UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549


                                    FORM 10-Q


                   QUARTERLY REPORT UNDER SECTION 13 OR 15(D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                  FOR THE QUARTERLY PERIOD ENDED JULY 31, 2004
                         COMMISSION FILE NUMBER 0-19714


                              E COM VENTURES, INC.


               STATE OF FLORIDA           I.R.S. NO. 65-0977964

                            251 INTERNATIONAL PARKWAY
                             SUNRISE, FLORIDA 33325

                        TELEPHONE NUMBER: (954) 335-9100


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  BY CHECK MARK  WHETHER  THE  REGISTRANT  IS AN  ACCELERATED  FILER (AS
DEFINED IN RULE 12B-2 OF THE EXCHANGE ACT).  YES |_|   NO |X|

AS OF SEPTEMBER 10, 2004,  THE  REGISTRANT  HAD  2,884,201  SHARES OF ITS COMMON
STOCK, $0.01 PAR VALUE, OUTSTANDING.


                                      -1-
<PAGE>

                                TABLE OF CONTENTS

                      E COM VENTURES, INC. AND SUBSIDIARIES

                                     PART I
                              FINANCIAL INFORMATION

ITEM 1     FINANCIAL STATEMENTS (unaudited)....................................3

           Consolidated Condensed Balance Sheets...............................3
           Consolidated Condensed Statements of Operations.....................4
           Consolidated Condensed Statements of Cash Flows.....................5
           Notes to Consolidated Condensed Financial Statements................6

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

ITEM 3     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
           MARKET RISKS.......................................................12

ITEM 4     CONTROLS AND PROCEDURES............................................12



                                     PART II
                                OTHER INFORMATION

ITEM 1     LEGAL PROCEEDINGS..................................................12

ITEM 2     CHANGES IN SECURITIES, USE OF PROCEEDS AND ISSUER PURCHASES OF
           EQUITY SECURITIES..................................................12

ITEM 3     DEFAULTS UPON SENIOR SECURITIES....................................13

ITEM 4     SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS................13

ITEM 5     OTHER INFORMATION..................................................13

ITEM 6     EXHIBITS AND REPORTS ON FORM 8-K...................................13

SIGNATURES ...................................................................14

CERTIFICATIONS................................................................15


                                      -2-
<PAGE>

PART I.           FINANCIAL INFORMATION
ITEM 1.           FINANCIAL STATEMENTS

                      E COM VENTURES, INC. AND SUBSIDIARIES
                      CONSOLIDATED CONDENSED BALANCE SHEETS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
ASSETS:                                                                    JULY 31, 2004            JANUARY 31, 2004
                                                                         ---------------            ----------------

<S>                                                                      <C>                        <C>
Current assets:
Cash and cash equivalents                                                $     1,620,225            $      1,961,310
Trade receivables, net                                                         2,077,216                     777,186
Advances to suppliers                                                            120,484                     114,041
Inventories                                                                   80,776,704                  60,877,451
Prepaid expenses and other current assets                                      1,705,341                   1,347,452
Notes and interest receivable from shareholder and officers                           --                     327,311
                                                                         ---------------            ----------------
  Total current assets                                                        86,299,970                  65,404,751

Property and equipment, net                                                   23,545,295                  24,414,624
Goodwill                                                                       1,904,448                   1,904,448
Other assets, net                                                              1,044,364                     739,575
                                                                         ---------------            ----------------
  Total assets                                                           $   112,794,077            $     92,463,398
                                                                         ===============            ================

LIABILITIES AND SHAREHOLDERS' EQUITY:

Current liabilities:
Bank line of credit                                                      $    40,041,614            $     30,472,027
Accounts payable, non-affiliates                                              16,052,411                  16,459,786
Accounts payable, affiliates                                                  29,154,385                  17,440,492
Accrued expenses and other liabilities                                         5,653,264                   9,614,287
Subordinated note payable, affiliate                                           5,000,000                     250,000
Current portion of obligations under capital leases                              268,682                     258,700
                                                                         ---------------            ----------------
  Total current liabilities                                                   96,170,356                  74,495,292

Long-term portion of obligations under capital leases                          8,069,020                   7,746,262
                                                                         ---------------            ----------------
  Total liabilities                                                          104,239,376                  82,241,554
                                                                         ---------------            ----------------

Commitments and contingencies (see Note 6)

Shareholders' equity:
Preferred stock, $.10 par value, 1,000,000
   shares authorized, none issued                                                     --                          --
Common stock, $.01 par value, 6,250,000 shares
   authorized; 3,782,450 and 3,285,758 shares issued
   in fiscal years 2004 and 2003, respectively                                    37,825                      32,858
Additional paid-in capital                                                    75,161,296                  73,666,193
Treasury stock, at cost, 898,249 shares                                       (8,576,944)                 (8,576,944)
Accumulated deficit                                                          (58,067,476)                (54,900,263)
                                                                         ---------------            ----------------
  Total shareholders' equity                                                   8,554,701                  10,221,844
                                                                         ---------------            ----------------
  Total liabilities and shareholders' equity                             $   112,794,077            $     92,463,398
                                                                         ===============            ================
</TABLE>

     See accompanying notes to consolidated condensed financial statements.


                                      -3-
<PAGE>

                      E COM VENTURES, INC. AND SUBSIDIARIES
                 CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                          THIRTEEN WEEKS       THIRTEEN WEEKS       TWENTY-SIX WEEKS    TWENTY-SIX WEEKS
                                              ENDED                 ENDED                 ENDED               ENDED
                                          JULY 31, 2004        AUGUST 2, 2003        JULY 31, 2004       AUGUST 2, 2003
                                          --------------       --------------       --------------       ---------------

<S>                                       <C>                  <C>                  <C>                  <C>
Net sales                                 $   48,470,731       $   50,747,969       $   92,042,197       $   87,635,798
Cost of goods sold                            27,602,927           30,175,240           53,669,507           50,247,576
                                          --------------       --------------       --------------       --------------
Gross profit                                  20,867,804           20,572,729           38,372,690           37,388,222
                                          --------------       --------------       --------------       --------------

Operating expenses:
  Selling, general and administrative         19,092,761           19,618,635           37,042,226           37,457,751
  Depreciation and amortization                1,480,585            1,469,397            3,032,897            2,924,138
                                          --------------       --------------       --------------       --------------
    Total operating expenses                  20,573,346           21,088,032           40,075,123           40,381,889
                                          --------------       --------------       --------------       --------------

Income (loss) from operations                    294,458             (515,303)          (1,702,433)          (2,993,667)
Interest expense, net                           (824,123)            (408,537)          (1,464,780)            (860,320)
                                          --------------       --------------       --------------       --------------
Net loss                                  $     (529,665)      $     (923,840)      $   (3,167,213)      $   (3,853,987)
                                          ==============       ==============       ==============       ==============

Net loss per common share:
  Basic                                   $        (0.18)      $        (0.37)      $        (1.15)      $        (1.56)
                                          ==============       ==============       ==============       ==============
  Diluted                                 $        (0.18)      $        (0.37)      $        (1.15)      $        (1.56)
                                          ==============       ==============       ==============       ==============

Weighted average number of common
  shares outstanding:
  Basic                                        2,866,544            2,493,562            2,758,348            2,476,307
                                          ==============       ==============       ==============       ==============
  Diluted                                      2,866,544            2,493,562            2,758,348            2,476,307
                                          ==============       ==============       ==============       ==============
</TABLE>

     See accompanying notes to consolidated condensed financial statements.


                                      -4-
<PAGE>

                      E COM VENTURES, INC. AND SUBSIDIARIES
                 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                            TWENTY-SIX WEEKS ENDED     TWENTY-SIX WEEKS ENDED
                                                                JULY 31, 2004              AUGUST 2, 2003
                                                            ----------------------     ----------------------

<S>                                                           <C>                         <C>
Cash flows from operating activities:
Net loss                                                      $     (3,167,213)           $     (3,853,987)
Adjustments to reconcile net loss to net cash (used in)
    provided by operating activities:
Provision for impairment of assets and store closing                    55,328                     180,172
Realized loss on investment                                                 --                       3,880
Depreciation and amortization                                        3,032,897                   2,924,138
Change in operating assets and liabilities:
    Trade receivables                                               (1,300,030)                   (804,600)
    Advances to suppliers                                               (6,443)                    311,080
    Inventories                                                    (19,899,253)                  1,900,622
    Prepaid expenses and other current assets                         (357,889)                    116,224
    Other assets                                                      (420,898)                     80,533
    Accounts payable, non-affiliates                                  (407,375)                 (3,786,008)
    Accounts payable, affiliates                                    11,463,893                   5,521,285
    Accrued expenses and other liabilities                          (3,961,023)                    383,872
                                                              ----------------            ----------------
Net cash (used in) provided by operating activities                (14,968,006)                  2,977,211
                                                              ----------------            ----------------

Cash flows from investing activities:
Additions to property and equipment                                 (1,639,262)                 (4,151,188)
Proceeds from sale of investments                                           --                       3,120
                                                              ----------------            ----------------
Net cash used in investing activities                               (1,639,262)                 (4,148,068)
                                                              ----------------            ----------------

Cash flows from financing activities:
Net borrowings under bank line of credit                             9,569,587                   2,894,492
Repayment of notes payable                                                  --                     (31,860)
Principal payments under capital lease obligations                    (130,785)                   (266,852)
Proceeds (advances) from notes and interest receivable,
     shareholder and officer                                           327,311                      (7,854)
Proceeds from subordinated note payable, affiliate                   5,000,000                          --
Repayment of convertible notes payable                                      --                  (1,000,000)
Exercise of stock options                                            1,500,070                     110,271
Purchases of treasury stock                                                 --                    (111,595)
                                                              ----------------            ----------------
    Net cash provided by financing activities                       16,266,183                   1,586,602
                                                              ----------------            ----------------
(Decrease) increase in cash and cash equivalents                      (341,085)                    415,745
Cash and cash equivalents at beginning of period                     1,961,310                   2,964,645
                                                              ----------------            ----------------
Cash and cash equivalents at end of period                    $      1,620,225            $      3,380,390
                                                              ================            ================
</TABLE>

     See accompanying notes to consolidated condensed financial statements.


                                      -5-
<PAGE>

                      E COM VENTURES, INC. AND SUBSIDIARIES
              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE 1 -  OPERATIONS AND BASIS OF PRESENTATION


       E Com Ventures,  Inc., a Florida corporation  ("ECOMV"),  performs all of
its  operations  through  two  wholly-owned   subsidiaries,   Perfumania,   Inc.
("Perfumania"),  a  Florida  corporation,  which  is a  specialty  retailer  and
wholesaler  of  fragrances  and  related  products,  and  perfumania.com,  Inc.,
("perfumania.com"),  a Florida  corporation,  which is an  Internet  retailer of
fragrances and other specialty items.

       Perfumania is a leading specialty retailer and wholesale distributor of a
wide range of brand name and designer fragrances. Perfumania sells fragrances at
discounted  prices up to 75% below the  manufacturers'  suggested retail prices.
Perfumania's  wholesale division distributes  fragrances and related products to
other   wholesale   distributors   throughout   North   America  and   overseas.
Perfumania.com offers a selection of our more popular products for sale over the
Internet and serves as an  alternative  shopping  experience  to the  Perfumania
shopping experience.  The number of retail stores in operation at July 31, 2004,
and August 2, 2003, were 231 and 234, respectively.

       The consolidated  condensed financial  statements include the accounts of
ECOMV and subsidiaries (collectively,  the "Company"). All material intercompany
balances and transactions have been eliminated in consolidation.

       Effective  January 30, 2004, Ilia Lekach,  the Company's then Chairman of
the Board and Chief Executive  Officer,  and several other parties controlled by
Mr. Lekach and his wife Deborah Lekach  (collectively,  "Lekach"),  entered into
the Nussdorf  Option  Agreement,  with Stephen  Nussdorf and Glenn Nussdorf (the
"Nussdorfs"), pursuant to which the Nussdorfs were granted options to acquire up
to an aggregate 720,954 shares of the Company's common stock  beneficially owned
by Lekach,  for a purchase price of $12.70 per share, with the acquisition price
to be paid in specified installments.

       As of May 10, 2004, Mr. Lekach had exercised his options from the Company
to acquire  443,750  shares and the  Nussdorfs  had acquired all 720,954  shares
pursuant to the  Nussdorf  Option  Agreement.  In  accordance  with the Nussdorf
Option  Agreement,  the  Nussdorfs  own an aggregate of 1,128,144  shares of the
Company's common stock or approximately 39% of the total number of shares of the
Company's common stock outstanding.

       As of  July  31,  2004,  the  Company  has  a  seasonal  working  capital
deficiency of approximately  $9.9 million,  cash balances of approximately  $1.6
million and additional borrowing capacity of $6.8 million under its bank line of
credit.  Management  believes that the cash  balances,  the available  borrowing
capacity  under its  three-year  line of credit (see Note 3), and the  projected
future  operating  results  will  generate  sufficient  liquidity to support the
Company's needs for the next twelve months;  however,  there can be no assurance
that management's plans will be successful.  Management is currently  discussing
the possible conversion of the outstanding $5 million subordinated note payable,
affiliate  to a long-term  note with the holders of the note.  If the Company is
unable to  generate  sufficient  cash  flows  from  operations  in the future to
service its  obligations,  the Company could face liquidity and working  capital
constraints, which could adversely impact future operations and growth.

       The accompanying  unaudited  consolidated  condensed financial statements
have  been  prepared  in  accordance  with  the  rules  and  regulations  of the
Securities and Exchange  Commission  (the "SEC").  Certain  information and note
disclosures  normally  included  in annual  financial  statements,  prepared  in
accordance with accounting principles generally accepted in the United States of
America, have been condensed or omitted pursuant to those rules and regulations.
The financial information presented herein, which is not necessarily  indicative
of results to be expected for the current fiscal year,  reflect all  adjustments
which,  in the opinion of management,  are necessary for a fair  presentation of
the  interim  unaudited  consolidated  condensed  financial  statements.  It  is
suggested  that these  consolidated  condensed  financial  statements be read in
conjunction with the financial  statements and the notes thereto included in our
Annual Report on Form 10-K for the fiscal year ended January 31, 2004 filed with
the SEC on May 17, 2004, and as amended on May 18, 2004 and June 1, 2004.


                                       -6-
<PAGE>

RECLASSIFICATION

       Certain fiscal year 2003 amounts have been  reclassified  to conform with
the fiscal year 2004 presentation.

NOTE 2 -  ACCOUNTING FOR STOCK-BASED COMPENSATION

       The Company  accounts for  stock-based  compensation  using the intrinsic
value  method  prescribed  in  Accounting   Principles  Board  Opinion  No.  25,
"Accounting  for Stock Issued to Employees"  ("APB 25"),  and provides  proforma
disclosure  of net income  (loss) and  earnings  (loss) per share as if the fair
value based method prescribed by Statement of Financial Accounting Standards No.
123 "Accounting for Stock-Based Compensation," ("SFAS 123") as amended, had been
applied in measuring  compensation  expense for options granted to employees and
directors.  In accordance  with APB 25,  compensation  cost for stock options is
measured as the  excess,  if any, of the quoted  market  price of the  Company's
stock at the date of the grant over the amount an employee or director  must pay
to acquire the stock. Had compensation  cost for options granted been determined
in accordance with the fair value  provisions of SFAS No. 123, the Company's net
loss and net loss per share would have been  increased to the  proforma  amounts
presented below.

<TABLE>
<CAPTION>
                                               THIRTEEN WEEKS        THIRTEEN WEEKS       TWENTY-SIX WEEKS      TWENTY-SIX WEEKS
                                                   ENDED                 ENDED                 ENDED                  ENDED
                                               JULY 31, 2004         AUGUST 2, 2003        JULY 31, 2004         AUGUST 2, 2003
                                               -------------         --------------       ----------------      ----------------

<S>                                            <C>                   <C>                   <C>                   <C>
Net loss as reported                           $    (529,665)        $    (923,840)        $  (3,167,213)        $  (3,853,987)

Add: Total fair value of stock based
  employee compensation expense not included
  in reported net loss, net                           (6,357)              (74,923)              (18,529)             (219,168)
                                               -------------         -------------         -------------         -------------


Proforma net loss                              $    (536,022)        $    (998,763)        $  (3,185,742)        $  (4,073,155)
                                               =============         =============         =============         =============

Proforma net loss per share:

  Basic                                        $       (0.18)        $       (0.40)        $       (1.15)        $       (1.64)
                                               =============         =============         =============         =============
  Diluted                                      $       (0.18)        $       (0.40)        $       (1.15)        $       (1.64)
                                               =============         =============         =============         =============
</TABLE>

NOTE 3  - BANK LINE OF CREDIT

       On May 12,  2004,  the  Company  entered  into a  three-year  amended and
restated senior secured  revolving credit facility with GMAC Commercial  Finance
LLC and Congress  Financial  Corporation  which provides for borrowings of up to
$60 million and supports normal working capital  requirements  and other general
corporate  needs.  Advances  under the line of credit  are based on a formula of
eligible  inventories  and bear  interest  depending on the Company's  financial
ratios  ranging  from (a) prime to prime  plus  1.25% or (b) LIBOR plus 2.50% to
3.75%.  Borrowings are secured by a first lien on all assets of Perfumania.  The
credit  facility  contains   limitations  on  additional   borrowings,   capital
expenditures and other items, and contains various  covenants  including a fixed
charge coverage ratio and minimum EBITDA amounts as defined.  Approximately $6.8
million was available under the credit facility as of July 31, 2004.

       On  March  9,  2004,  Glen  and  Stephen  Nussdorf  ("Nussdorfs")  made a
$5,000,000 subordinated secured demand loan to Perfumania. The demand loan bears
interest at the prime rate plus 1%, requires  quarterly interest payments and is
secured by a security  interest in  Perfumania's  assets  pursuant to a Security
Agreement,  by and among  Perfumania and the Nussdorfs.  There are no prepayment
penalties and the loan is subordinate to all bank related indebtedness.


                                      -7-
<PAGE>

NOTE 4    - BASIC AND DILUTED LOSS PER COMMON SHARE

       Basic loss per common share has been computed by dividing net loss by the
weighted average number of common shares  outstanding during the period. For all
periods  presented in the  accompanying  consolidated  condensed  statements  of
operations,  incremental  shares  attributed  to  outstanding  stock options and
convertible notes were not included because the results would be anti-dilutive.

NOTE 5 - COMPREHENSIVE INCOME (LOSS)

       Comprehensive   income  (loss)   represents  all  non-owner   changes  in
shareholders' equity and consists of the following:

<TABLE>
<CAPTION>
                                       THIRTEEN WEEKS     THIRTEEN WEEKS     TWENTY-SIX WEEKS   TWENTY-SIX WEEKS
                                            ENDED              ENDED               ENDED              ENDED
                                       JULY 31, 2004      AUGUST 2, 2003      JULY 31, 2004      AUGUST 2, 2003
                                       -------------      -------------      ---------------    ----------------

<S>                                    <C>                <C>                <C>                <C>
Net loss                               $    (529,665)     $    (923,840)     $  (3,167,213)     $  (3,853,987)

Other comprehensive loss -
  net unrealized loss on investments              --            (56,573)                --            (36,516)
                                       -------------      -------------      -------------      -------------

  Total comprehensive loss             $    (529,665)     $    (980,413)     $  (3,167,213)     $  (3,890,503)
                                       =============      =============      =============      =============
</TABLE>

NOTE 6 - CONTINGENCIES

       The Company is involved in legal  proceedings  in the ordinary  course of
business. Management believes that the Company has meritorious defenses and that
the ultimate  resolution  of these  matters  should not have a material  adverse
effect on the Company's  financial  position or result of  operations;  however,
management cannot presently predict the outcome of these matters.

NOTE 7 - RELATED PARTY TRANSACTIONS

       Parlux Fragrances,  Inc. ("Parlux") owns 378,102 shares, or approximately
13%, of the Company's  outstanding common stock. The Nussdorfs own approximately
39% of the  Company's  outstanding  common  stock  and  they  are  officers  and
principals of Quality King  Distributors,  Inc.  ("Quality King").  Purchases of
product from these related  parties were  approximately  $38.1 million and $11.2
million  for  the  first   twenty-six  weeks  of  fiscal  years  2004  and  2003
respectively,  representing  approximately  52%  and  23% of the  Company  total
purchases,  respectively. The amount due to related parties at July 31, 2004, is
approximately  $29.2 million and is included in accounts payable,  affiliates in
the accompanying consolidated condensed balance sheets.

       Sales of wholesale  merchandise  to Quality King were approximately  $6.7
million and $2.6 million for the first twenty-six weeks of fiscal years 2004 and
2003,  respectively.  Amounts  due  from  Quality  King  at  July  31,  2004 are
approximately  $0.9  million and is included  in trade  receivables,  net in the
accompanying consolidated condensed balance sheets.


                                      -8-
<PAGE>

NOTE 8 - NON CASH TRANSACTIONS

Supplemental  disclosures of non-cash investing and financing  activities are as
follows:

<TABLE>
<CAPTION>
                                                         FOR THE TWENTY-SIX WEEKS ENDED
                                                     ---------------------------------------
                                                       JULY 31, 2004        AUGUST 2, 2003
                                                     ---------------------------------------

<S>                                                    <C>                   <C>
Building under capital lease                           $     463,525         $          --
Decrease in accounts payable in exchange for
     subordinated notes payable - affiliate                       --             5,000,000
Unrealized loss on investments available for sale                 --               (36,516)
Cash paid during the period for:
     Interest                                          $   1,351,084         $     905,217
</TABLE>

NOTE 9 - SEGMENT INFORMATION

       The Company operates in two industry segments, specialty retail sales and
wholesale distribution of fragrances and related products. Financial information
for these segments is summarized in the following table.

<TABLE>
<CAPTION>
                                       THIRTEEN WEEKS      THIRTEEN WEEKS      TWENTY-SIX WEEKS     TWENTY-SIX WEEKS
                                            ENDED               ENDED                ENDED                ENDED
                                       JULY 31, 2004       AUGUST 2, 2003       JULY 31, 2004        AUGUST 2, 2003
                                       --------------      --------------      ----------------     ----------------

<S>                                    <C>                 <C>                  <C>                 <C>
Net sales to external customers:
     Retail                            $   44,884,432      $   46,205,443       $   83,083,089      $   82,344,431
     Wholesale                              3,586,299           4,542,526            8,959,108           5,291,367
                                       --------------      --------------       --------------      --------------
                                       $   48,470,731      $   50,747,969       $   92,042,197      $   87,635,798
                                       ==============      ==============       ==============      ==============

Gross profit:
     Retail                            $   20,673,744      $   20,071,659       $   37,824,145      $   36,749,967
     Wholesale                                194,060             501,070              548,545             638,255
                                       --------------      --------------       --------------      --------------
                                       $   20,867,804      $   20,572,729       $   38,372,690      $   37,388,222
                                       ==============      ==============       ==============      ==============
</TABLE>

ITEM 2.           MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED FINANCIAL
                  CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS

COMPARISON  OF THE THIRTEEN  WEEKS ENDED JULY 31, 2004 WITH THE  THIRTEEN  WEEKS
ENDED AUGUST 2, 2003.

       Net sales  decreased 4% from $50.7  million in the  thirteen  weeks ended
August 2, 2003 to $48.5 million in the thirteen  weeks ended July 31, 2004.  The
decrease in sales was due to a decrease  in  Perfumania's  wholesale  sales from
$4.5 million in the  thirteen  weeks ended August 2, 2003 to $3.6 million in the
thirteen  weeks  ended July 31,  2004.  In  addition  there was a 3% decrease in
Perfumania's  retail  sales due to a reduction  in the average  number of stores
opened,  along with higher sales  prices which  resulted in a 7% decrease in the
number of  customer  transactions.  The Company  decided to increase  its retail
sales  prices,  which  resulted  in a  3%  increase  in  retail  gross  margins.
Perfumania's  comparable  store sales  decreased 3% in the thirteen  weeks ended
July 31, 2004.  Comparable  store sales measure sales from stores that have been
open for a year or more.  During the  thirteen  weeks ended July 31,  2004,  the
average  number of  stores  operated  was 231  versus  235 in the  prior  year's
comparable  period. All wholesale sales during the second quarter of fiscal 2004
were made to Quality King.


                                      -9-
<PAGE>

       Gross profit  increased 1% from $20.6 million in the thirteen weeks ended
August 2, 2003 (40.5% of total net sales) to $20.9 million in the thirteen weeks
ended July 31, 2004 (43.1% of total net sales). The increase in gross profit was
due to the higher sale prices on retail  sales and the  reduction  in  wholesale
sales which realize lower gross profits.

       Selling,  general and  administrative  expenses  decreased  3% from $19.6
million  in the  thirteen  weeks  ended  August 2, 2003 to $19.1  million in the
thirteen weeks ended July 31, 2004. The decrease was attributable to lower store
payroll  and  employee  related  costs  compared  with  2003.  Depreciation  and
amortization  was  approximately  $1.5 million in both the thirteen  weeks ended
July 31, 2004 and August 2, 2003.

       As a result of the  foregoing,  our income  from  operations  during this
period  was $0.3  million  compared  to a loss from  operations  of $0.5 for the
corresponding period of 2003.

      Interest  expense,  net was  approximately  $0.4  million for the thirteen
weeks ended August 2, 2003 compared with $0.8 million in for the thirteen  weeks
ended July 31,  2004.  The  increase  in  interest  expense  was due to interest
incurred on the capital lease for our corporate office and  distribution  center
to which we relocated  during the second  quarter of fiscal 2003, in addition to
higher interest rates and higher average borrowings for the thirteen weeks ended
July 31, 2004 versus the comparable period of 2003.

       As a result of the  foregoing,  our net loss was  ($0.9)  million  in the
thirteen  weeks ended August 2, 2003 compared to a net loss of ($0.5) million in
the  thirteen  weeks ended July 31,  2004.  Net loss per share for the  thirteen
weeks ended in 2003 and 2004 was ($0.37) and ($0.18), respectively.

COMPARISON OF THE TWENTY-SIX WEEKS ENDED JULY 31, 2004 WITH THE TWENTY-SIX WEEKS
ENDED AUGUST 2, 2003.

      Net sales  increased 5% from $87.6 million in the  twenty-six  weeks ended
August 2, 2003 to $92.0 million in the twenty-six weeks ended July 31, 2004. The
increase in sales was primarily due to a 69% increase in Perfumania's  wholesale
sales and a 1%  increase  in  retail  sales.  The  increase  in retail  sales is
attributable to an increase in Perfumania's  comparable store sales of 2% in the
first twenty-six weeks of fiscal 2004. Comparable store sales measure sales from
stores that have been open for a year or more. During the twenty-six weeks ended
July 31, 2004, the average  number of stores  operated was 231 versus 237 in the
prior year's comparable period.

       Gross profit  increased  3% from $37.4  million in the  twenty-six  weeks
ended  August  2,  2003  (42.7% of total  net  sales)  to $38.4  million  in the
twenty-six weeks ended July 31, 2004 (41.7% of total net sales). As a percentage
of net sales, gross profit in the twenty-six weeks ended July 31, 2004 decreased
versus  the  twenty-six  weeks  ended  August 2, 2003,  due to larger  number of
wholesale  transactions for the  corresponding  period in 2004 compared to 2003.
The  Company,  through its  supplier  relationships,  is able to obtain  certain
merchandise at better prices and quantities  than Quality King.  Wholesale sales
yield lower margins than retail sales.

       Selling,  general and  administrative  expenses  decreased  1% from $37.5
million in the  twenty-six  weeks ended  August 2, 2003 to $37.0  million in the
twenty-six  weeks ended July 31, 2004.  The decrease was  attributable  to lower
payroll  and  employee  related  costs  compared  with  2003.  Depreciation  and
amortization was  approximately  $3.0 million in the twenty-six weeks ended July
31, 2004 and $2.9 million in the twenty-six weeks ended August 2, 2003.

       Interest expense,  net was approximately  $0.9 million for the twenty-six
weeks ended August 2, 2003 compared with $1.5 million in the  comparable  period
of 2004.  The increase in interest  expense was due to interest  incurred on the
capital  lease of our  corporate  office  and  distribution  center  to which we
relocated  during  the second  quarter of fiscal  2003,  in  addition  to higher
interest rates and higher average borrowings for the twenty-six weeks ended July
31, 2004 versus the comparable period of 2003.

       As a result of the foregoing,  our net loss decreased from ($3.9) million
in the twenty-six weeks ended August 2, 2003, to a net loss of ($3.2) million in
the twenty-six  weeks ended July 31, 2004. Net loss per share for the twenty-six
weeks  ended  August  2,  2003 and  July  31,  2004  was  ($1.56)  and  ($1.15),
respectively.


                                      -10-
<PAGE>

LIQUIDITY AND CAPITAL RESOURCES

       Our principal  capital  requirements are to fund  Perfumania's  inventory
purchases,  renovate existing stores,  and selectively open new stores.  For the
first twenty-six weeks of fiscal 2004, these capital requirements generally were
satisfied through borrowings under our credit facility.

       At July 31, 2004, we had a working  capital  deficiency of  approximately
$9.9 million  compared to a working  capital  deficiency of  approximately  $9.1
million at January 31,  2004.  The increase  was  primarily  due to the net loss
during the current period.

      Net cash used in  operating  activities  during  the  current  period  was
approximately $15.0 million compared with approximately $3.0 million provided by
operating activities for the same period in the prior year. The increase in cash
used in operating  activities  was primarily due to a $19.9 million  increase in
inventories  resulting  from  management's  decisions to increase the levels and
assortment of product  offerings in the stores. In addition there was a decrease
in accrued  expenses of $4.0 million  resulting from payments made in connection
with a change in  management  control,  offset by a $11.5  million  increase  in
accounts payable as a result of the increased inventory purchases.  With respect
to purchases of inventory from related parties,  the Company believes that those
purchases are at prices and/or on terms generally better than would otherwise be
available from third parties.

       Net cash used in investing  activities was approximately  $1.6 million in
the  twenty-six  weeks  ended July 31,  2004,  compared  to $4.1  million in the
twenty-six weeks ended August 2, 2003.  Investing  activities represent spending
for the renovation of existing stores and new store openings. Approximately $1.1
million of the $4.1 million used in investing activities in the twenty-six weeks
ended  August  2,  2003 was  attributable  to the  relocation  of the  Company's
corporate  office  and  distribution  center to  Sunrise,  Florida in the second
quarter of the fiscal year 2003.

       Net cash provided by financing  activities  during the current period was
approximately  $16.3 million  compared with  approximately  $1.6 million for the
same period in the prior year.  The  increase was due  primarily  to  borrowings
under our bank line of credit to fund  inventory  purchases  and $5  million  in
proceeds from a subordinated note payable to an affiliate.

       Perfumania's senior secured credit facility,  with GMAC Commercial Credit
LLC and Congress  Financial  Corporation,  provides for  borrowings of up to $60
million, of which approximately $6.8 million was available at July 31, 2004, and
supports  normal  working  capital  requirements  and  other  general  corporate
purposes.  Advances  under the line of credit are based on a formula of eligible
inventories  and bears  interest  depending on the  Company's  financial  ratios
ranging  from (a) prime to prime  plus  1.25% or (b) LIBOR  plus  2.50% - 3.75%.
Borrowings are secured by a first lien on all assets of  Perfumania.  The credit
facility contains limitations on additional borrowings, capital expenditures and
other items, and contains various covenants including maintenance of minimum net
worth,  and certain key ratios,  as defined by the lender.  As of July 31, 2004,
Perfumania was in compliance with its covenant requirements.

       We believe our cash balances,  our available  borrowing  capacity and our
projected future operating results will generate sufficient liquidity to support
our working capital and capital  expenditures  needs for the next twelve months;
however,  there can be no  assurance  that our plans  and  expectations  will be
successful.  Management is currently  discussing the possible  conversion of the
outstanding $5 million subordinated note payable,  affiliate to a long-term note
with the holders of the note. If we are unable to generate sufficient cash flows
from  operations in the future to service our obligations  and/or  refinance our
existing debt, we could face liquidity and working  capital  constraints,  which
could adversely impact future operations and growth.

       During the  twenty-six  weeks ended July 31,  2004,  Perfumania  closed 7
stores and opened 6 new stores. At July 31, 2004, Perfumania operated 231 stores
compared to 235 stores as of August 2, 2003.  Management's focus is on improving
the  profitability  of  existing  stores  and plans to open 5 stores and close 1
store for the remainder of fiscal year 2004.


                                      -11-
<PAGE>

CRITICAL ACCOUNTING POLICIES

       Our  consolidated  condensed  financial  statements have been prepared in
accordance with accounting principles generally accepted in the United States of
America for  interim  information.  Presentation  of these  statements  requires
management to make judgments and estimates.  As such, some  accounting  policies
have a significant impact on amounts reported in these financial statements. The
judgments  and  estimates  made can  significantly  affect  results.  Materially
different  amounts  would be reported  under  different  conditions  or by using
different  assumptions.  A summary of those critical  accounting policies can be
found in our 2003 Annual Report on Form 10-K.

FORWARD LOOKING STATEMENTS

       Some of the statements in this  quarterly  report,  including  those that
contain  the  words  "anticipate,"   "believe,"  "plan,"  "estimate,"  "expect,"
"should,"  "intend"  and  other  similar   expressions,   are   "forward-looking
statements" within the meaning of the Private  Securities  Litigation Reform Act
of 1995.  Those  forward-looking  statements  involve  known and unknown  risks,
uncertainties  and other factors that may cause our actual results,  performance
or  achievements  or those of our industry to be materially  different  from any
future  results,  performance  or  achievements  expressed  or  implied by those
forward-looking  statements.  Among the factors that could cause actual results,
performance or achievement to differ  materially from those described or implied
in the forward-looking statements are general economic conditions,  competition,
potential  technology changes,  changes in or the lack of anticipated changes in
the  regulatory  environment  in  various  countries,   the  ability  to  secure
partnership or joint-venture  relationships with other entities,  the ability to
raise additional capital to finance expansion, the risks inherent in new product
and service  introductions  and the entry into new geographic  markets and other
factors included in our filings with the Securities and Exchange Commission (the
"SEC'),  including  the Risk Factors  included in our 2003 Annual Report on Form
10-K which are incorporated  herein by this reference to them. Copies of our SEC
filings are  available  form the SEC or may be obtained upon request from us. We
do not undertake  any  obligation to update the  information  contained  herein,
which speaks only as of this date.

ITEM 3.           QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS

       During the  quarter  ended  July 31,  2004,  there have been no  material
changes in the information  about our market risks as of January 31, 2004 as set
forth in Item 7A of the 2003 Form 10-K.

ITEM 4.           CONTROLS AND PROCEDURES

       Our Chief Executive  Officer and Chief  Financial  Officer have evaluated
our disclosure  controls and procedures and have concluded  that, as of July 31,
2004,  our  disclosure  controls and  procedures  are effective  for  gathering,
analyzing  and  disclosing  the  information  we are required to disclose in our
reports  filed under the  Securities  Exchange  Act of 1934.  There have been no
changes in our internal  control  over  financial  reporting  during the quarter
ended July 31, 2004 that has  materially  affected,  or is reasonably  likely to
materially affect, our internal control over financial reporting.

PART II.          OTHER INFORMATION

ITEM 1.           LEGAL PROCEEDINGS

                  Not applicable.

ITEM 2.           CHANGES IN SECURITIES, USE OF PROCEEDS AND ISSUER PURCHASES OF
                  EQUITY SECURITIES

                  Not applicable.


                                      -12-
<PAGE>

ITEM 3.           DEFAULTS UPON SENIOR SECURITIES

                  Not applicable.

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

                  Not applicable.

ITEM 5.           OTHER INFORMATION

                  Not applicable.

ITEM 6.           EXHIBITS AND REPORTS ON FORM 8-K

                  (a) Exhibits

                  Index to Exhibits

                  Exhibit No.              Description of Exhibit

                      31.1  Certification by Chief Executive Officer pursuant to
                            Section 302 of the Sarbanes-Oxley Act of 2002.

                      31.2  Certification by Chief Financial Officer pursuant to
                            Section 302 of the Sarbanes-Oxley Act of 2002.

                      32.1  Certification by Chief Executive Officer pursuant to
                            Section 906 of the Sarbanes-Oxley Act of 2002.

                      32.2  Certification by Chief Financial Officer pursuant to
                            Section 906 of the Sarbanes-Oxley Act of 2002.

                  (b)  Reports on Form 8-K.

                            On June 22, 2004, the Company filed a report on Form
                            8-K  announcing  the  departure  of Jeffrey  Geller,
                            Chief Operating Officer of Perfumania  Marketing,  a
                            wholly-owned subsidiary.


                                      -13-
<PAGE>

                           E COM VENTURES, INC.

                                   SIGNATURES

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

                                                  E COM VENTURES, INC.
                                      ------------------------------------------
                                                  (Registrant)


Date: September 10, 2004              By:  /s/ Michael W. Katz
                                           -------------------------------------
                                           Michael W. Katz
                                           Chief Executive Officer and President


                                      By:  /s/ A. Mark Young
                                           -------------------------------------
                                           A. Mark Young
                                           Chief Financial Officer
                                           (Principal Financial and
                                           Accounting Officer)


                                      -14-