
<CAPTION>
                                                Thirteen weeks ended
                                        ------------------------------------
                                            May 3,                   May 4,
                                             1997                     1996
                                        -----------             ------------
<S>                                     <C>                     <C>         
Accounts receivable                     $   517,000             $  (252,000)
Note receivable                              30,000
Merchandise inventories                     276,000                 (57,000)
Prepaid catalog expenses                    (37,000)               (112,000)
Deferred pre-opening costs                  (56,000)               (251,000)
Other current assets                       (324,000)                639,000
Other non-current assets                                            147,000
Deferred income tax benefit                                        (618,000)
Accounts payable and accrued expenses       154,000              (1,599,000)
Accrued salaries and bonuses               (161,000)               (377,000)
Advance payments on orders                   32,000                  16,000
Deferred rent                                84,000                 514,000
                                        -----------             -----------
                                        $  (515,000)            $(1,950,000)
                                        ===========             =========== 

</TABLE>

                                       7
<PAGE>
 
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS

           THIRTEEN WEEKS ENDED MAY 3, 1997 COMPARED WITH MAY 4, 1996

         Net sales for the thirteen weeks ended May 3, 1997 declined 8.2% to
$9,936,000 from $10,822,000 for the same period last year. For the quarter,
retail net sales increased 42.2% to $7,414,000 from $5,212,000 last year, while
catalog net sales decreased 55.0% to $2,522,000 from $5,610,000 last year. The
increase in retail net sales is due to an increase in stores to 38 at May 3,
1997, compared to 19 at May 4, 1996. The impact of the increased number of
stores was somewhat offset by the absence of heavy discounting and promotional
activities which were present in the prior year. The reduction in catalog net
sales is due to the Company's decision to significantly reduce circulation and
reposition the catalog to strategically support and complement the retail store
operations.

         Cost of goods sold decreased 13.1% to $4,917,000 from $5,657,000,
resulting in gross margin of 50.5% for the first quarter of fiscal 1997 compared
to 47.7% last year. Improved margins reflect the lack of promotional and sale
activity in this year versus the prior year.

         Operating expense increased 14.5% due to an increase of 19 stores in
operation, offset by reductions in catalog production costs due to the decrease
in the level of catalog circulation.

         General and administrative expense increased 1.9% or $20,000 as
compared to the first quarter of the prior year. The increase reflects
additional payroll incurred in staffing the merchandising and other corporate
departments to support the expanding retail chain, offset by the results of
successful cost savings efforts in other corporate overhead areas.

         Pre-opening cost amortization increased to $217,000 from $91,000 last
year, while depreciation and amortization increased to $394,000 from $250,000
due to the increase in the number of retail stores.

         Interest and other income and expense decreased to $205,000 from
$490,000 last year. Included in last year's reported amount were severance
charges of $450,000 incurred in conjunction with the resignation of the
Company's former chief executive officer. After consideration of this charge,
the remaining increase in the account reflects additional interest expense
incurred on borrowings under the Company's senior credit facility and
subordinated notes.

         The Company provided for state income tax expense in the current
quarter as compared to the prior year in which a benefit was recorded for
pre-tax losses.

         As a result of the above, the Company experienced a net loss of
$1,978,000 or $.23 per share, compared to a net loss of $554,000 or $.08 per
share last year.

                                       8
<PAGE>
 
LIQUIDITY AND CAPITAL RESOURCES

         During the quarter ended May 3, 1997, the Company's primary source of
liquidity was from borrowings under its $13,000,000 senior credit facility (the
"Credit Facility"). Borrowings under the Credit Facility funded cash used in
operations of $852,000 and in investing activities of $873,000. Capital
expenditures represent amounts incurred in the construction of new stores. The
Company opened one store during the quarter and another in May 1997.

         The Credit Facility consists of a $10,000,000 revolving line of credit
for working capital (the "Revolving Line") and a $3,000,000 capital expenditure
facility (the "Capex Line"). Availability under the Revolving Line is subject to
a defined borrowing base. As of May 3, 1997, borrowings of $1,964,000 and
$3,000,000 were outstanding under the Revolving Line and Capex Line,
respectively, and $1,603,000 was available under the Revolving Line. The Credit
Facility terminates on November 19, 1999 and on such date all borrowings
thereunder are immediately due and payable. Borrowings under the Credit Facility
are secured by substantially all of the Company's assets.

         The Credit Facility, as amended, requires the Company at all times to
maintain net worth (defined to include equity and subordinated debt) of at least
$8 million. The Credit Facility also limits the Company's losses from operations
to $1,850,000 and $2,250,000 during the quarters ending July 31, 1997 and
October 31, 1997, respectively. Thereafter, the Credit Facility requires the
Company's interest coverage (as defined therein) to be at least (I) 1.5 to 1.0
for the quarter ending January 31, 1998, (ii) 1.0 to 1.0 for the two quarter
period ending April 30, 1998, (iii) 1.5 to 1.0 for the three quarter period
ending July 31, 1998, and (iv) 2.0 to 1.0 for the four quarter period at the end
of each subsequent quarter. Interest coverage is defined in the Credit Facility
as EBITDA divided by interest expenses (each defined therein).

         Effective May 6, 1997, the Company raised $3,000,000 through the
issuance and sale of subordinated debt and warrants to purchase common stock to
a limited number of investors (some of whom are affiliates of the Company). The
subordinated notes bear interest at 11.5% and are due in full on May 6, 2000.
Warrants to purchase an aggregate of 475,000 shares of common stock at $3.00 per
share were issued in connection with the subordinated notes.

         The Company's ability to fund its operations, open new stores and
maintain compliance with the Credit Facility is dependent on its ability to
generate sufficient cash flow from operations. Historically, the Company has
incurred losses and expects to continue to incur losses in the near term.
Depending on the success of its business strategy, the Company may continue to
incur losses beyond such period. Losses could negatively affect working capital,
the extension of credit by the Company's suppliers and the Company's ability to
maintain compliance with its debt covenants.

                                       9
<PAGE>
 
                                     PART II

Item  6. Exhibits and Reports on Form 8-K

         The Company filed a Report of Form 8-K on March 5, 1997 reporting the
Company's change in fiscal year end to the Saturday closest to the last day of
January.

         The Company filed no other Reports of Form 8-K during the first quarter
of fiscal 1997.


The following exhibits of The Right Start, Inc. are included herein.

Exhibit
Number
---------

10.1     First Amendment to Convertible Debenture Purchase Agreement and
         Convertible Debenture between The Right Start, Inc. and Cahill Warnock
         Strategic Partners Fund, L.P. dated May 30, 1997

10.2     First Amendment to Convertible Debenture Purchase Agreement and
         Convertible Debenture between The Right Start, Inc. and Strategic
         Associates, L.P. dated May 30, 1997

27       Financial Data Schedule

                                       10
<PAGE>
 
                                   SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has caused this report to be signed on its behalf by the
undersigned and thereunto duly authorized.

                              THE RIGHT START, INC.



Date:  June 12, 1997                        /s/ Jerry Welch    
       -------------                       --------------------------   
                                           Jerry Welch                  
                                           Chief Executive Officer 

Date:  June 12, 1997                                           
       -------------                        /s/ Gina M. Shauer
                                           --------------------------   
                                           Gina M. Shauer
                                           Chief Financial Officer

                                       11