U.S. Securities and Exchange Commission
              Washington, D.C. 20549

                   FORM 10-QSB

 [ X ] QUARTERLY REPORT UNDER SECTION 13 or 15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended:    September 30, 2001

 [  ] TRANSITION REPORT UNDER SECTION 13 OR 15(d)
               OF THE EXCHANGE ACT

For the transition period from:      to:


  Commission file number:     000-26361

    Creative Beauty Supply, Inc.
 (Exact name of Small Business Issuer in its charter)

      NEW JERSEY                      22-3392051
      (State or other jurisdiction of                 (I.R.S. Employer
       incorporation or organization                Identification No.)


 380 Totowa Road, Totawa, NJ             07512
 (Address of principal executive offices)                (Zip Code)

Registrant's Telephone number, including area code: 973-904-0004

Check mark whether the Issuer (1) has filed all
reports required by Section 13 or 15(d) of the
Exchange Act 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 the filing requirements for at
least the past 90 days. YES: X   NO:

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

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

APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of
the issuer's classes of common stock, as of the
last practicable date:  1,864,650

 Transitional Small Business Disclosure Format.
YES:   NO: X


<PAGE>2

PART I   FINANCIAL INFORMATION

CREATIVE BEAUTIY SUPPLY, INC.
BALANCE SHEETS
                           ASSETS
<TABLE>
<CAPTION>
                                               September 30    March 31,
                                                  2001           2001
                                               ------------   -----------
                                               (Unaudited)

                                                <c>            <c>
CURRENT ASSETS:
  Cash and Cash equivalents                     $  205,622    $  235,507
  Marketable securities                            157,500       178,125
  Accounts receivable                                1,743         2,406
  Inventory                                         66,234        62,721
  Prepaid expenses                                   2,597         3,637
                                                ----------    ----------
TOTAL CURRENT ASSETS                               433,696       482,396

PROPERTY AND EQUIPMENT, net of accumulated
  Depreciation                                         268           375
                                                ----------    ----------
TOTAL ASSETS                                    $  433,964    $  482,771
                                                ==========    ==========
LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
  Accounts payable - trade                       $  24,453    $   18,759
  Payroll taxes withheld and accrued                 1,694           821
  Accrued expenses                                     995         2,453
  Deferred income taxes                             46,534        55,093
                                                 ----------    ---------
TOTAL CURRENT LIABILITIES                           73,656        77,125

STOCKHOLDERS' EQUITY
  Preferred stock, par value $.001,
   Authorized 10,000,000 shares issued
   And outstanding 0 shares                      -             -
  Common stock, par value $.001,
   Authorized 100,000,000 shares, issued
   and outstanding 1,854,650 shares                  1,865         1,865
  Additional paid-in-capital                       646,291       646,291
  Accumulated deficit                             (348,814)     (315,542)
  Accumulated other comprehensive income            60,966        73,032
                                                  --------     ---------

TOTAL STOCKHOLDERS' EQUITY                         360,308       405,646
                                                  --------     ---------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY       $ 433,694     $ 482,771
                                                 ==========    =========
</TABLE>
The accompanying note is an integral part of these financial statements.


<PAGE>3

CREATIVE BEAUTY SUPPLY, INC.
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
 (Unaudited)
<TABLE>
<CAPTION>
                                    SIX MONTHS ENDED SEPTEMBER 30,
                                        2001              2000
                                     ---------         ----------

                                     <c>                <c>
NET SALES                           $  111,106         $ 124,232
COST OF GOODS SOLD                      87,218            88,448
                                      ---------          --------
GROSS PROFIT                            23,888            35,784
                                      ---------          --------
OPERATING EXPENSES:
  Salaries - Officers                   16,370            30,000
  Payroll Taxes                          1,474             1,397
  Auto and Delivery                      3,960             3,726
  Employee welfare                       3,043             3,162
  Insurance                              1,552             1,562
  Office                                 1,155             1,591
  Professional fees                     23,934            24,279
  Rent                                   7,602             7,602
  Store supplies                           449               757
  Taxes                                    240               240
  Telephone                                923             1,269
  Utilities                              1,012             1,075
  Miscellaneous                          1,181               381
  Depreciation and amortization            107             1,082
                                      --------         ---------
TOTAL OPERATING EXPENSES                63,002            78,123
                                      --------         ---------
LOSS FROM OPERATIONS BEFORE
  OTHER INCOME                         (39,114)          (42,339)

OTHER INCOME
  Interest income                        5,842             8,337
                                     ---------         ---------
NET LOSS                               (33,272)          (34,002)
OTHER COMPREHENSIVE LOSS, NET OF TAXES
  Unrealized holding loss arising during
   the period, net of income taxes benefit
   of $8,560                           (12,066)                -
                                      --------         ---------
TOTAL COMPREHENSIVE LOSS             $ (45,338)        $ (34,002)
                                     =========         =========
LOSS PER COMMON SHARE, BASIC
   AND DILUTED                        $  (0.02)        $   (0.02)
                                     =========         =========
WEIGHTED AVERAGE NUMBER OF
  COMMON SHARES OUTSTANDING          1,864,650         1,864,650
                                     =========         =========
</TABLE>
The accompanying note is an integral part of
these financial statements.

<PAGE>4

CREATIVE BEAUTY SUPPLY, INC.
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
 (Unaudited)  continued
<TABLE>
<CAPTION>
                                  THREE MONTHS ENDED SEPTEMBER 30,
                                        2001              2000
                                     ---------         ---------

                                      <c>                <c>
NET SALES                            $  50,700         $  59,067

COST OF GOODS SOLD                      39,798            42,051
                                      --------          --------
GROSS PROFIT                            10,902            17,016
                                      --------          --------
OPERATING EXPENSES:
  Salaries - Officers                    7,865            15,000
  Payroll Taxes                            728               722
  Auto and Delivery                      1,784             1,971
  Employee welfare                       1,400             2,049
  Insurance                                776               783
  Office                                   390               584
  Professional fees                      8,639            14,574
  Rent                                   3,801             3,801
  Store supplies                           294               325
  Taxes                                      -                 0
  Telephone                                441               664
  Utilities                                568               490
  Miscellaneous                          1,040                96
  Depreciation and amortization             53               541
                                      --------         ---------
TOTAL OPERATING EXPENSES                27,779            41,600
                                      --------         ---------
LOSS FROM OPERATIONS BEFORE
  OTHER INCOME                         (16,877)          (24,584)
OTHER INCOME
  Interest income                        2,714             4,106
                                     ---------         ---------
NET LOSS                               (14,163)          (20,478)
OTHER COMPREHENSIVE LOSS, NET OF TAXES
  Unrealized holding loss arising during
   The period, net of income taxes benefit
   Of $8,560                           ( 4,585)                -
                                     ---------        ----------
TOTAL COMPENSATION LOSS               $(18,748)        $ (20,478)
                                     =========         =========
LOSS PER COMMON SHARE, BASIC
    AND DILUTED                        $ (0.01)        $   (0.01)
                                     =========         =========
WEIGHTED AVERAGE NUMBER OF
  COMMON SHARES OUTSTANDING          1,864,640         1,864,650
</TABLE>                            ==========         =========
The accompanying note is an integral part of
these financial statements.

<PAGE>5

CREATIVE BEAUTY SUPPLY, INC.
STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED SEPTEMBER 30, 2001

(UNAUDITED)
<TABLE>
<CAPTION>
                                                  2001            2000
                                                ---------      ----------

                                                <c>            <c>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net Loss                                       (33,272)      $(13,524)
  Adjustments to reconcile net loss to
    Net cash from operating activities:
     Depreciation and amortization                   107            541
     (Increase) decrease in operation assets:
       Accounts receivable                           663            408
       Inventory                                  (3,513)          (207)
       Prepaid expenses                            1,040            754
     Increase (decrease) in operating liabilities:
       Accounts payable                            5,694          6,381
       Payroll taxes withheld and accrued            853            993
       Accrued expenses                           (1,457)         6,820
                                                 -------        -------

NET INCREASE (DECREASE) IN CASH AND
  CASH EQUIVALENTS                               (29,885)         2,166

CASH AND CASH EQUIVALENTS - beginning of period  235,507        321,509
                                                --------       --------
CASH AND CASH EQUIVALENTS - end of period       $205,622       $323,675
</TABLE>                                        ========       ========
The accompanying note is an integral part
 of these financial statements.



<PAGE>6

CREATIVE BEAUTY SUPPLY, INC
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2001

NOTE 1  BASIS OF PRESENTATION

The accompanying unaudited financial statements
have been prepared in accordance with generally
accepted accounting principles for interim
financial information and with the instructions to
Form 10QSB 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 six months ending September 30,
2001 are not necessarily indicative of the results
that may be expected for the year ended March 31,
2002.  The unaudited financial statements should
be read in conjunction with the financial
statements and footnotes thereto included in the
Company's Form 10KSB for the year ended March 31,
2001.





<PAGE>7

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

Trends and Uncertainties.  Demand for the
Company's products will be dependent on, among
other things, market acceptance of the Company's
concept and general economic conditions, which are
cyclical in nature.  Inasmuch as a major portion
of the Company's activities is the receipt of
revenues from the sales of its products, the
Company's business operations may be adversely
affected by the Company's competitors and
prolonged recessionary periods.

Hair styles in the industry change drastically
from season to season.   The recent trend away
from straight hair will have a favorable impact on
the sales of the Company's hair products such as
perms, etc. although the extent of this impact is
indeterminable.

Capital and Source of Liquidity.   In April 1999,
the Company renewed its lease for a term of three
(3) years commencing May 1, 1999 at a monthly
rental of $1,200 per month for the first twelve
(12) months and $1,300 a month for each of the
remaining twenty four (24) months.

For the six months ended September 30, 2001 and
2000, the Company pursued no financing activities.

For the six months ended September 30, 2001 and
2000, the Company pursued no investing activities.

Results of Operations.

The Company sells approximately 1,000 different
products at varying mark ups ranging from 15 to 35
percent.   The Company has two types of customers,
beauty salons and the general public.   The gross
profit margin on sales of merchandises to the
general public ranges from 20 to 35 percent
depending on the product sold.   The gross margin
on sales of merchandise to beauty salons is
somewhat less ranging from 15 to 25 percent
depending on the product sold and the discount
given.

September 30, 2001 compared to September 30, 2000

For the six months ended September 30, 2001, the
Company had a net loss of $(33,272).  The Company
had net sales of $111,106 with a cost of goods



<PAGE>8

sold of $87,218 resulting in gross profit of
$23,888 for the six months ended September 30,
2001.

The Company had operating expenses of $63,002 for
the six months ended September 30, 2001.   These
expenses primarily consisted of officer's salaries
of $16,370, auto and delivery of $3,960,
professional fees of $23,934, rent of $7,602,
telephone of $923, utilities of $1,012, store
supplies of $449, insurance of $1,552, office
expenses of $1,155, payroll taxes of $1,474 and
other miscellaneous expenses of $4,571.

For the six months ended September 30, 2000, the
Company had a net loss of $(34,002).  The Company
had net sales of $124,232 with a cost of goods
sold of $88,448 resulting in gross profit of
$35,784 for the six months ended September 30,
2000.

The Company had operating expenses of $78,123 for
the six months ended September 30, 2000.   These
expenses primarily consisted of officer's salaries
of $30,000, auto and delivery of $3,726,
professional fees of $24,279, rent of $7,602,
telephone of $1,269, utilities of $1,075, store
supplies of $757, insurance of $1,562, payroll
taxes of $1,397 and other miscellaneous expenses
of $6,456.

The Company's product margin decreased from six
months ended September 30, 2000 to September 30,
2001 by approximately 7% (from 28.8% to 21,5%).
This decrease represents an approximately 26%
decrease in gross margin.   The decrease is a
direct result from the change in sales mix, lower
volume purchases from suppliers resulting in
higher unit cost, and increased competition.   The
Company did not take advantage of purchase
discounts offered.   The Company raised its prices
in 2000 that resulted in lower sales in 2001.
For the six months ended September 30, 2000, the
Company had 479 invoices to customers while in
2001, the Company had only 454 invoices, a
decrease of 5%, resulting in a decrease of $13,126
in sales for the six months ended September 30,
2001 as compared to the same six months period in
2000.

Salary decreased from $30,000 for the six months
ended September 30, 2000 to $16,370 for the six
months ended September 30, 2001 due to one less
employee.

<PAGE>9


The major cause of the Company's losses from
operations have been the low sales volume.
Management is looking for new suppliers at more
favorable prices and to increase their customer
base and sales volume.

The Company is actively seeking new customers to
increase its volume which will have a favorable
impact on the Company's results of operation
within the next 12 months.

Plan of Operation.  During the next twelve months,
the Company may obtain new product lines by
negotiating with various manufacturers.   The
Company does not intend to hire any additional
employees.

The Company's liquidity will be decreased due to
little or no increase in revenue and higher
operating costs.

The Company is not delinquent on any of its
obligations even though the Company has had
limited operating revenues.   The Company intends
to market its products utilizing cash made
available from the sale of its products.   The
Company is of the opinion that revenues from the
sales of its products and the proceeds from the
sale of its securities will be sufficient to pay
its expenses.

The Company does not have nor does it intend to
have pension and/or other post-retirement benefits
in the future.

The Company does not have any or intends to have
any derivative instruments or hedging activities.




<PAGE>10

                    PART II
               OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS.

    Not applicable.

ITEM 2.  CHANGES IN SECURITIES.

    Not applicable.

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)  Not applicable.

    (b)  Not applicable.






<PAGE>11


              SIGNATURES


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

                Creative Beauty Supply, Inc.
                (Registrant)

Dated:    November 13, 2001



By:  /s/ Carmine Catizone
     ----------------------------
         Carmine Catizone, President