<PAGE>   1

                                  UNITED STATES
                       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 March 31, 1997.

[ ]      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:   0-24636

                         THE SIRENA APPAREL GROUP, INC.
           (Exact name of the registrant as specified in its charter)

           DELAWARE                                36-2998726
(State or other jurisdiction                    (I.R.S. Employer
of incorporation or organization)             Identification number)

                               10333 VACCO STREET
                        SOUTH EL MONTE, CALIFORNIA 91733
                    (Address of principal executive offices)

                                 (818) 442-6680
               (Registrant's telephone number including area code)

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 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.

[X] Yes [ ] No

The number of shares outstanding of the registrant's Common Stock, $0.01 par
value, on April 30, 1997 was 4,649,230 shares.

This Form 10-Q contains 15 pages 

Exhibit Index appears on page 16.



                                       1
<PAGE>   2
                                    FORM 10-Q

                                      INDEX

<TABLE>
<CAPTION>
                                                                        PAGE
                                                                        ----
                         PART I - FINANCIAL INFORMATION

<S>      <C>                                                              <C>
Item 1.  Financial Statements (Unaudited)

         Balance Sheets                                                    3
         March 31,1997 and June 30,1996

         Statements of Operations                                          5
         Three and Nine months ended March 31,1997
         and 1996

         Statements of Cash Flows                                          6
         Nine months ended March 31,1997 and 1996

         Notes to Financial Statements                                     7
         March 31,1997

Item 2.  Management's Discussion and Analysis of                           9
         Financial Condition and Results of
         Operations

                           PART II - OTHER INFORMATION

Item 1.  Legal proceedings                                                13

Item 2.  Changes in Securities                                            13

Item 3.  Defaults Upon Senior Securities                                  13

Item 4.  Submissions 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
</TABLE>



                                       2
<PAGE>   3

                         PART I - FINANCIAL INFORMATION


Item 1. Financial Statements


                         THE SIRENA APPAREL GROUP, INC.
                                 BALANCE SHEETS


<TABLE>
<CAPTION>
                                            March 31,        
                                              1997             June 30,
                                           (Unaudited)           1996
                                           -----------        ------------
<S>                                        <C>                <C>         
ASSETS
Current assets
 Cash                                      $     57,000       $     18,000
 Accounts receivable, net of
 allowance of $1,566,000
 (March 31, 1997) and
 $2,291,000 (June 30, 1996) (Note 2)          5,493,000          4,938,000
 Inventories (Note 3)                        12,638,000          7,713,000
 Prepaids and other current assets              754,000          1,089,000
                                           ------------       ------------
Total current assets                         18,942,000         13,758,000

Equipment and leasehold improvements:

 Furniture, fixtures and equipment            3,327,000          3,110,000
 Leasehold improvements                         821,000            814,000
                                           ------------       ------------
                                              4,148,000          3,924,000
Less accumulated depreciation
and amortization                             (3,044,000)        (2,788,000)
                                           ------------       ------------
                                              1,104,000          1,136,000
Equipment under capital lease
 less accumulated amortization
 of $32,000  (March 31, 1997)
 and $87,000 (June 30, 1996)                    182,000             81,000

Intangible assets, less
 accumulated amortization
 $943,000 (March 31, 1997)
 and $849,000 (June 30, 1996)                 3,496,000          3,590,000

Deposits                                        113,000            113,000
                                           ------------       ------------
Total assets                               $ 23,837,000       $ 18,678,000
                                           ============       ============
</TABLE>



See accompanying notes.




                                       3
<PAGE>   4


<TABLE>
<CAPTION>
                                              March 31,          
                                                1997              June 30,
                                            (unaudited)            1996
                                           -------------       ------------
<S>                                        <C>                 <C>         
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
 Bank overdraft                            $  1,635,000        $    336,000
 Line of credit                                 370,000                --
 Accounts payable                             5,655,000           2,666,000
 Accrued liabilities                            995,000             820,000
Current portion of
 capital lease obligations                       39,000              36,000
                                           ------------        ------------
Total Current liabilities                     8,694,000           3,858,000

Capital lease obligations
 less current portion                           148,000              50,000

Stockholders' equity
 Common Stock, $.01 par value
  Authorized, 20,000,000 shares
  Issued and outstanding,
  4,649,230 shares                               46,000              46,000
 Additional paid-in capital                  32,425,000          32,425,000
 Accumulated deficit                        (17,476,000)        (17,701,000)
                                           ------------        ------------
 Total stockholders' equity                  14,995,000          14,770,000
                                           ------------        ------------
Total liabilities and stock-
 holders' equity                           $ 23,837,000        $ 18,678,000
                                           ============        ============
</TABLE>



See accompanying notes.



                                       4
<PAGE>   5
                         THE SIRENA APPAREL GROUP, INC.

                             STATEMENT OF OPERATIONS

                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                        Three Months Ended                Nine Months Ended
                                   ----------------------------      ----------------------------
                                    March 31,         March 31,       March 31,        March 31,
                                      1997              1996            1997             1996
                                   -----------      -----------      -----------      -----------
<S>                                <C>              <C>              <C>              <C>        
Net Sales                          $18,207,000      $24,967,000      $27,435,000      $37,870,000
Cost of goods sold                  11,528,000       17,013,000       17,928,000       25,394,000
                                   -----------      -----------      -----------      -----------
Gross Profit                         6,679,000        7,954,000        9,507,000       12,476,000
Selling, general and
 administrative expenses             4,084,000        4,716,000        8,408,000        9,597,000
Depreciation and amortization           75,000           68,000          215,000          205,000
                                   -----------      -----------      -----------      -----------
Total operating expenses             4,159,000        4,784,000        8,623,000        9,802,000
                                   -----------      -----------      -----------      -----------
Income from operations               2,520,000        3,170,000          884,000        2,674,000
Interest expense                       266,000          259,000          650,000          592,000
                                   -----------      -----------      -----------      -----------
Income before provision
 for income taxes                    2,254,000        2,911,000          234,000        2,082,000
Provision for income
 taxes (note 4)                           --          1,019,000            9,000          729,000
                                   -----------      -----------      -----------      -----------
Net Income                         $ 2,254,000      $ 1,892,000      $   225,000      $ 1,353,000
                                   ===========      ===========      ===========      ===========
Net Income per share               $      0.48      $      0.40      $      0.05      $      0.33
                                   ===========      ===========      ===========      ===========
Weighted average number of
 common shares outstanding           4,649,230        4,735,000        4,649,230        4,057,000
                                   ===========      ===========      ===========      ===========
</TABLE>


See accompanying notes.



                                       5
<PAGE>   6

                         THE SIRENA APPAREL GROUP, INC.
                            STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                            Nine Months Ended
                                     --------------------------------
                                        March 31,         March 31,
                                          1997              1996
                                     ------------       ------------
<S>                                  <C>                <C>         
OPERATING ACTIVITIES
Net income                           $    225,000       $  1,353,000
Adjustments to reconcile
  net income to net
  cash used in
  operating activities:
Depreciation and amortization             347,000            295,000
Changes in operating
 assets and liabilities:
Accounts receivable                      (555,000)        (7,413,000)
Inventories                            (4,925,000)        (9,497,000)
Prepaid and other assets                  335,000            (84,000)
Accounts payable                        2,989,000          4,870,000
Accrued liabilities                       178,000            100,000
                                     ------------       ------------
Net cash used in operating
 activities                            (1,406,000)       (10,376,000)

INVESTING ACTIVITIES
Purchases of property,
 plant and equipment                     (224,000)          (527,000)
                                     ------------       ------------
Net cash used in investing
 activities                              (224,000)          (527,000)

FINANCING ACTIVITIES
Borrowing on line of credit               370,000               --
Principal payment on
 long-term debt                              --              (34,000)
Proceeds from issuance of
 Common Stock                                --            8,413,000
Increase in bank
 overdraft                              1,299,000          2,488,000
                                     ------------       ------------
Net cash provided by
 financing activities                   1,669,000         10,867,000
                                     ------------       ------------
 increase(decrease) in cash                39,000            (36,000)
Cash at the beginning of period            18,000             59,000
                                     ------------       ------------
Cash at the end of period            $     57,000       $     23,000
                                     ============       ============
</TABLE>



See accompanying notes.



                                       6
<PAGE>   7

                         THE SIRENA APPAREL GROUP, INC.
                    NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
                                 MARCH 31, 1997

1.      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

        The accompanying unaudited financial statements have been prepared in
        accordance with generally accepted accounting principals 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 fair presentation have been included. The
        financial position as of March 31, 1997, operating results for the three
        and nine months ended March 31, 1997 and cash flows for the nine months
        ended March 31, 1997 are not necessarily indicative of the results that
        may be expected for the year ending June 30, 1997. For further
        information, refer to the financial statements and footnotes thereto
        included in the Company's Annual Report on Form 10-K for the year ended
        June 30, 1996.

2.      ACCOUNTS RECEIVABLE

        On September 15, 1995, the Company amended its advance factoring 
        agreement. Under the terms of the amended agreement, the Company will
        receive advances up to 80% of uncollected receivables. In addition, the
        company may draw short-term advances up to 50% of the eligible
        inventory, as defined, and may also borrow seasonal over-advances from
        September 1 to May 31 each year up to a maximum of $3.0 million during
        December. Interest at the prime rate plus 0.75%, 2% and 2% is to be
        charged on factor advances, inventory advances and seasonal advances,
        respectively. Aggregate obligations under the agreement cannot exceed
        $26 million. The agreement has an amended term of two years and includes
        certain financial covenants, including restrictions on the payment of
        cash dividends. The Company's factoring agreement expires on August 19,
        1997, after which time either party may terminate upon 60 days written
        notice.



                                       7
<PAGE>   8

                    NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
                                   (CONTINUED)


3.      INVENTORIES

        Inventories consist of the following:

<TABLE>
<CAPTION>
                           March 31, 1997    June 30, 1996
                           --------------    -------------
<S>                          <C>              <C>        
        Raw materials        $ 2,889,000      $ 3,917,000
        Work-in-process        4,083,000          450,000
        Finished goods         5,666,000        3,346,000
                             -----------      -----------
        Total                $12,638,000      $ 7,713,000
                             ===========      ===========
</TABLE>

4.      INCOME TAXES

        The provision for income taxes for the three and nine months ended March
        31, 1997 has been computed based on the estimated effective tax rate for
        the year ending June 30, 1997.

5.      IMPACT OF RECENTLY ADOPTED ACCOUNTING STANDARDS

        In February 1997, the Financial Accounting Standards Board issued
        Statement No. 128, Earnings per Share, which is required to be adopted
        on December 31, 1997. At that time, the Company will be required to
        change the method currently used to compute earnings per share and to
        restate all prior periods. Under the new requirements for calculating
        primary earnings per share, the dilutive effect of stock options will
        be excluded. The impact of Statement 128 on the calculation of primary
        earnings per share for these quarters is not expected to be material.



                                       8
<PAGE>   9


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

This Quarterly Report contains "forward-looking statements" within the meaning
of Section 21E of the Securities Exchange Act 1934, as amended. All
forward-looking statements involve risks and uncertainties. Although the Company
believes that its expectations are based upon reasonable assumptions within the
bounds of its knowledge of its business and operations, there can be no
assurance that actual results will not materially differ from its expectations.
Factors that may cause actual results to differ materially from the Company's
expectations and underlying assumptions are set forth herein under "Management's
Discussion and Analysis of Financial Conditions and Results of Operations", as
well as within this Quarterly Report generally. The Company cautions the reader,
however, that these factors may not be exhaustive, particularly with respect to
future filings. Readers are additionally cautioned not to place undue reliance
on any forward-looking statements, which speak only as of the date hereof. The
Company undertakes no obligation to publicly release any revisions to such
forward-looking statements to reflect events or circumstances after the date
hereof.

RESULTS OF OPERATIONS

Net Sales. Net sales decreased to $18,207,000 for the third quarter ended March
31, 1997 from $24,967,000 in the comparable period last year, a decrease of 27%.
Net sales in the nine months ended March 31, 1997 decreased to $27,435,000 from
$37,870,000 in the comparable last year period, a decrease of 28%. The decrease
in net sales for the third quarter consisted of (i) a 62.8% decrease in revenue
of the Private Label division resulting from a shift of delivery dates into the
fourth quarter and a reduction in bookings from selected retail chain stores,
and (ii) a 9.3% decrease in revenue of Branded swimwear resulting from a
reduction in retailers' open-to-buy allocated to the Company, and a 25%
reduction of available stock keeping units as part of the Company's program of
inventory reduction and gross margin percentage improvement.

The decrease in net sales for the nine months ended March 31, 1997 over the
comparable period last year resulted from (i) a reduction in stock keeping
units, (ii) a reduction in retailers' open-to-buy allocated to the Company, and
(iii) the elimination of cut-up programs by discounters, which had been obtained
by the Company last year.



                                       9
<PAGE>   10

Gross Profit. Gross profit decreased to $6,679,000 (36.7% of net sales) for the
third quarter ended March 31, 1997 from $7,954,000 (31.9% of net sales), for the
comparable period last year, a decrease of 16.0%. Gross profit in the nine
months ended March 31, 1997 decreased to $9,507,000 (34.7% of net sales) from
$12,476,000 (32.9% of net sales) for the comparable period last year, a decrease
of 23.8%. The decrease in gross profit for the third quarter resulted from the
decrease in net sales. The increase in gross profit as a percentage of sales
resulted from a greater mix of higher margin branded merchandise compared to
private label products and increased favorable manufacturing variances due to
improved production efficiencies. The decrease in gross profit for the nine
months ended March 31, 1997 resulted from the decrease in net sales partially
offset by an increase in the favorable manufacturing variances noted above.

Selling, General and Administrative Expenses. Selling, General and
Administrative expenses decreased to $4,159,000 (22.8% of the net sales) for the
third quarter ended March 31, 1997 from $4,784,000 (19.2% of the net sales) in
the comparable period last year, a decrease of 13.1%. Selling, General and
Administrative expenses decreased to $8,623,000 (31.4% of net sales) for the
nine months ended March 31, 1997 from $9,802,000 (25.9% of net sales) in the
comparable period last year, a decrease of 12.0%. The decrease in such expenses
for both the three and nine months ended March 31, 1997 was due primarily to
cost reductions in distribution, advertising, and administration. The
administrative expenses for the nine months ending March 31, 1997 include the
offset of litigation expenses with the net proceeds recovered from a settlement.

Interest expense. Interest expense increased to $266,000 (1.5% of net sales) for
the quarter ended March 31, 1997 from $259,000 (1.0% of net sales) in the
comparable period last year, an increase of 2.7%. Interest expense increased to
$650,000 (2.4% of net sales) in the nine months ended March 31, 1997 from
$592,000 (1.6% of net sales) in the comparable period last year, an increase of
9.8%. The increase in both the three and nine months ended March 31, 1997
resulted from increased utilization of the factoring arrangement and seasonal
line of credit from Heller Financial.

Net Income. Net income increased to $2,254,000, $0.48 per common share, for the
third quarter ended March 31, 1997 from $1,892,000, $.40 per common share, in
the comparable period last year. Net income decreased to $225,000, $0.05 per
common share, for the nine months ended March 31, 1997 from $1,353,000, $0.33
per common share, in the comparable period last year. The increase in net income
for the three months ending March 31, 1997 was due to reduced operating expenses
and a decrease in the 




                                       10
<PAGE>   11

effective tax rate to 0%, reflecting use of available net
operating losses, compared to an effective tax rate of 35% in the comparative
period last year, partially offset by reduced net sales and gross profit.

The decrease in net income for the nine months ending March 31, 1997 was due to
reduced sales and gross profit, partially offset by reduced operating expenses
and a lower tax provision.

LIQUIDITY AND CAPITAL RESOURCES

Net cash used in operating activities for the nine months ended March 31, 1997
was $1,406,000, compared to $10,376,000 in the comparable period last year,
resulting from reduced inventory build, lower accounts receivable, partially
offset by reduced accounts payable.

At March 31, 1997, working capital was approximately $10,248,000, compared to
approximately $15,651,000 at March 31, 1996. This reduction in working capital
was due to losses incurred in the fourth quarter of fiscal 1996 partially offset
by a 18.7% decrease in inventory from March 31, 1996 to March 31, 1997. Due to
the seasonal nature of the business, inventory levels at March 31, 1997 and June
30, 1996 are not comparable.

The Company amended its accounts receivable, inventory, seasonal overadvance and
factoring services arrangement with Heller Financial, Inc. ("Heller") pursuant
to which the Company sells to Heller all of the Company's accounts receivable at
their net invoice price less a commission of 0.675%, up to $75 million in gross
sales and 0.575% thereafter, with no minimum or ancillary fees. Advances are
made without recourse for the financial inability of the customer to pay with
respect to all accounts receivable approved by Heller. The Company bears the
entire risk of non-approved receivable and accounts receivable returned by the
factor to the Company. Prior to Heller's payment, the Company may draw
short-term advances from Heller up to 80% of the uncollected receivable, which
advances bear interest at an annual rate of 3/4% over the prime rate established
from time to time by Bank of America (8.5% at March 31, 1996). Heller collects
such advances and interest by offsetting against amounts due to the Company upon
the collection of factored receivables. In addition, the Company may draw
short-term advances from Heller of (i) up to 50% of eligible inventory which is
current season inventory and (ii) up to 40% prior to October 31, and up to 25%
during the period between November 1 and June 30, in each case of eligible
inventory which is not current season inventory, less such reserves as Heller
elects to establish.



                                       11
<PAGE>   12

The Company's short-term advances are limited to a maximum of $6,000,000 or
$1,000,000 in excess of the Company's projected short-term advance requirements,
whichever is less. The Company may also borrow seasonal overadvances of up to
$1,000,000 from September 1 to September 30, $2,000,000 from October 1 to
October 31, $2,500,000 from November 1 to November 30, $3,000,000 from December
1 to January 31, $2,500,000 from February 1 to February 28, $1,500,000 from
March to March 31 and $500,000 from April 1 to May 31 of each year. The
inventory advances and the overadvances bear interest at an annual rate of 2%
over the prime rate established from time to time by Bank of America. Finally,
the Company may request Heller to issue guarantees for the company's purchase of
raw materials for up to $575,000 at any one time. Under the company's agreement
with Heller, the maximum credit available to the Company at any time is limited
to $26 million. The Company's agreement with Heller has a term expiring on
August 19, 1997, after which time either party may terminate upon 60 days
written notice.

The Company's obligations to Heller are secured by the Company's accounts
receivable, inventory, general intangibles, other than trademarks or trade
names, and cash deposit accounts.

On November 9, 1995, the Company completed a public offering of 2,070,000 shares
of Common Stock at a price of $6.50 per share. The offering raised approximately
$8,067,000, net of offering expenses.

The Company believes that the net proceeds from the public offering, the
increased availability under its amended credit agreement with Heller combined
with cash flow to be generated from future operations will enable it to meet its
working capital requirements for the foreseeable future.

The Company has no material commitments for capital expenditures.



                                       12
<PAGE>   13

                           PART II - OTHER INFORMATION

Item 1.  Legal Proceedings. None

Item 2.  Changes in Securities. None

Item 3.  Defaults Upon Senior Securities. None

Item 4.  Submission of Matters to a vote of Security Holders.
         None

Item 5.  Other Information.

Sale of Common Stock

                  On May 7, 1997, American Industries, Inc., an Oregon
corporation ("American"), consummated the acquisition (the "Acquisition") of
1,096,185 shares (the "Sirena Stock") of the common stock of the Company, par
value $0.01 per share (the "Common Stock"), from Signal Capital Corporation, a
Delaware corporation ("Signal"), representing all shares of Common Stock held by
Signal. The purchase price of the Sirena Stock was $3.0625 per share for an
aggregate cash purchase price of $3,357,067.

                  As a result of the Acquisition, American owns approximately
1,500,000 shares (or 32.4%) of the issued and outstanding Common Stock. Prior to
the Acquisition, American owned approximately 412,000 shares (or 9%) of the
issued and outstanding Common Stock. In connection with the Acquisition, Signal
will cause its three designees on the Company's Board of Directors (the "Board")
to submit their resignations as directors of the Company. American has indicated
that it expects to seek representation on the Board. 

License Agreement

        L.C. Licensing, Inc., a wholly owned subsidiary of Liz Claiborne, Inc.
("Liz Claiborne"), has granted the Company the exclusive right to use the
trademarks LIZ CLAIBORNE and ELISABETH in connection with the manufacture,
advertising, merchandising, promotion, sale and distribution of women's swimwear
and cover-ups in the United States and Puerto Rico. This license terminates on
June 30, 2000, unless renewed by the Company, provided the Company achieves
certain sales targets and Liz Claiborne approves such renewal. The Company is
obligated to pay certain guaranteed minimum royalties on specified dates. The
license may be terminated earlier by Liz Claiborne under certain circumstances,
including the Company's failure to pay the guaranteed minimum royalties or if
annual net sales do not meet certain prescribed sales minimums. No assurance can
be given that the Company will achieve adequate sales in the future to generate
the guaranteed minimum royalties.

        The license may not be assigned or otherwise transferred by the Company
without the prior written consent of Liz Claiborne. The Company has a right of
first refusal to act as licensee under a license agreement which Liz Claiborne
may desire to enter with an unaffiliated licensee with respect to license rights
outside of the United States, Puerto Rico and Canada. Each year of the term of
the license, the Company must prepare at least eighteen (18) groupings comprised
of different styles of swimwear and cover-ups to be sold in connection with the
Liz Claiborne trademarks, which must be approved by Liz Claiborne. The designs,
materials, packaging, advertising and artwork of the LIZ CLAIBORNE and ELISABETH
collections must be approved by, and are the sole property of, Liz Claiborne.
The Company must obtain the prior written consent of Liz Claiborne with respect
to channels of distribution utilized for the collections.

        Pursuant to the terms of the license agreement, the Company is subject
to certain financial covenants, including, but not limited to, debt to equity
ratios. The license agreement prohibits the Company from planning for, engaging
in, or having any ownership interest in any business involved in the
manufacture, advertising, promotion, sale or distribution of any women's 
swimwear or swimwear cover-ups produced bearing or sold under or in association
with any trademark owned by or associated with any nationally known fashion
designer (individual or entity) or apparel brand which competes with Liz
Claiborne's apparel products and in substantially similar channels of
distribution. This prohibition does not extend to the marketing and sale of
women's swimwear and swimwear cover-ups under the "Anne Klein" trademarks
currently licensed to the Company and/or owned by Anne Klein & Company. The
Company is required to spend specified minimum amounts on advertising for the
collections, and advertising programs must be presented to, and approved by,
Liz Claiborne. In consideration of the license, the Company pays Liz Claiborne
a royalty based upon the net sales of the collections.



                  


                                       13
<PAGE>   14
Item 6.  Exhibits and Reports on Form 8-K.

                  (a)   Exhibits. 

                        10.1  License Agreement By and Between L.C. Licensing, 
                              Inc. and Sirena Apparel Group, Inc.

                  (b)   Reports on Form 8-K. None



                                       14
<PAGE>   15
                                   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.


                                   THE SIRENA APPAREL GROUP, INC.


Date:   May 12, 1997               By /s/ HENRY R. MANDELL
        ------------                  ---------------------
                                      Henry R. Mandell
                                      Executive Vice President
                                      Chief Financial Officer
                                      (Duly Authorized Officer and Principal
                                      Financial and Chief Accounting Officer)



                                       15
<PAGE>   16


                                 EXHIBIT INDEX



EXHIBIT
 NUMBER                            DESCRIPTION


  10.1          License Agreement By and Between L.C. Licensing,
                Inc. and Sirena Apparel Group, Inc.

  27            Financial data schedule.     




                                       16