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, 1997                                                 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:  5,789,499 shares of Common
Stock, $.01 par value per share, outstanding as of October 7, 1997.

<PAGE>
                                     PART I
                              FINANCIAL INFORMATION

Item 1.  Financial Statements


                             FIRST TEAM SPORTS, INC.
                           CONSOLIDATED BALANCE SHEETS
                      August 31, 1997 and February 28, 1997
<TABLE>
<CAPTION>

                                                              August 31,            February 28,
       ASSETS                                                   1997                   1997
                                                         -------------------    --------------------
                                                            (Unaudited)
<S>                                                          <C>                     <C> 

CURRENT ASSETS
  Cash and cash equivalents                                    $686,098                $381,427
  Receivables:
    Trade, less allowance for
      doubtful accounts of $319,000 at
      August 31, 1997 and $565,000 at
      February 28, 1997                                      14,333,445              17,039,679
      Refundable income taxes                                   113,675                 258,492
  Inventory                                                  21,257,549              20,881,845
  Prepaid expenses                                              588,743                 612,880
  Deferred income taxes                                         997,000                 997,000
                                                         -------------------    --------------------

    Total current assets                                    $37,976,510             $40,171,323
                                                         -------------------    --------------------

PROPERTY AND EQUIPMENT, at cost
  Land                                                         $600,000                $600,000
  Building                                                    4,988,680               4,988,680
  Production equipment                                        5,265,453               4,715,979
  Office furniture and equipment                              1,845,310               1,754,017
  Warehouse equipment                                           330,042                 325,361
  Vehicles                                                       86,606                  19,567
                                                         -------------------    --------------------
                                                            $13,116,091             $12,403,604
  Less accumulated depreciation                               3,486,304               2,588,404
                                                         -------------------    --------------------

                                                             $9,629,787              $9,815,200
                                                         -------------------    --------------------
OTHER ASSETS
  License agreements, less accumulated
    amortization of $3,183,000 at August
    31, 1997 and $3,039,000 at February
    28, 1997                                                 $1,921,842              $2,065,611
  Other                                                         269,947                 291,367
                                                         -------------------    --------------------

                                                             $2,191,789              $2,356,978
                                                         -------------------    --------------------

                                                            $49,798,086             $52,343,501
                                                         ===================    ====================

See Notes to Consolidated Financial Statements
</TABLE>
<PAGE>
                             FIRST TEAM SPORTS, INC.
                     CONSOLIDATED BALANCE SHEETS (CONTINUED)
                      August 31, 1997 and February 28, 1997
<TABLE>
<CAPTION>


                                                                 August 31,            February 28,
     LIABILITIES AND SHAREHOLDERS' EQUITY                           1997                   1997
                                                            -------------------    --------------------
                                                                (Unaudited)
<S>                                                             <C>                    <C>  
CURRENT LIABILITIES
  Notes payable to bank                                         $4,294,250              $5,319,250
  Current maturities of
    long-term debt                                                 937,615                 662,414
  Accounts payable, trade                                        1,783,664               4,852,459
  Accrued expenses                                               1,318,057               1,415,511
  Income taxes                                                          -                      -
                                                            -------------------    --------------------

    Total current liabilities                                   $8,333,586             $12,249,634
                                                            -------------------    --------------------

LONG-TERM DEBT,
    less current maturities                                     $6,504,266              $6,217,936
                                                            -------------------    --------------------

DEFERRED INCOME TAXES                                             $530,000                $530,000
                                                            -------------------    --------------------

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

SHAREHOLDERS' EQUITY
  Series A Preferred, par value $.01 per
    share; authorized 680,000 shares; issued
    and outstanding none at August 31, 1997
    and February 28, 1997                                              -                       -

  Common Stock, par value $.01 per share;  
    authorized  10,000,000 shares; issued
    and outstanding 5,760,008 shares at August 31, 1997,
    5,749,796 shares at February 28, 1997                         $57,600                 $57,498
  Additional paid-in capital                                    9,642,921               9,586,340
  Retained earnings                                            24,129,713              23,102,093
                                                            -------------------    --------------------

                                                              $33,830,234             $32,745,931
                                                            -------------------    --------------------

                                                              $49,798,086             $52,343,501
                                                            ===================    ====================
</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,
                                                    1997                  1996                   1997                  1996
                                          -------------------   -------------------    --------------------  --------------------
<S>                                              <C>                   <C>                     <C>                   <C>  


Net sales                                        $10,101,611           $15,634,944             $36,108,873           $46,221,743
Cost of goods sold                                 7,944,438            11,474,675              26,994,488            32,978,677
                                          -------------------   -------------------    --------------------  --------------------

    Gross profit                                  $2,157,173            $4,160,269              $9,114,385           $13,243,066
                                          -------------------   -------------------    --------------------  --------------------

Operating expenses:
  Selling                                         $1,214,086            $1,954,914              $3,255,917            $4,345,468
  General and
    administrative                                 1,954,404             1,484,564               3,761,558             3,421,357
                                          -------------------   -------------------    --------------------  --------------------

                                                  $3,168,490            $3,439,478              $7,017,475            $7,766,825
                                          -------------------   -------------------    --------------------  --------------------

    Operating income                             ($1,011,317)             $720,791              $2,096,910            $5,476,241

Other income
  (expense):
  Interest expense                                  (272,748)             (399,812)               (523,290)             (723,071)
  Other                                                    0                     0                       0                     0
                                          -------------------   -------------------    --------------------  --------------------

    Income before income
      taxes                                      ($1,284,065)             $320,979              $1,573,620            $4,753,170

Income taxes                                        (450,000)              110,000                 546,000             1,687,000
                                          -------------------   -------------------    --------------------  --------------------

    Net income (loss) for the
      period                                       ($834,065)             $210,979              $1,027,620            $3,066,170
                                          ===================   ===================    ====================  ====================



Net income (loss) per
  common share:                                       ($0.14)                $0.04                   $0.18                 $0.52
                                          ===================   ===================    ====================  ====================

Weighted average
  number of common
  shares outstanding
  including Common
  Share equivalents                                5,760,008             5,983,901               5,819,933             5,931,080
                                          ===================   ===================    ====================  ====================
</TABLE>


See Notes to Consolidated Financial Statements

<PAGE>
                             FIRST TEAM SPORTS, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                  For Six Months Ended August 31, 1997 and 1996
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                                    August 31,             August 31,
                                                                                       1997                   1996
                                                                                -------------------    --------------------
<S>                                                                                    <C>                     <C>    

CASH FLOWS FROM OPERATING ACTIVITIES
   Net Income                                                                           $1,027,620              $3,066,170
   Adjustments  required to reconcile  net
     income to net cash  provided by (used
     in) operating activities:
      Depreciation                                                                         897,900                 658,000
      Amortization                                                                         181,269                 316,979
      Deferred income taxes                                                                   -                      -
     Change in assets and liabilities:
       Receivables                                                                       2,706,234              (2,178,988)
       Inventories                                                                        (375,704)             (1,214,009)
       Prepaid expenses                                                                     24,137                 273,116
       Accounts payable                                                                 (3,068,795)             (6,435,880)
       Accrued expenses                                                                    (97,454)             (1,686,235)
       Income taxes                                                                        144,817                 154,156
                                                                                -------------------    --------------------

       Net cash provided by
         (used in) operating activities                                                 $1,440,024             ($7,046,691)
                                                                                -------------------    --------------------

CASH FLOWS FROM INVESTING ACTIVITIES
   Purchase of property and equipment                                                    ($712,487)            ($1,035,719)
   Other                                                                                   (16,080)                (27,799)
                                                                                -------------------    --------------------

       Net cash used in investing activities                                             ($728,567)            ($1,063,518)
                                                                                -------------------    --------------------

CASH FLOWS FROM FINANCING ACTIVITIES
   Net proceeds (payments) on short-term borrowings                                    ($1,025,000)             $7,086,250
   Proceeds on long-term borrowings                                                      1,000,000
   Principal payments on long-term
     borrowings                                                                           (438,469)               (621,162)
   Net proceeds from
     issuances of common stock 1997;
     10,169 shares, 1996; 17,750 shares                                                     56,683                  94,657
                                                                                -------------------    --------------------

       Net cash provided by (used in) financing activities                               ($406,786)             $6,559,745
                                                                                -------------------    --------------------

       Increase (decrease) in cash and
         cash equvalents                                                                  $304,671             ($1,550,464)

Cash and cash equivalents:
   Beginning                                                                              $381,427              $2,166,863
                                                                                -------------------    --------------------

   Ending                                                                                 $686,098                $616,399
                                                                                ===================    ====================

</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, 1997,  and the
consolidated  statements of operations for the three-month and six-month periods
ended  August 31, 1997 and August 31, 1996 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, 1997 and
August 31,  1996 and for all periods  presented  have been made.  The  operating
results for the period ended August 31, 1997 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.

PER SHARE DATA

     In February 1997, the Financial Accounting Standards Board issued Statement
No. 128, Earnings per Share,  which is required to be adopted at our fiscal year
end. At that time we will calculate "basic" and "diluted" earnings per share and
restate prior periods.  The changes from primary and fully diluted  earnings per
share are expected to be negligible.



<PAGE>

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

RESULTS OF OPERATIONS

     Net Sales.  Net sales were  $10.1  million in the second  quarter of fiscal
1998,  a decrease of 35% over the  comparable  quarter of fiscal 1997 when sales
were $15.6 million. Net sales for the first six-months of fiscal 1998 were $36.1
million,  compared to $46.2  million for the first  six-months of fiscal 1997, a
decrease of 22%. In-line skate sales volume decreases,  combined with a decrease
in the average  selling  price of the  Company's  Skate  Attack  line,  were the
principal  factors in the Company's net sales decline in the second  quarter and
six-month  period  of fiscal  1998.  The  Company's  Skate  Attack  line is sold
primarily  through the mass merchant  retail channel and carries a lower average
selling price, which continued to be pressured downward in the second quarter of
fiscal 1998.

     The  Company's  product  groups  consist of  in-line  skates,  ice  skates,
accessories and parts  (primarily  protective  wear and  replacement  wheels and
bearings) and roller hockey  products.  Within the product  groups,  the Company
maintains an UltraWheels and Skate Attack line of products. The UltraWheels line
consists of higher quality and higher priced  products that are targeted for the
specialty and sporting  goods chain store  customers,  and the Skate Attack line
consists of lower priced products for mass merchant customers.

     In-line  skates  and parts and  accessories  sales  decreased  31% and 40%,
respectively,  from the second  quarter of fiscal 1997 to fiscal 1998.  Sales of
in-line  skates  accounted  for  approximately  82% of total sales in the second
quarter of fiscal  1998  compared to 80% in the second  quarter of fiscal  1997.
Sales of parts and accessories accounted for approximately 18% of total sales in
the second quarter of fiscal 1998 compared to 20% in the second of fiscal 1997.

     The Company currently distributes products to more than sixty-two countries
worldwide.  Domestic  sales were $7 million or 69% of total  sales in the second
quarter of fiscal 1998 compared to $9.8 million or 63% in the second  quarter of
fiscal  1997.  Sales in Canada  were $1.2  million or 12% of total  sales in the
second  quarter of fiscal 1998 compared to $200,000 or 1% in the second  quarter
of fiscal  1997.  Sales in Europe  were $1 million or 10% of total  sales in the
second  quarter of fiscal  1998  compared  to $3.6  million or 23% in the second
quarter of fiscal 1997. Other  international  sales were $900,000 or 9% of total
sales in the second  quarter of fiscal 1998 compared to $2 million or 13% in the
second quarter of fiscal 1997.

     Several  factors  contributed  to the Company's  sales  performance  in the
second  quarter of fiscal 1998. The decrease in domestic sales was a result of a
retail  slowdown of in-line skate sales in the later part of the second quarter,
combined  with a second  consecutive  fall  season  of excess  inventory  in the
marketplace.  The  increase  in  Canadian  sales was due to a  continued  strong
acceptance of the  Company's  made in USA intec system  skates.  The decrease in
European  sales was  primarily  a result of adverse  spring  and summer  weather
conditions  throughout  key  European  retail  areas  resulting in a slowdown of
retail sales. The decrease in other international sales was primarily the result
of excess inventory levels in the South American and Pacific Rim markets.
<PAGE>

     Gross Margin.  As a percentage of net sales,  the gross margin was 21.4% in
the second  quarter of fiscal 1998  compared  to 26.6% in the second  quarter of
fiscal 1997.  The decrease in the gross margin was primarily due to  competitive
close-out sales,  continued excess  inventories in the marketplace and continued
pricing pressures, especially at the mass merchant level.

     The  Company's  UltraWheels  brand of in-line  skates  accounted for 57% of
total  skate sales in the second  quarter of fiscal 1998  compared to 60% in the
second  quarter of fiscal 1997,  while the Company's  Skate Attack brand account
for 43% of total  skate sales in the second  quarter of fiscal 1998  compared to
40% in the second quarter of fiscal 1997.

     Operating Expenses.  Selling expenses were $1.2 million or 12% of total net
sales in the second  quarter of fiscal  1998  compared to $2 million or 12.5% in
the  second  quarter of fiscal  1997.  The  decrease  in  selling  expenses  was
primarily  the  result  of a  reduction  in  commissions,  royalties  and  co-op
advertising costs associated with the decreased sales volume.

     General  and  administrative  expenses  were $2 million or 19% of total net
sales in the second  quarter of fiscal 1998  compared to $1.5  million or 10% in
the second  quarter of fiscal 1997.  The increase in general and  administrative
expenses  was  primarily  due to an  increase in  expenses  associated  with the
Company's  computer  systems,  expansion of the  Company's  European  office and
certain  occupancy  costs,  specifically  real estate taxes  associated with the
Company's facility.

     Other  Income and  Expense.  Interest  expense  was  $273,000 in the second
quarter of fiscal 1998  compared  to  $400,000  in the second  quarter of fiscal
1997.  The  decrease of  approximately  $127,000 or 32% was  primarily  due to a
reduction  of the  interest  expense  related  to the  Company's  line of credit
facility.  Due to  management's  control over  expenditures  and cash management
procedures,  the average  outstanding  balance on the  Company's  line of credit
facility during the second quarter of fiscal 1998 was substantially reduced from
the second quarter of fiscal 1997.

     Net Income/(Loss).  The Company had a net loss of ($834,000) or ($ .14) per
share in the second quarter of fiscal 1998 compared to net income of $211,000 or
$ .04 per share in fiscal 1997.  The decrease can be  attributed to the decrease
in both the sales volume and the gross margins as discussed above.
<PAGE>

LIQUIDITY AND CAPITAL RESOURCES

     As of August  31,  1997,  total  cash and cash  equivalents  were  $686,098
compared  to $381,427 as of February  28,  1997.  The  increase in cash and cash
equivalents was a result of $1,440,024 of cash provided by operating  activities
being  offset by $728,567 of cash used in investing  activities  and $406,786 of
cash used in financing activities.

     The net cash  provided  by  operating  activities  was  primarily  from net
income,  depreciation and  amortization,  and a decrease in accounts  receivable
being  offset by a decrease  in  accounts  payable.  The  decrease  in  accounts
receivable  is the  result of  continued  collections  and a  decrease  in sales
activities.  The  decrease  in accounts  payable is a result of a  reduction  in
inventory purchases related to the reduced sales volume.

     The net  cash  used in  investing  activities  was  primarily  for  capital
expenditures relating to new product production tooling.

     The net cash used in financing activities was primarily for payments on the
Company's line of credit and long-term debt being offset by proceeds received on
a new term note.  The new note was for the financing of new  production  tooling
costs.

     The  Company's  debt-to-worth  ratio  was  .5 to 1 as of  August  31,  1997
compared to .6 to 1 as of February 28, 1997. The Company's long-term debt, which
consists  primarily of a mortgage note on the Company's facility and obligations
under endorsement license agreements, less current maturities, was $6,504,266 as
of August 31, 1997. As of August 31, 1997,  the Company had a revolving  line of
credit with a bank that provides for  borrowings of up to  $15,000,000  of which
$4,294,250  was  outstanding.  In  addition,  the  Company  had 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,  1997 there was a
$916,666 balance outstanding on this credit facility.

     The Company  believes  its current cash  position,  funds  available  under
existing bank arrangements and cash generated from profitable operations will be
sufficient to finance the Company's operating requirements through fiscal 1998.


<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 17, 1997.

     (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 six (6) by a vote of
          4,984,710  shares in favor,  82,879  shares  against and 34,796 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:

                                     Number of                  Number of
          Nominee                    Votes For                 Votes Withheld
          -------                    ---------                 --------------

          John J. Egart               4,780,472                  321,913
          David G. Soderquist         4,778,886                  323,499
          Joe Mendelsohn              4,779,591                  322,794
          Timothy G. Rath             4,787,921                  314,464
          Stanley E. Hubbard          4,784,948                  317,437
          William J. McMahon          4,778,565                  323,820

          The shareholders approved an increase in the number of shares reserved
          under the Company's 1994 stock option and incentive  compensation from
          525,000  to 925,000 by a vote of  1,673,068  shares in favor,  727,042
          shares  against and 52,879  shares  abstaining,  which votes  excluded
          2,649,396 shares ("broker non-votes").

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 7, 1997


<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, 1997
                                                                  
-------------------------------------------------------------------------------
                             FIRST TEAM SPORTS, INC.
-------------------------------------------------------------------------------

Exhibit Number       Description
--------------       -----------

 3.1                 Restated Articles of Incorporation -- incorporated by 
                     reference to Exhibit 3.1 to the Company's Form 10-K for 
                     the year ended February 28, 1997

 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 Registrant'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

10.1*                1994 Stock Option and Incentive Compensation Plan, as 
                     amended through June 17, 1997**

10.2*                Employment Agreement dated August 18, 1997 between the
                     Company and Kent Brunner**

27*                  Financial Data Schedule (included in electronic version 
                     only)
_____________________________
*Filed herewith.
**Management contract or compensatory plan or arrangement.