<PAGE>
 
               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  May 3, 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        0-27348

                            K&G Men's Center, Inc.
--------------------------------------------------------------------------------
            (Exact name of registrant as specified in its charter)


          Georgia                                                  58-1898817 
--------------------------------------------------------------------------------
(State or other jurisdiction of  (I.R.S. Employer incorporation or organization)
Identification Number)

1225 Chattahoochee Avenue, N.W.                                         30318
--------------------------------------------------------------------------------
(Address of principal executive offices)                              (Zip Code)

                                (404) 351-7987
--------------------------------------------------------------------------------
             (Registrant's telephone number, including area code)

                                     None
--------------------------------------------------------------------------------
  (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 [_]
     
          APPLICABLE ONLY TO CORPORATE ISSUERS:

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

          Common Stock, $.01 Par Value, 10,142,420 shares outstanding as of May
          28, 1998.
<PAGE>
 
                    K&G MEN'S CENTER, INC. AND SUBSIDIARIES
                              INDEX TO FORM 10-Q
                                  MAY 3, 1998

<TABLE>
Part I.   Financial Information
<S>                                                                                            <C>                          
          Item 1.   Financial Statements
 
                    Consolidated Balance Sheets ........................................       3

                    Consolidated Statements of Operations ..............................       4

                    Consolidated Statements of Cash Flows ..............................       5

                    Condensed Notes to the Financial Statements ........................       6

          Item 2.   Management's Discussion and Analysis of
                    Financial Condition and Results of Operations.......................       7-9

          Item 3.   Quantitative and Qualitative Disclosure about
                    Market Risk.........................................................       9

Part II.  Other Information

          Item 6.   Exhibits and Reports on Form 8-K....................................       10

Signatures..............................................................................       11
</TABLE> 

                                       2
<PAGE>
 
                    K&G MEN'S CENTER, INC. AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS

<TABLE> 
<CAPTION> 
                                                       February 1, 1998              May 3, 1998
                                                       ----------------              -----------
                                                                                     (unaudited)
                                                                                     -----------
<S>                                                   <C>                          <C>   
                                        ASSETS
CURRENT ASSETS:
     Cash & cash equivalents                                $ 3,631,000              $ 5,889,000    
     Marketable securities                                   17,678,000               13,233,000         
     Accounts receivable                                      1,435,000                1,895,000         
     Merchandise inventory                                   20,948,000               27,497,000         
     Other assets                                               869,000                1,170,000         
                                                         --------------            -------------       
         Total current assets                                44,561,000               49,684,000         
PROPERTY AND EQUIPMENT, net                                   2,927,000                3,960,000         
OTHER ASSETS, net                                               443,000                  450,000         
                                                         --------------            -------------       
         Total assets                                       $47,931,000              $54,094,000        
                                                         ==============            =============       
                                                                                                         
                         LIABILITIES AND SHAREHOLDERS' EQUITY                                                 
CURRENT LIABILITIES:                                                                                     
     Accounts payable                                       $ 5,432,000              $10,567,000    
     Sales tax payable                                          863,000                  908,000                
     Accrued expenses                                         1,880,000                1,471,000         
     Income taxes payable                                     1,361,000                  505,000         
                                                         --------------            -------------
         Total current liabilities                            9,536,000               13,451,000         
                                                         --------------            -------------              
LONG-TERM DEBT                                                  205,000                  205,000   
                                                         --------------            -------------       
MINORITY INTEREST                                               373,000                  413,000     
                                                         --------------            -------------
SHAREHOLDERS' EQUITY:                                                                                    
      Common stock                                              101,000                  102,000                                   
      Additional paid-in capital                             25,182,000               26,067,000               
      Retained earnings                                      12,534,000               13,856,000               
                                                         --------------            -------------          
         Total shareholders' equity                          37,817,000               40,025,000               
                                                         --------------            -------------       
         Total liabilities and shareholders' equity         $47,931,000              $54,094,000               
                                                         ==============            =============
</TABLE> 
 
See accompanying Condensed Notes to the Financial Statements.

                                       3
<PAGE>
 
                    K&G MEN'S CENTER, INC. AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (UNAUDITED)
 
<TABLE> 
<CAPTION>  
                                                                     Three Months Ended
                                                    --------------------------------------------------
                                                          May 4, 1997                 May 3, 1998
                                                    -----------------------       --------------------
<S>                                                 <C>                           <C> 
NET SALES                                                       $23,742,000                $30,309,000
COST OF SALES, including occupancy cost                          18,290,000                 23,428,000
                                                    -----------------------       --------------------
GROSS PROFIT                                                      5,452,000                  6,881,000
 
SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES                     3,792,000                  4,937,000
                                                    -----------------------       --------------------
OPERATING INCOME                                                  1,660,000                  1,944,000
 
OTHER INCOME (EXPENSES):
  Interest expense                                                   (9,000)                    (9,000)
  Other income, net                                                 292,000                    306,000
                                                    -----------------------       --------------------
INCOME BEFORE INCOME TAXES AND MINORITY
  INTEREST IN EARNINGS OF AFFILIATES                              1,943,000                  2,241,000
 
PROVISION FOR INCOME TAXES                                          762,000                    879,000
                                                    -----------------------       --------------------
INCOME BEFORE MINORITY INTEREST IN
  EARNINGS OF AFFILIATES                                          1,181,000                  1,362,000
 
MINORITY INTEREST IN EARNINGS
  OF AFFILIATES                                                     (35,000)                   (40,000)
                                                    -----------------------       --------------------
NET INCOME APPLICABLE TO COMMON STOCK                           $ 1,146,000                $ 1,322,000
                                                    =======================       ====================
 
BASIC EARNING PER SHARE                                         $      0.11                $      0.13
                                                    =======================       ====================
 
DILUTED EARNING PER SHARE                                       $      0.11                $      0.13
                                                    =======================       ====================
 
WEIGHTED AVERAGE COMMON
  SHARES OUTSTANDING                                             10,105,319                 10,132,453
                                                    =======================       ====================

WEIGHTED AVERAGE COMMON  SHARES
  OUTSTANDING ASSUMING DILUTION                                  10,166,940                 10,157,679
                                                    =======================       ====================
</TABLE> 
 
See accompanying Condensed Notes to the Financial Statements.
 

                                       4
<PAGE>
 
                    K&G MEN'S CENTER, INC. AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (UNAUDITED)
 
 
<TABLE> 
<CAPTION>  
                                                                                         Three Months Ended
                                                                            May 4, 1997                       May 3, 1998
                                                                            -----------                       ----------- 
<S>                                                                         <C>                               <C>   
Cash Flows from Operating Activities: 
     Net income                                                             $ 1,146,000                       $ 1,322,000  
     Adjustments to reconcile net income to net cash                                                                 
      provided by (used for) operating activities:                                                                    
        Minority interest in earnings of affiliates                              35,000                            40,000  
        Depreciation and amortization                                           117,000                           152,000   
        Changes in assets and liabilities:                                                                              
          Accounts receivable                                                  (629,000)                         (460,000) 
          Merchandise inventory                                              (2,589,000)                       (6,549,000) 
          Other assets, net                                                  (1,155,000)                         (301,000) 
          Accounts payable                                                    1,385,000                         5,135,000  
          Sales tax payable                                                     (76,000)                           45,000   
          Accrued expenses                                                      (45,000)                         (409,000) 
          Income taxes payable                                                 (101,000)                          (70,000) 
                                                                            -----------                       -----------  
            Total adjustments                                                (3,058,000)                       (2,417,000)  
                                                                            -----------                       -----------  
            Net cash used in operating                                                                                      
              activities                                                     (1,912,000)                       (1,095,000)  
                                                                            -----------                       -----------   

Cash Flows from Investing Activities:
     Additions to property and equipment                                       (192,000)                       (1,180,000) 
     Sale of marketable securities                                            3,688,000                        12,300,000 
     Purchase of marketable securities                                       (3,500,000)                       (7,855,000) 
     Other assets                                                                (7,000)                          (11,000)
                                                                            -----------                       -----------  
            Net cash (used in) provided by                                                                                
              investing activities                                              (11,000)                        3,254,000 
                                                                            -----------                       -----------

Cash Flows from Financing Activities:  
     Common stock issued                                                         61,000                            99,000 
                                                                            -----------                       -----------  
            Net cash provided by financing                                                                                
              activities                                                         61,000                            99,000  
                                                                            -----------                       -----------  
Net (Decrease) Increase in Cash and Cash Equivalents                         (1,862,000)                        2,258,000
Cash and Cash Equivalents at Beginning of Period                              6,440,000                         3,631,000
                                                                            -----------                       -----------  

Cash and Cash Equivalents at End of Period                                  $ 4,578,000                       $ 5,889,000
                                                                            ===========                       ===========   
Supplemental Disclosure of Cash Paid For:

   Interest                                                                 $     2,000                       $    12,000 
                                                                            ===========                       ===========   
   Income taxes                                                             $   864,000                       $   948,000 
                                                                            ===========                       ===========   
</TABLE> 
 
See accompanying Condensed Notes to the Financial Statements.

                                       5
<PAGE>
 
                    K&G MEN'S CENTER, INC. AND SUBSIDIARIES
                  CONDENSED NOTES TO THE FINANCIAL STATEMENTS
                                  (UNAUDITED)


1. UNAUDITED FINANCIAL INFORMATION

     The accompanying financial statements of K&G Men's Center, Inc. and
Subsidiaries as of May 3, 1998 and May 4, 1997, and for the three months then
ended, are unaudited. In the opinion of the Company's management, these
statements include all adjustments considered necessary for a fair presentation
of financial condition and results of operations.

     Because of the seasonality of the Company's business, results for any
quarter are not necessarily indicative of the results that may be achieved for
the full year.  In addition, quarterly results of operations are affected by the
timing and amount of sales and cost associated with the opening of new stores.


2. EARNINGS PER SHARE
 
     Effective February 3, 1997, the Company Adopted Statement of Financial
Accounting Standards ("SFAS") No. 128, "Earnings Per Share", which establishes
new standards for computing and presenting earnings per share ("EPS")
information.  The adoption of SFAS 128 did not have a material effect on the
Company's currently or previously reported earnings per share.

     Basic earnings per share was computed by dividing net income by the
weighted average number of shares of common stock outstanding during the year.
Diluted earnings per share for the three months ended May 3, 1998 and May 4,
1997 were determined on the assumption that the net weighted average outstanding
stock options granted under the Company's plans (the Company's only potentially
dilutive shares) of 25,226 and 61,621 shares, respectively, had been exercised
on May 3, 1998 and May 4, 1997, respectively.  Such calculations were not
dilutive to earnings for the periods presented.

                                       6
<PAGE>
 
Item 2.   Management's Discussion and Analysis of Financial Condition and
          Results of Operations.


RESULTS OF OPERATIONS

     The following table sets forth, for the periods indicated, statements of
operations data expressed as a percentage of net sales:

<TABLE> 
<CAPTION> 
                                                                      Three Months Ended
                                                              -------------------------------
                                                               May 4,                  May 3,    
                                                                1997                    1998    
                                                              -------                 -------    
<S>                                                           <C>                     <C>       
Net sales                                                      100.0%                  100.0%    
Cost of sales, including occupancy cost                         77.0                    77.3    
                                                               -----                   -----    
Gross profit                                                    23.0                    22.7    
Selling, general and administrative expenses                    16.0                    16.3    
                                                               -----                   -----    
Operating income                                                 7.0                     6.4    
Other income (expenses):                                                                        
   Interest expense                                             (0.0)                   (0.0)    
   Other income, net                                             1.2                     1.0    
                                                               -----                   -----    
Income before income taxes and minority interest                                                
   in earnings of affiliates                                     8.2                     7.4    
Provision for income taxes                                       3.2                     2.9    
                                                               -----                   -----    
Income before minority interest in earnings of                                                  
 affiliates                                                      5.0                     4.5    
                                                                                                
Minority interest in earnings of affiliates                     (0.2)                   (0.1)    
                                                               -----                   -----    
 Net income                                                      4.8%                    4.4%    
                                                               =====                   =====     
</TABLE>

     Net sales of  $30.3 million for the three months ended May 3,1998
represents an increase of  $6.6 million, or 27.7% over net sales of $23.7
million for the three months ended May 4, 1997.  On a comparable store basis,
net sales increased 8.8% for the three months ended May 3, 1998, compared to
11.9% for the three months ended May 4, 1997.  The increase in net sales is a
result of the Company's strong comparable store sales and the opening of three
new stores during the three months ended May 3, 1998 and store openings that
occurred in 1997.  One of the new stores was opened in Philadelphia in March
1998 and the other two stores were opened in Houston in April 1998.
 
     Gross profit increased $1.4 million, or 26.2% to $6.9 million for the three
months ended May 3, 1998. Gross profit as a percentage of sales decreased to
22.7% for the three months ended May 3, 1998 from 23.0% for the three months
ended May 4, 1997.  The decrease in gross profit, as a percentage of sales, is
mainly due to the Company's new stores having a higher occupancy cost as a
percentage of net sales.

     Selling, general and administrative expenses increased  $1.1 million or
30.2%, to $4.9 million for the three months ended May 3, 1998.  Selling, general
and administrative expenses as a percentage of net sales increased to 16.3% for
the three months ended May 3, 1998, from 16.0% for the three months ended May 4,
1997.  The increase in selling, general and administrative expenses as a
percentage of net sales is due to increased advertising cost as a percentage of
net sales due to new store openings partially offset by a decrease in payroll
cost as a percentage of net sales.  In addition, store opening costs were higher
as a percentage of net sales as the Company opened three stores in the three
months ended May 3,

                                       7
<PAGE>
 
1998 compared to two stores in the three months ended May 4, 1997.  Store
opening cost is expensed in the quarter in which the store is opened.

     Operating income increased to $1.9 million for the three months ended May
3, 1998 compared to $1.7 million for the three months ended May 4, 1997.
Operating income as a percentage of net sales decreased to 6.4% for the three
months ended May 3, 1998 from 7.0% for the three months ended May 4, 1997.

     The factors discussed above resulted in an increase in net income to $1.3
million for the three months ended May 3, 1998 from $1.1 million for the three
months ended May 4, 1997.

QUARTERLY RESULTS, SEASONALITY AND INFLATION

     The Company's business is seasonal in nature with the fourth quarter, which
includes the holiday selling season, accounting for the largest percentage of
the Company's net sales volume and operating profit in any given year.  Because
of the seasonality of the Company's business, results for any quarter are not
necessarily indicative of the results that may be achieved for the full year.
In addition, quarterly results of operations are affected by the timing and
amount of sales and costs associated with the opening of new stores.

     Inflation can affect the cost incurred by the Company in the purchases of
its merchandise, the leasing of its stores and certain components of its
selling, general and administrative expenses.  To date, inflation has not
adversely affected the Company's business, although there can be no assurance
that inflation will not have a material adverse effect in the future.

LIQUIDITY AND CAPITAL RESOURCES

     The Company has historically funded its working capital and capital
expenditure requirements from proceeds from the sale of equity securities, net
cash provided by operating activities and through borrowings from related
parties and under its bank credit facilities. The Company had working capital of
$36.2 million and $35.0 million at May 3, 1998 and February 1, 1998,
respectively. The principal use of working capital is to purchase inventory. The
Company had $19.1 million in cash and marketable securities as of May 3, 1998.
 
     The Company's capital expenditures totaled $1,180,000, and $192,000 for the
three months ended May 3, 1998 and May 4, 1997, respectively. These capital
expenditures were primarily used to open new stores and upgrade the Company's
management information systems.
 
     The Company currently has a bank credit facility, which expires June 30,
2000, and permits borrowings of up to $5.0 million. The interest rate on this
facility is the prime rate less 1% or LIBOR plus 1.5% per annum, at the option
of the Company. As of May 3, 1998, K&G had no debt outstanding on this facility.

     The Company's primary capital requirements are for the opening of new
stores. The Company estimates that the total cash required to open a 15,000 to
20,000 square foot prototype store, including inventory, store fixtures and
equipment, leasehold improvements, other net working capital and pre-opening
costs (primarily stocking and training), typically ranges from $625,000 to
$900,000 depending on landlord assistance and vendor financing. The Company
intends to open an additional seven stores in the remainder of fiscal 1998 and
10 to 12 new stores in fiscal 1999.  In addition, the Company will spend
approximately $1.5 million on its point-of-sale and management information
systems over the next year.   The Company believes that the proceeds of its
securities offerings, internally generated funds, existing

                                       8
<PAGE>
 
cash balances and its bank credit facility will be adequate to fund its
anticipated needs for the foreseeable future.

     The Company has completed a preliminary evaluation of its management
information systems to determine their readiness in terms of Year 2000 issues,
and has determined that its point-of-sale cash register systems are the only
application that will require significant modification in order to be Year 2000
ready.  The Company has developed a plan to replace its current registers with a
new PC-based register system.  The costs to purchase and implement these
register systems are estimated to total approximately $1.5 million.  Under the
Company's plan, the PC registers will be fully implemented and operational at
all of its store locations prior to December 31, 1999.  The Company does not
believe that the costs to modify any of its other current systems to be Year
2000 ready will be material to its financial condition or results of operations.
However, the Company does not currently have any information concerning the Year
2000 readiness of its suppliers or other third parties with which the Company
conducts business, and in the event that any of the Company's significant
suppliers or other third parties with which the Company conducts business do not
successfully and timely achieve Year 2000 readiness, the Company's business or
operations could be adversely affected.


"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995:

     Certain statements contained in the body of this Report are "forward-
looking statements" within the meaning of the Reform Act.  When used herein, the
words "anticipates," "intends," "plans," "believes," "estimates," "expects" and
similar expressions are intended to identify forward-looking statements.  Such
forward-looking statements involve known and unknown risks and uncertainties,
and other factors that may cause the actual results, performance or achievements
of the Company to be materially different from any future results, performance
or achievements expressed or implied by such forward-looking statements.  Such
factors include, but are not limited to, (i) the youth of the Company's store
base; (ii) risks related to the Company's expansion strategy; (iii) potential
inability to sustain comparable store sales growth; (iv) merchandise and market
trends; (v) vendor relationships; (vi) reliance on key personnel and (vii) the
impact of economic conditions.  These and other factors affecting the Company's
future performance are further detailed in publicly available reports filed from
time to time by the Company with the Securities and Exchange Commission, such as
the Company's Annual Report on Form 10-K for the fiscal year ended February 1,
1998.  Further, any forward-looking statements speaks only as of the date on
which such statement is made, and the Company undertakes no obligation to update
any forward-looking statement or statements to reflect events or circumstances
after the date on which such statement is made or to reflect the occurrence of
unanticipated events.  New factors emerge from time to time, and it is not
possible for management to predict all of such factors.  Further, management
cannot assess the impact of each such factor on the Company's business or the
extent to which any factor, or combination of factors, may cause actual results
to differ materially from those contained in any forward-looking statements.


Item 3.   Quantitative and Qualitative Disclosure about Market Risk.

None.

                                       9
<PAGE>
 
                            K&G MEN'S CENTER, INC.

                          PART II - OTHER INFORMATION



Item 6.   Exhibits and Reports on Form 8-K

(a)  Exhibits:

          Exhibit 27.  Financial Date Schedule


(b)  Reports on Form 8-K - None

                                       10
<PAGE>
 
                            K&G MEN'S CENTER, INC.

                                  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.


                                        K&G Men's Center, Inc.
                                               (Registrant)



Date:  June 3, 1998                     /s/  Stephen H. Greenspan
      ---------------                   --------------------------------
                                        Stephen H. Greenspan
                                        Chairman of the Board,
                                        President and Chief Executive Officer
                                        (principal executive officer)
 

Date:  June 3, 1998                     /s/  John C. Dancu                  
      ---------------                   --------------------------------    
                                        John C. Dancu                       
                                        Chief Operating and Financial Officer 
                                        (principal financial and accounting 
                                        officer)                             

                                      11