SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                    FORM 10-Q

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

For the quarterly period ended February 28, 1998.

                                       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 0-4465

                            Sirco International Corp.
--------------------------------------------------------------------------------
             (Exact Name of Registrant as Specified in Its Charter)


          New York                                      13-2511270
--------------------------------------------------------------------------------
  (State or Other Jurisdiction                      (I.R.S. Employer
  of Incorporation or Organization)                 Identification No.)


  24 Richmond Hill Avenue, Stamford, Connecticut           06901
--------------------------------------------------------------------------------
       (Address of Principal Executive Offices)          (Zip Code)


Registrant's Telephone Number, Including Area Code            203-359-4100
                                                              ------------ 


--------------------------------------------------------------------------------
(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  registrant's
classes of common stock, as of the latest practicable date:  4,950,400 shares of
Common Stock, par value $.10 per share, as of April 1, 1998.
<PAGE>
                          PART 1. FINANCIAL INFORMATION

Item 1.  Financial Statements
<TABLE>
<CAPTION>

                            Sirco International Corp. and Subsidiaries
                               Condensed Consolidated Balance Sheets

                                                                   Feb. 28, 1998    Nov. 30, 1997
Assets                                                              (Unaudited)        (See note)
                                                                   ------------      ------------
<S>                                                                <C>               <C>
Current assets:
    Cash and cash equivalents ................................     $    216,141      $    114,190
    Accounts receivable ......................................        2,306,063         3,166,804
    Inventories ..............................................        6,145,701         7,707,631
    Prepaid expenses .........................................          242,860           253,225
    Other current assets .....................................           42,021            44,231
    Recoverable income taxes .................................          119,683           125,517
                                                                   ------------      ------------
Total current assets .........................................        9,072,469        11,411,598

Property and equipment at cost ...............................        1,762,729         1,762,533
Less accumulated depreciation ................................          957,590           935,220
                                                                   ------------      ------------
Net property and equipment ...................................          805,139           827,313
                                                                   ------------      ------------

Other assets .................................................          187,795           207,940
Investment in and advances to subsidiary .....................          514,289           514,797
Investment in affiliate ......................................        1,520,665         1,080,000
Goodwill .....................................................          500,000
                                                                   ------------      ------------
Total assets .................................................     $ 12,600,357      $ 14,041,648
                                                                   ============      ============

Liabilities and stockholders' equity Current liabilities:
    Loans payable to financial institutions ..................     $  4,775,089
    Current maturities of long-term debt .....................            7,246      $  1,522,060
    Due to related parties ...................................        1,038,119           974,046
    Accounts payable .........................................        1,683,171         2,489,259
    Accrued expenses .........................................        1,189,271         1,318,863
                                                                   ------------      ------------
Total current liabilities ....................................        8,692,896         6,304,228
                                                                   ------------      ------------

Long-term debt, less current maturities ......................          321,023         4,521,795
                                                                   ------------      ------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>

                            Sirco International Corp. and Subsidiaries
                               Condensed Consolidated Balance Sheets
                                           (continued)

                                                                   Feb. 28, 1998    Nov. 30, 1997
                                                                    (Unaudited)        (See note)
                                                                   ------------      ------------
<S>                                                                <C>               <C>
Stockholders' equity:
    Common stock, $.10 par value; 10,000,000 share authorized,
    4,600,400 issued (1998), 4,300,400 issued (1997) .........          460,040           430,040
    Preferred stock, $.10 par value;  1,000,000 authorized,
    none issued
    Capital in excess of par value ...........................        8,343,368         7,753,368
    Retained earnings (deficit) ..............................       (4,561,185)       (3,887,532)
    Treasury stock at cost ...................................          (27,500)          (27,500)
Treasury stock held by equity investee .......................                           (420,000)
    Accumulated foreign translation adjustment ...............         (628,285)         (632,751)
                                                                   ------------      ------------
Total stockholders' equity ...................................        3,586,438         3,215,625
                                                                   ------------      ------------
Total liabilities and stockholders' equity ...................     $ 12,600,357      $ 14,041,648
                                                                   ============      ============
</TABLE>
See notes to the condensed consolidated financial statements.

Note:The balance  sheet at November  30, 1997 has been  derived from the audited
     financial  statements at that date but does not include all the information
     and footnotes required by generally accepted accounting principles.
<PAGE>
<TABLE>
<CAPTION>
                   Sirco International Corp. and Subsidiaries
                 Condensed Consolidated Statements of Operations
                                   (Unaudited)

                                                    For the Three Months Ended
                                                 Feb. 28, 1998     Feb. 28, 1997
                                                  -----------       -----------
<S>                                               <C>               <C>
Net sales ..................................      $ 3,832,171       $ 3,066,144
Cost of goods sold .........................        2,980,710         2,372,389
                                                  -----------       -----------

Gross profit ...............................          851,461           693,755

Selling, warehouse, and general and
    administrative expenses ................        1,319,256         1,100,205
                                                  -----------       -----------

Loss from operations .......................         (467,795)         (406,450)
                                                  -----------       -----------

Other (income) expense:
Interest expense ...........................          148,781           124,479
Interest income ............................           (2,123)           (9,186)
Miscellaneous income, net ..................          (40,135)          (94,661)
Equity in loss of investee .................           99,335              --
                                                  -----------       -----------

                                                      205,858            20,632
                                                  -----------       -----------

Net loss ...................................      ($  673,653)      ($  427,082)
                                                  ===========       ===========


Basic loss per share .......................      ($     0.16)      ($     0.16)
                                                  ===========       ===========

Diluted loss per share .....................      ($     0.16)      ($     0.16)
                                                  ===========       ===========

Shares used in computing loss per share:

    Basic and diluted ......................        4,312,622         2,628,466
                                                  ===========       ===========
</TABLE>

See notes to the condensed consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
                          Sirco International Corp. and Subsidiaries
                        Condensed Consolidated Statements of Cash Flows
                                          (Unaudited)

                                                                 For the Three Months Ended
                                                                Feb. 28, 1998   Feb. 28, 1997
                                                                -----------      -----------
<S>                                                             <C>              <C>
Cash flows from operating activities:
Net loss ..................................................     ($  673,653)     ($  427,082)
Adjustments to reconcile net loss
    to net cash provided by (used in) operating activities:
     Depreciation and amortization ........................          22,371           24,815
     Provision for losses in accounts receivable ..........                            1,805
     Loss in sale of property and equipment ...............                            7,104
     Loss in  equity  of  investee ........................          99,335
Changes  in  operating  assets  and liabilities:
      Accounts receivable .................................         866,137         (118,198)
      Inventories .........................................       1,582,416         (154,197)
      Prepaid expenses ....................................          21,673         (193,072)
      Other current assets ................................           2,210           69,062
      Other assets ........................................          20,145          (63,073)
      Accounts payable and accrued expenses ...............        (873,296)      (1,662,933)
                                                                -----------      -----------

Net cash provided by (used in) operating activities: ......       1,067,338       (2,515,769)
                                                                -----------      -----------
Cash flows from investing activities:
Purchase of property and equipment ........................                          (20,013)
Proceeds from sale of property and equipment ..............                            3,655
Proceeds from agreement to sell subsidiary ................             508            7,556
                                                                -----------      -----------
Net cash provided by (used in) investing activities .......             508           (8,802)
                                                                -----------      -----------
Cash flows from financing activities:
Increase (decrease) in loans payable to
    financial institutions and short-term
    and long-term payable to related  party ...............        (954,637)       2,752,818
    Proceeds from exercise of stock options ...............                           16,000
                                                                -----------      -----------
Net cash (used in) provided by financing activities .......        (954,637)       2,768,818
                                                                -----------      -----------

Effect of exchange rate changes on cash ...................         (11,258)          (4,042)
                                                                -----------      -----------

Increase in cash and cash equivalents .....................         101,951          240,205
Cash and cash equivalents at beginning of period ..........         114,190          390,043
                                                                -----------      -----------

Cash and cash equivalents at the end of period ............     $   216,141      $   630,248
                                                                ===========      ===========
Supplemental  disclosures of cash flow  information
Cash paid during the period for:
    Interest ..............................................     $   144,007      $   127,938
    Income taxes ..........................................     $                $   300,015
</TABLE>
See notes to the condensed consolidated financial statements.
<PAGE>
                            SIRCO INTERNATIONAL CORP.

        Notes To Condensed Consolidated Financial Statements (Unaudited)


Note 1-Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial  information and with the  instructions to Form 10-Q and Article 10 of
Regulation  S-X.  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 accruals)  considered necessary for a fair presentation have
been included.  Operating  results for the three month period ended February 28,
1998 are not necessarily  indicative of the results that may be expected for the
year ended November 30, 1998. For further information, refer to the consolidated
financial  statements  and footnotes  thereto  included in the Company's  Annual
Report on Form 10-K for the year ended November 30, 1997.


Note 2-Financing Arrangements

On December  17,  1996,  the  Company's  factoring  agreement  with  Rosenthal &
Rosenthal Inc. was terminated and replaced with a financing agreement with Coast
Business  Credit,  a division of Southern  Pacific  Thrift and Loan  Association
("Coast"),  that provides for revolving loans and letter of credit  financing in
the  amount  of the  lesser  of  $7,000,000  or the sum of (a)  80% of  eligible
accounts  receivable (as defined) and (b) 50% of eligible inventory (as defined)
up to a  maximum  inventory  loan of  $3,000,000  less 50% of  letter  of credit
financing outstanding. The amount of the facility available for letter of credit
financing  is limited to  $2,500,000.  The loan bears  interest  at 2% above the
prime rate,  matures on December 31, 1998,  and is  guaranteed  by the Company's
Chairman and Chief Executive  Officer.  The Company has granted Coast a security
interest in substantially all of the Company's assets.  The agreement with Coast
contains various restrictive covenants, including among others, a restriction on
the  payment  or  declaration  of  any  cash  dividends,  a  restriction  on the
acquisition  of any assets  other than in the  ordinary  course of  business  in
excess  of  $100,000,  restrictions  related  to  mergers,  borrowing  and  debt
guarantees, and a $100,000 annual limitation on the acquisition or retirement of
the Company's common and preferred stock,  which acquisitions or retirements are
limited to transactions  with employees,  directors and consultants  pursuant to
the terms of employment,  consulting or other stock restriction  agreements with
such  persons.  The  agreement  also  requires the Company to maintain a minimum
tangible net worth of  $1,400,000.  As of February  28,  1998,  the Company owed
Coast $4,775,089 and had no outstanding letters of credit. At February 28, 1998,
the prime rate was 8.50%.

In January 1997, the Company's Canadian subsidiary, Sirco International (Canada)
Ltd. ("Sirco Canada"), was advised by its bank, National Bank of Canada, that it
would no longer  provide  Sirco  Canada a  revolving  line of  credit  but would
continue  to provide  the real  property  mortgage.  The  mortgage is payable in
monthly installments of approximately $3,500, including interest at 10.25%, with
a balloon  payment of  approximately  $325,000 in the year 2000. At February 28,
1998, the mortgage was approximately $328,000.
<PAGE>
                            SIRCO INTERNATIONAL CORP.

        Notes To Condensed Consolidated Financial Statements (Unaudited)


Note 3. Investment in subsidiary

On February 27, 1998,  the Company  acquired  all of the  outstanding  shares of
common  stock of Essex  Communications,  Inc.  ("Essex") in exchange for 250,000
shares of the  Company's  common  stock and  warrants  to purchase up to 225,000
shares of the Company's  common stock at $2.75 per share,  of which  warrants to
purchase  75,000  shares  vested  immediately  and warrants to purchase  150,000
shares vest if certain  performance  conditions are met. The purchase  agreement
also  provides  for the  issuance  of up to  600,000  additional  shares  of the
Company's common stock if certain other performance conditions are met. Essex is
a start-up  telecommunications  provider  that is  qualified in New York and New
Jersey to resell local telephone services.  This acquisition is accounted for as
a purchase.
<PAGE>
Item 2.  Management's Analysis and Discussion of Financial Condition and Results
         of Operations

The following discussion and analysis contains  forward-looking  statements that
involve  risks and  uncertainties.  The  Company's  actual  results  may  differ
materially from the results discussed in the forward-looking statements. Factors
that might cause such a difference include,  among others,  general economic and
business conditions; industry trends; the loss of major customers; dependence on
foreign  sources of supply;  the loss of licenses;  availability  of management;
availability,  terms and  deployment  of  capital;  the  seasonal  nature of the
Company's  business;  and  changes  in  state  and  federal  regulations  of the
telecommunications industry.

Three Months Ended February 28, 1998 vs. February 28, 1997

Net  sales  for  the  three  months  ended   February  28,  1998   increased  by
approximately $766,000 to approximately  $3,832,000 as compared to approximately
$3,066,000  reported in the prior  fiscal  period.  Net sales for the  Company's
United States operations increased by approximately $1,156,000. This increase in
net  sales was  attributable  to (1)  increases  in sales of  licensed  product,
especially  Dunlop  and Perry  Ellis,  (2)  sales of  certain  discontinued  and
slow-moving  licensed  product  and  product  lines and (3) sales of products to
American Airlines employees by the Company's  recently formed subsidiary,  which
was not in operation in the prior fiscal period.  This increase in net sales was
partially  offset  by a  decrease  in  net  sales  of the  Company's  unlicensed
products.   Net  sales  for  the  Company's  Canadian  operation   decreased  by
approximately  $390,000.  This decrease is primarily attributable to the loss by
Sirco  Canada , in fiscal  1997,  of the  license  from Airway  Industries  Inc.
("Airway") to sell  Atlantic  luggage (see below).  The sale of Airway  products
accounted for approximately  $472,000 in net sales for the first three months of
fiscal 1997 prior to the December 31, 1996  termination  date.  This decrease in
net sales was partially offset by increases in net sales in Canada for the Perry
Ellis and Hedgren lines.

The  Company's  gross  profit  for the three  months  ended  February  28,  1998
increased by approximately $157,000 to approximately $851,000 from approximately
$694,000  reported in the prior fiscal period,  and the gross profit  percentage
decreased to 22.2% from 22.6% reported in the prior fiscal period.  The decrease
in gross profit  percentage  was primarily  attributable  to the sale of certain
discontinued  and  slow-moving  licensed  products and product  lines at margins
below what the Company normally sells similar product.

During  fiscal  1996,  Airway  notified  the Company that it would not renew its
license  agreement with the Company,  pursuant to which Sirco Canada was granted
an exclusive  license to sell in Canada,  luggage and luggage  related  products
under the trade names  "Atlantic" and "Oleg Cassini"  through December 31, 1996.
In November  1996,  the Company  entered into an Asset  Purchase  Agreement with
Airway,  whereby  Airway agreed,  among other things,  to purchase any remaining
Atlantic  inventory  owned by Sirco  Canada on December  31,  1996,  to purchase
certain  fixed  assets  and to enter  into a two year  lease  for a  substantial
portion of the premises owned by Sirco Canada at fair market value. Sirco Canada
sold  approximately  $472,000 of Airway  product in the first  quarter of fiscal
1997 prior to the December  31, 1996  termination  date.  The loss of the Airway
license had an adverse  effect on the Company's  results of  operations  for the
fiscal  quarter ended  February 28, 1998 and will have an adverse  effect on the
Company's  results of operations for the remainder of fiscal year ended November
30, 1998. However,  the Company expects to recoup a portion of Airway sales from
sales in Canada of its other licensed products.
<PAGE>
Selling,  warehouse,  and general and administrative  expenses increased for the
three months ended February 28, 1998 by approximately  $219,000 to approximately
$1,319,000  from  approximately  $1,100,000  reported in prior fiscal period.  A
major portion of this  increase was  attributable  to employee  costs and rental
expense associated with the Company's  recently-formed  subsidiary that sells to
American Airlines employees.

Interest  expense for the three  months  ended  February  28, 1998  increased by
approximately  $24,000  from the  amount  reported  in the  three  months  ended
February 28, 1997 due to higher average borrowings.

Miscellaneous  income for the three months ended  February 28, 1998 decreased by
approximately  $55,000 over the amounts reported in the prior fiscal period. The
decline of approximately  $63,000 in the Company's  commission  income generated
from sales arranged by the Company  between the Company's  suppliers and certain
customers  was offset by an increase in rental  income of  approximately  $8,000
reported by the Company's Canadian subsidiary.

At February 28, 1998,  the Company was the largest  shareholder  of CLEC Holding
Corp.  ("CHC"),  owning  approximately  28%  of  CHC's  capital  stock.  As  the
investment is accounted for under the equity method of  accounting,  the Company
has reported its proportionate share of CHC's net loss of approximately  $99,000
in the Company's  results of operations  for the three months ended February 28,
1998.

Liquidity and Capital Resources

At February 28, 1998, the Company had cash and cash equivalents of approximately
$216,000, and working capital of approximately $379,000.

Net cash provided by (used in)  operating  activities  aggregated  approximately
$1,067,000  and  ($2,516,000)  in fiscal  quarters  ended  February 28, 1998 and
February 28, 1997, respectively.

Net cash provided by (used in)  investing  activities  aggregated  approximately
$500 and ($9,000) in fiscal  quarters  ended  February 28, 1998 and February 28,
1998,  respectively.  The principal source of cash from investing  activities in
fiscal 1998 was the proceeds from the 1992 sale of a  subsidiary.  The principal
source of cash provided from investing activities for the quarter ended February
28, 1997 was the  proceeds of the sale of  equipment  and the proceeds of a note
receivable from the 1992 sale of a subsidiary, offset by the use of net cash for
the purchase of equipment.

Net cash (used in) provided by  financing  activities  aggregated  approximately
($955,000)  and  $2,769,000  in fiscal  quarters  ended  February  28,  1998 and
February 28, 1997,  respectively.  In the first fiscal quarter of 1998, net cash
used in financing  activities  resulted from the decrease in short-term debt. In
the first  fiscal  quarter  of 1997,  approximately  $2,754,000  of net cash was
provided by  short-term  debt and $16,000 was provided  from the proceeds of the
exercise of stock options.

On December 17, 1996,  the Company's  entered into an financing  agreement  with
Coast Business  Credit, a division of Southern Pacific Thrift & Loan Association
("Coast").  See Note 2 to Notes to Condensed  Consolidated  Financial Statements
(Unaudited).  As of February 28, 1998,  the Company was indebted to Coast in the
amount of $4,775,089 and had no outstanding letters of credit. This loan matures
<PAGE>
on December 31, 1998 and  therefore the entire  indebtedness  is classified as a
current  liability,  whereas  a  significant  portion  of the  indebtedness  was
considered a long-term liability at the Company's most recent fiscal year-end of
November 30, 1997. The  reclassification in debt from long-term to current has a
significant   impact  on  the  Company's  working  capital  position.   However,
management believes it can successfully refinance this working capital line in a
manner that will not be disruptive to operations.

In January 1997, Sirco Canada was advised by its bank,  National Bank of Canada,
that it would no longer  provide  Sirco  Canada a  revolving  line of credit but
would  continue to provide the real  property  mortgage.  See Note 2 to Notes to
Condensed Consolidated Financial Statements  (Unaudited).  At February 28, 1998,
the  mortgage was  approximately  $328,000.  The Company is currently  using the
Coast line of credit to provide  letter of credit  financing  that was  formerly
provided by National Bank of Canada.

For  the  quarter  ended   February  28,  1998,   the  Company  had  no  capital
expenditures. The Company does not plan to make significant capital expenditures
in fiscal 1998.

As of April 1, 1998,  the  Company  owned  approximately  3,200,000  shares,  or
approximately  28% of CHC, a Florida based  competitive  local exchange carrier.
Although CHC has  approximately  750  shareholders,  it is not publicly  traded,
there is no readily  ascertainable  market for the stock, and the shares held by
the Company  bear a  restrictive  legend  stating  that the shares have not been
registered  under the  Securities Act of 1933. The investment in CHC is recorded
on the Company's books by the equity method.

Management  believes that the Company's  present sources of financing,  combined
with  its  present  working  capital  and cash  flow  from  operations,  will be
sufficient to meet the cash and capital  requirements  for the Company's  travel
division for the next twelve months.  However,  if the depressed levels of sales
do not increase or the Company is unable to improve its cash position by raising
additional capital,  the Company may experience  temporary cash shortages.  Such
cash shortages may negatively impact the Company's ability to purchase inventory
in a timely  manner,  which could  negatively  impact the  Company's  results of
operations.

The Company  anticipates that it will need to raise up to $2 million to meet the
cash requirements for its telecommunications division contemplated by the fiscal
1998  business  plan for that  division.  There  can be no  assurances  that the
Company will be able to obtain such funding when needed,  or that such  funding,
if available, will be obtainable on terms acceptable to the Company. The failure
by the Company to raise the  necessary  funds to finance its  telecommunications
operations  will have an adverse  effect on the  ability of the Company to carry
out its business plan for its telecommunications division.
<PAGE>
                           SIRCO INTERNATIONAL CORP.

                            PART II-OTHER INFORMATION

Item 2.           Changes in Securities

                  On January  23, 1998 the Company  acquired,  in a  transaction
                  with a private individual, 200,000 shares of common stock, par
                  value  $.001  per  share,  of  CHC,  in  consideration  of the
                  issuance  by the Company of 50,000  shares of Common  Stock of
                  the  Company.   Such  transaction  was  effected  pursuant  to
                  Sections 4(2) of the Securities Act of 1933, as amended.




Item 6.           Exhibits and Reports on Form 8-K

                  (a)  Exhibits.
                         None

27--              Financial Data Schedule.

                  (b) 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 hereunto duly authorized.


                                                Sirco International Corp.


April 10, 1998                                  By: /s/Joel Dupre
--------------                                      -------------
Date                                                Joel Dupre
                                                    Chairman of the Board and
                                                    Chief Executive Officer





April 10, 1998                                  By: /s/Paul Riss
--------------                                      ------------ 
Date                                                Paul Riss
                                                    Chief Financial Officer
                                                    (Principal Financial and
                                                    Accounting Officer)



<PAGE>


                                  EXHIBIT INDEX

             No.                   Description                              
             ---                   -----------                              

             27                Financial Data Schedule.