SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q


                   Quarterly Report Under Section 13 or 15(d)
                     of the Securities Exchange Act of 1934

For Quarter Ended:                                       Commission File No.:
  August 31, 1996                                             0-16442

                             FIRST TEAM SPORTS, INC.
             (Exact name of Registrant as specified in its charter)

    Minnesota                                                 41-1545748      
(State or other jurisdiction                               (I.R.S. Employer
of incorporation or organization)                         Identification No.)

                               1201 Lund Boulevard
                             Anoka, Minnesota 55303
                    (Address of principal executive offices)
               Registrant's telephone number, including area code:

                                 (612) 576-3500

                     --------------------------------------

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  issuer's  classes of
common stock,  as of the latest  practicable  date:  5,742,967  shares of Common
Stock, $.01 par value per share, outstanding as of October 8, 1996.



<PAGE>


                                     PART I
                              FINANCIAL INFORMATION


Item 1.           Financial Statements


                                FIRST TEAM SPORTS, INC.
                             CONSOLIDATED BALANCE SHEETS
                        August 31, 1996 and February 29, 1996

<TABLE>
<CAPTION>

                                                             August 31,              February 29,
                    ASSETS                                      1996                     1996
                                                           ------------             ------------
                                                            (Unaudited)
<S>                                                         <C>                      <C>

CURRENT ASSETS
  Cash and cash equivalents                                    $616,399               $2,166,863
  Receivables:
    Trade, less allowance for
      doubtful accounts of $748,000 at
      August 31, 1996 and $489,000 at
      February 29, 1996                                      18,562,800               16,228,666
      Refundable income taxes                                                            155,146
  Inventory                                                  24,027,859               22,813,850
  Prepaid expenses                                              686,963                  960,079
  Deferred income taxes                                         827,000                  827,000
                                                           ------------             ------------

    Total current assets                                    $44,721,021              $43,151,604
                                                           ------------             ------------

PROPERTY AND EQUIPMENT, at cost
  Land                                                         $600,000                 $600,000
  Building                                                    5,024,767                4,825,740
  Production equipment                                        4,637,768                4,069,078
  Office furniture and equipment                              1,760,781                1,509,120
  Warehouse equipment                                           331,850                  315,509
  Vehicles                                                       46,925                   46,925
                                                           ------------             ------------
                                                            $12,402,091              $11,366,372
  Less accumulated depreciation                               2,169,689                1,511,689
                                                           ------------             ------------

                                                            $10,232,402               $9,854,683
                                                           ------------             ------------

OTHER ASSETS
  License agreements, less accumulated
    amortization of $2,749,000 at August
    31, 1996 and $2,459,000 at February
    29, 1996                                                 $2,355,289               $2,645,268
  Other                                                         307,046                  306,247
                                                           ------------             ------------

                                                             $2,662,335               $2,951,515
                                                           ------------             ------------

                                                            $57,615,758              $55,957,802
                                                           ============             ============
</TABLE>


                 See Notes to Consolidated Financial Statements



<PAGE>




                                FIRST TEAM SPORTS, INC.
                       CONSOLIDATED BALANCE SHEETS (CONTINUED)
                        August 31, 1996 and February 29, 1996
<TABLE>
<CAPTION>

                                                             August 31,             February 29,
   LIABILITIES AND SHAREHOLDERS' EQUITY                        1996                     1996
                                                           ------------             -------------
                                                           (Unaudited)
<S>                                                         <C>                      <C>

CURRENT LIABILITIES
  Notes payable to bank                                     $12,354,250               $5,268,000
  Current maturities of
    long-term debt                                              856,913                  943,060
  Accounts payable, trade                                     3,027,003                9,462,883
  Accrued expenses                                              846,441                2,532,676
  Income taxes                                                  154,156                      -
                                                           ------------            -------------

    Total current liabilities                               $17,238,763              $18,206,619
                                                           ------------            -------------




LONG-TERM DEBT,
    less current maturities                                  $6,345,345              $6,880,360
                                                           ------------           -------------


DEFERRED INCOME TAXES                                          $440,000                $440,000
                                                           ------------           -------------


DEFERRED REVENUE                                               $600,000                $600,000
                                                           ------------           -------------


SHAREHOLDERS' EQUITY
  Common Stock, par value $.01 per
    share; authorized 10,000,000
    shares; issued and outstanding
    5,738,793 shares at August 31, 1996,
    5,721,000 shares at February 29, 1996                       $57,388                $57,210
  Additional paid-in capital                                  9,491,281              9,396,802
  Retained earnings                                          23,442,981             20,376,811
                                                           ------------           ------------

                                                            $32,991,650            $29,830,823
                                                           ------------           ------------

                                                            $57,615,758            $55,957,802
                                                           ============           ============



</TABLE>

                 See Notes to Consolidated Financial Statements

<PAGE>
                                FIRST TEAM SPORTS, INC.
                           CONSOLIDATED STATEMENTS OF INCOME
                                     (Unaudited)

<TABLE>
<CAPTION>

                                     Three months ended                                Six months ended
                                         August  31,                                      August  31,
                                 1996                   1995                     1996                   1995
                         ---------------------   --------------------    ---------------------   --------------------
<S>                          <C>                      <C>                    <C>                    <C>


Net sales                    $15,634,944              $23,229,805            $46,221,743            $54,006,268

Cost of goods sold            11,474,675               15,979,035             32,978,677             37,238,922
                         ---------------------   --------------------    ---------------------   --------------------

Gross profit                  $4,160,269               $7,250,770            $13,243,066            $16,767,346
                         ---------------------   --------------------    -----------------------   --------------------

Operating expenses:
  Selling                     $1,954,914               $2,183,890             $4,345,468             $4,777,096
  General and
    administrative             1,484,564                1,879,409              3,421,357              3,921,614
                         ---------------------   --------------------    ---------------------   --------------------

                              $3,439,478               $4,063,299             $7,766,825             $8,698,710
                         ---------------------   --------------------    ---------------------   --------------------

  Operating income              $720,791               $3,187,471             $5,476,241             $8,068,636

Other income
  (expense):
  Interest expense              (399,812)                (195,370)              (723,071)              (459,329)
  Other                                0                        0                      0                      0
                          ---------------------   --------------------    ---------------------   --------------------
   Income before income
    taxes                       $320,979               $2,992,101             $4,753,170             $7,609,307

 Income taxes                    110,000                1,040,000              1,687,000              2,775,000
                          ---------------------   --------------------    ---------------------   --------------------

    Net income for the
     period                     $210,979               $1,952,101             $3,066,170             $4,834,307
                          =====================   ====================    =====================   ====================



 Net income per
  common share:                    $0.04                    $0.32                  $0.52                  $0.80
                          =====================   ====================    =====================   ====================

 Weighted average
   number of common
   shares outstanding
   including Common
   Share equivalents            5,983,901               6,089,271              5,931,080              6,062,450
                          =====================   ====================    =====================   ====================

</TABLE>

                 See Notes to Consolidated Financial Statements



<PAGE>



                                FIRST TEAM SPORTS, INC.
                         CONSOLIDATED STATEMENTS OF CASH FLOWS
                      For Six Months Ended August 31, 1996 and 1995
                                      (Unaudited)
<TABLE>
<CAPTION>


                                                             August 31,             August 31,
                                                                1996                    1995
                                                           --------------           ----------
<S>                                                          <C>                    <C>

CASH FLOWS FROM OPERATING ACTIVITIES
   Net Income                                                $3,066,170             $4,834,307
   Adjustments required to reconcile net
     income to net cash provided by (used in)
     operating activities:
      Depreciation                                              658,000                315,000
      Amortization                                              316,979                351,358
      Deferred income taxes                                       -                   (150,000)
     Change in assets and liabilities:
       Receivables                                           (2,178,988)            (1,424,418)
       Inventories                                           (1,214,009)              (615,278)
       Prepaid expenses                                         273,116                279,045
       Accounts payable                                      (6,435,880)              (448,144)
       Accrued expenses                                      (1,686,235)              (313,605)
       Income taxes                                             154,156                  1,000
                                                            ------------            ----------

       Net cash provided by
         (used in) operating activities                     ($7,046,691)            $2,829,265
                                                            ------------            ----------

CASH FLOWS FROM INVESTING ACTIVITIES
   Purchase of property and equipment                       ($1,035,719)           ($1,180,552)
   Other                                                        (27,799)               (78,815)
                                                            ------------            ----------

       Net cash used in investing activities                ($1,063,518)           ($1,259,367)
                                                            ------------            ----------

CASH FLOWS FROM FINANCING ACTIVITIES
   Net proceeds (payments) on short-term borrowings          $7,086,250              ($582,000)
   Principal payments on long-term
     borrowings                                                (621,162)              (626,891)
   Net proceeds from
     issuances of common stock 1996;
     17,750 shares, 1995; 90,338 shares                          94,657                467,472
                                                            -----------            -----------

     Net cash provided by (used in) financing activities     $6,559,745              ($741,419)
                                                            -----------            -----------

     Increase (decrease) in cash and
       cash equvalents                                      ($1,550,464)              $828,479

Cash and cash equivalents:
   Beginning                                                 $2,166,863               $601,394
                                                            -----------            -----------

   Ending                                                      $616,399             $1,429,873
                                                            ===========            ===========
</TABLE>

                 See Notes to Consolidated Financial Statements





<PAGE>


                             FIRST TEAM SPORTS, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

NOTE 1.

     The  consolidated  condensed  balance sheet as of August 31, 1996,  and the
consolidated  statements of operations for the three-month and six-month periods
ended  August 31, 1996 and August 31, 1995 and the  consolidated  statements  of
cash  flows for the  six-month  periods  then ended  have been  prepared  by the
Company without audit. In the opinion of management, all adjustments (consisting
only of normal recurring  accruals) necessary to present fairly the consolidated
financial position,  results of operations and cash flows at August 31, 1996 and
August 31,  1995 and for all periods  presented  have been made.  The  operating
results for the period ended August 31, 1996 are not  necessarily  indicative of
the operating results to be expected for the full fiscal year.

     Certain   information  and  footnote   disclosures   normally  included  in
consolidated   financial   statements  in  accordance  with  generally  accepted
accounting principles have been condensed or omitted.
<PAGE>

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


RESULTS OF OPERATIONS


     Net Sales.  Net sales were  $15.6  million in the second  quarter of fiscal
1997,  a decrease of 33% over the  comparable  quarter of fiscal 1996 when sales
were $23.2 million. Net sales for the first six-months of fiscal 1997 were $46.2
million,  compared to $54 million for the first  six-months  of fiscal  1996,  a
decrease of 14%.  In-line  roller  skates,  ice skates and roller hockey product
sales  decreased  35%, 98% and 66%,  respectively,  and accessory and part sales
increased  8% from the second  quarter of fiscal 1996 to fiscal  1997.  Sales of
in-line  roller  skates  accounted for  approximately  80% of total sales in the
second  quarter of fiscal 1997  compared to 82% in the second  quarter of fiscal
1996.  Sales of accessories and parts accounted for  approximately  18% of total
sales in the second quarter of fiscal 1997 compared to 11% in the second quarter
of fiscal 1996. Street hockey equipment  accounted for approximately 2% of total
sales in the second  quarter of fiscal 1997 compared to 4% in the second quarter
of fiscal  1996.  Ice skate sales were  insignificant  in the second  quarter of
fiscal 1997 compared to 3% of total sales in the second  quarter of fiscal 1996.
Sales to the Company's ten largest customers  accounted for 60% of the Company's
total  sales  in the  second  quarter  of  fiscal  1997  compared  to 55% of the
Company's sales in the second quarter of fiscal 1996.

     The  worldwide  markets  for the  Company's  products  continue to grow and
expand.  As a result the Company  was able to  continue to increase  its foreign
sales  outside of North America in the second  quarter of fiscal 1997.  Domestic
sales were 63% of total net sales in the second  quarter of fiscal 1997 compared
to 68% in the second quarter of fiscal 1996,  while export sales were 37% in the
second  quarter of fiscal 1997  compared to 32% in the second  quarter of fiscal
1996.  Export sales consisted of sales in Canada and outside North America of 1%
and 36% of total net sales in the second  quarter of fiscal 1997,  respectively,
compared to 12% and 20% in the second quarter of fiscal 1996, respectively.

     Several  factors  contributed  to the Company's  sales  performance  in the
second  quarter of fiscal 1997.  The lower  percentage  of domestic and Canadian
sales is a result of an overall  retail  slowdown in sporting  goods  purchases,
continued excess inventories in the marketplace and continued strong competition
with our mass merchant accounts.  With the soft retail environment in the United
States  and  Canada  the level of  customer  reorders  were well  below  Company
expectations.  The increase in the sales outside of North America is a result of
the Company's ability to capitalize on continued  industry growth in the foreign
market.
<PAGE>

     Gross Margin.  The Company's  gross margin  decreased  $3,090,501  (or 43%)
between the second quarter of fiscal 1997 and the second quarter of fiscal 1996.
Gross  margin as a percentage  of sales was 27% in the second  quarter of fiscal
1997 compared to 31% in the second  quarter of fiscal 1996.  The decrease in the
gross margin  percentage  is primarily  due to the overall  retail  slowdown and
continued excess retail inventories.  This has resulted in increased competition
and  gross  margin  pressure  at all  levels,  from  the mass  merchants  to the
specialty   shops.   The   Company's   UltraWheels   in-line   skate  sales  and
non-UltraWheels  in-line skate sales accounted for  approximately 60% and 40% of
total  in-line skate sales in the second  quarter of fiscal 1997,  respectively,
compared to 47% and 53% of total  in-line  skate sales in the second  quarter of
fiscal 1996.

     Operating  Expenses.  The  Company's  operating  expenses,  (consisting  of
Selling expenses and General and  Administrative  expenses) were $3,439,478,  or
22% of net sales in the second  quarter of fiscal 1997,  compared to $4,063,299,
or 17% of net sales in the second quarter of fiscal 1996.

Selling  expenses  decreased  $228,976 (or 11%),  between the second quarters of
fiscal 1997 and 1996, and were approximately 13% and 9% in the second quarter of
fiscal 1997 and 1996,  respectively.  The  decrease in Selling  expenses  can be
attributed to reduced commissions and endorsement  royalties associated with the
decreased sales volume.

General and  Administrative  expenses  decreased  $394,845  (or 21%) between the
second quarter of fiscal 1997 and 1996, and were  approximately 9% and 8% of net
sales in the second quarters of fiscal 1997 and 1996, respectively. The decrease
in General and Administrative  expenses in the second quarter of fiscal 1997 was
primarily due to savings  associated with the Company's new office and warehouse
facility,  the ability of  management  to respond  quickly to the reduced  sales
activity  and the  continued  efforts  by  management  to control  spending  and
expenses.

     Other Income and Expense.  Interest expense in the second quarter of fiscal
1997 was $399,812,  or 3% of net sales, compared to $195,370 or 1% of net sales,
in the second  quarter of fiscal  1996.  The  increase  in  Interest  expense is
primarily due to an increase in the use of the Company's bank line of credit and
the addition of the mortgage note  associated  with the Company's new office and
warehouse facility.

     Net Income.  Net income  decreased  $1,741,122  (or 89%) between the second
quarter of fiscal 1997 and 1996,  and earnings per share was $ .04 in the second
quarter of fiscal 1997  compared to $ .32 in the second  quarter of fiscal 1996.
The decrease in net income can be attributed  primarily to the decrease in sales
and gross margins as discussed above.
<PAGE>

LIQUIDITY AND CAPITAL RESOURCES

     The  Company's  cash and cash  equivalents  were  $616,399 as of August 31,
1996,  compared to $2,166,863 as of February 29, 1996.  The decrease in cash and
cash equivalents is a result of $7,046,691 of cash used in operating  activities
and $1,063,518 of cash used in investing  activities  being partially  offset by
$6,559,745  of cash  provided  by  financing  activities.  The net cash  used in
operating  activities  was primarily from the decrease in accounts  payable,  an
increase in  receivables  and inventory and net income for the quarter.  The net
cash used in  investing  activities  was  primarily  for the purchase of capital
assets.  The net cash provided by financing  activities  was primarily  proceeds
received on the Company's line of credit.

     The Company had net working  capital of  $27,482,258 as of August 31, 1996,
compared  to  $24,944,985  as of  February  29,  1996.  The  improvement  in the
Company's net working  capital was primarily  attributable to an increase in the
Company's receivables and inventory.

     The  Company's  debt-to-worth  ratio  was .7 to 1 as of  August  31,  1996,
compared to .9 to 1 as of February 29, 1996. The Company's long-term debt, which
consists  primarily of the mortgage note on the  Company's  office and warehouse
facility and obligations  under  endorsement  license  agreements,  less current
maturities,  was  $6,345,345 as of August 31, 1996.  As of August 31, 1996,  the
Company had revolving line of credit  established  with a bank that provides for
borrowings  of up to  $15,000,000,  of which  $12,354,250  was  outstanding.  In
addition,  the Company has a line of credit  established with the bank providing
for   borrowings  of  up  to  $1,000,000  for  the  purchase  of  equipment  and
improvements.  As of August 31, 1996,  approximately  $30,000 was outstanding on
this credit facility.

     The Company believes that its current cash position,  funds available under
existing bank arrangements and cash generated from profitable operations will be
sufficient  to finance  the cash flows for  operating  activities  at  projected
levels of sales through fiscal 1997.

<PAGE>


                                     PART II
                                OTHER INFORMATION


Item 4.   Submission of Matters to a Vote of Security Holders.

          (a)  The Company held its Annual Meeting on June 28, 1996.

          (b)  Proxies  for  the  Annual  Meeting  were  solicited  pursuant  to
               Regulation 14 under the  Securities  Exchange Act of 1934.  There
               was no  solicitation  in opposition to  management's  nominees as
               listed  in the proxy  statement,  and all of such  nominees  were
               elected.

               The  shareholders  set the number of  directors  at five (5) by a
               vote of  5,307,609  shares  in favor,  with  26,735  share  voted
               against and 30,604 shares abstaining.  The following persons were
               elected  to serve as  directors  of the  Company  until  the next
               annual meeting of shareholders with the following votes:
<TABLE>
<CAPTION>

                                                     Number of               Number of
               Nominee                               Votes For             Votes Withheld
<S>                                                  <C>                        <C>

               John J. Egart                         5,287,305                  77,643
               David G. Soderquist                   5,286,342                  78,606
               Joe Mendelsohn                        5,286,492                  78,456
               Timothy G. Rath                       5,285,517                  79,431
               Stanley E. Hubbard                    5,272,855                  92,093
</TABLE>

               The shareholders  ratified the appointment of McGladrey & Pullen,
               LLP as the  Company's  independent  auditors  for the fiscal year
               ending February 28, 1997 by a vote of 5,313,183  shares in favor,
               with 25,910 shares voted against and 25,855 shares abstaining.


Item 6.   Exhibits and Reports on Form 8-K

          (a)  Exhibits.  See Exhibit Index immediately  following the signature
               page of this Form 10-Q.

          (b)  Reports  on Form 8-K.  No  reports  on Form 8-K were filed by the
               Registrant during the quarter to which this Form 10-Q relates.


<PAGE>


                                   SIGNATURES

     Pursuant  to the  requirements  of  Section  13 or 15(d) 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.


                                        FIRST TEAM SPORTS, INC.


                                        By:  /s/ John J. Egart
                                             John J. Egart
                                             President and CEO



                                    and By:  /s/ Robert L. Lenius, Jr.
                                             Robert L. Lenius, Jr.
                                             Vice President and CFO




Dated:   October 8, 1996




<PAGE>


                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                           EXHIBIT INDEX TO FORM 10-Q

For Quarter Ended:                                 Commission File No.:  0-16422
August 31, 1996

      -------------------------------------------------------------------

                             FIRST TEAM SPORTS, INC.
      -------------------------------------------------------------------

Exhibit Number   Description

 3.1             Restated Articles  of Incorporation - incorporated by reference
                 to  Exhibit 3.1 to the Company's Annual Report on Form 10-K for
                 the fiscal year ended February 29, 1996

 3.2             Bylaws - incorporated  by  reference  to  Exhibit  3.2  to  the
                 Company's   Registration  Statement  on  Form  S-18  Reg.   No.
                 33-16345C

 4.1             Specimen  of Common Stock Certificate-incorporated by reference
                 to  4.1 to the Company's Annual  Report  on Form  10-K  for the
                 fiscal year ended February 28, 1991

 4.2             Certificate   of  Designations  of  Series  A  Preferred  Stock
                 (included in Restated Articles of Incorporation -  see  Exhibit
                 3.1)

 4.3             Rights Agreement dated as of March 15, 1996 between the Company
                 and Norwest Bank Minnesota, N.A. as Rights Agent - incorporated
                 by  reference  to  Exhibit  2.1  to  the Company's Registration
                 Statement on Form 8-A, Reg. No. 0-16422

 4.4             Form  of  Right  Certificate -  incorporated  by  reference  to
                 Exhibit   2.2   to   the   Company's  Registration Statement on
                 Form 8-A, Reg. No. 0-16422

 4.5             Summary of Rights to Purchase Share of Series A Preferred Stock
                 - incorporated by reference to Exhibit  2.3  to  the  Company's
                 Registration Statement of Form 8-A, Reg. No. 0-16422

 27              Financial Data Schedule (included in electronic version only)