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.:
  May 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:  5,760,008  shares of Common
Stock, $.01 par value per share, outstanding as of July 10, 1997.
<PAGE>


                                     PART I
                              FINANCIAL INFORMATION


Item 1.  Financial Statements

<PAGE>
                             FIRST TEAM SPORTS, INC.
                           CONSOLIDATED BALANCE SHEETS
                       May 31, 1997 and February 28, 1997
<TABLE>
<CAPTION>
                                                    May 31,              February 28,
                    ASSETS                            1997                   1997
                                               -------------------    --------------------
                                                   (Unaudited)
<S>                                               <C>                     <C>
CURRENT ASSETS
  Cash and cash equivalents                          $396,540                $381,427
  Receivables:
    Trade, less allowance for
      doubtful accounts of $439,000 at
      May 31, 1997 and $565,000 at
      February 28, 1997                            24,898,481              17,039,679
      Refundable income taxes                         -                       258,492
  Inventory                                        19,545,676              20,881,845
  Prepaid expenses                                    659,330                 612,880
  Deferred income taxes                               997,000                 997,000
                                               -------------------    --------------------
    Total current assets                          $46,497,027             $40,171,323
                                               -------------------    --------------------

PROPERTY AND EQUIPMENT, at cost
  Land                                               $600,000                $600,000
  Building                                          4,988,680               4,988,680
  Production equipment                              5,091,883               4,715,979
  Office furniture and equipment                    1,788,244               1,754,017
  Warehouse equipment                                 329,344                 325,361
  Vehicles                                             19,567                  19,567
                                               -------------------    --------------------
                                                  $12,817,718             $12,403,604
  Less accumulated depreciation                     3,037,354               2,588,404
                                               -------------------    --------------------
                                                   $9,780,364              $9,815,200
                                               -------------------    --------------------

OTHER ASSETS
  License  agreements,  less  accumulated
    amortization of $3,108,000 at May 31,
    1997 and $3,039,000 at February 28,
    1997                                           $1,997,061              $2,065,611
  Other                                               281,383                 291,367
                                               -------------------    --------------------
                                                   $2,278,444              $2,356,978
                                               -------------------    --------------------
                                                  $58,555,835             $52,343,501           
                                               ===================    ====================
</TABLE>

                 See Notes to Consolidated Financial Statements
<PAGE>

                             FIRST TEAM SPORTS, INC.
                     CONSOLIDATED BALANCE SHEETS (CONTINUED)
                       May 31, 1997 and February 28, 1997
<TABLE>
<CAPTION>

                                                                 May 31,              February 28,
            LIABILITIES AND SHAREHOLDERS' EQUITY                   1997                   1997
                                                            -------------------    --------------------
                                                                 (Unaudited)
<S>                                                                 <C>                     <C> 
CURRENT LIABILITIES
  Notes payable to bank                                             $7,159,250              $5,319,250
  Current maturities of
    long-term debt                                                     923,962                 662,414
  Accounts payable, trade                                            5,870,864               4,852,459
  Accrued expenses                                                   1,295,918               1,415,511
  Income taxes                                                         760,902                   -
                                                            -------------------    --------------------

    Total current liabilities                                      $16,010,896             $12,249,634
                                                            -------------------    --------------------

LONG-TERM DEBT,
    less current maturities                                         $6,750,639              $6,217,936
                                                            -------------------    --------------------

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

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

SHAREHOLDERS' EQUITY                            
  Common Stock, par value $.01 per 
    share;  authorized  10,000,000 shares; 
    issued and outstanding 5,760,008 
    shares at May 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                                                 24,963,779              23,102,093
                                                            -------------------    --------------------
                                                                   $34,664,300             $32,745,931
                                                            -------------------    --------------------
                                                                   $58,555,835             $52,343,501
                                                            ===================    ====================
</TABLE>

                 See Notes to Consolidated Financial Statements

<PAGE>

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


                                                Three months ended
                                                      May 31,
                                             1997                  1996
                                       ------------------   -------------------
Net sales                                    $26,007,262           $30,586,799

Cost of goods sold                            19,050,049            21,504,002
                                       ------------------   -------------------

    Gross profit                              $6,957,213            $9,082,797
                                       ------------------   -------------------
Operating expenses:
  Selling                                     $2,041,830            $2,390,553
  General and
    administrative                             1,807,155             1,936,794
                                       ------------------   -------------------

                                              $3,848,985            $4,327,347
                                       ------------------   -------------------

    Operating income                          $3,108,228            $4,755,450

Other income
  (expense):
  Interest expense                              (250,542)             (323,260)
  Other                                            -                     -
                                       ------------------   -------------------

    Income before income
      taxes                                   $2,857,686            $4,432,190

Income taxes                                     996,000             1,577,000
                                       ------------------   -------------------
    Net income for the
      period                                  $1,861,686            $2,855,190
                                       ==================   ===================

Net income per
  common share:                                    $0.32                 $0.48
                                       ==================   ===================
Weighted average
  number of common
  shares outstanding
  including Common
  Share equivalents                            5,787,328             5,989,214
                                       ==================   ===================

                        See Notes to Financial Statements
<PAGE>

                             FIRST TEAM SPORTS, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                  For Three Months Ended May 31, 1997 and 1996
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                          May 31,                May 31,
                                                                            1997                   1996
                                                                     -------------------    -------------------
<S>                                                                          <C>                    <C> 
CASH FLOWS FROM OPERATING ACTIVITIES
   Net Income                                                                $1,861,686             $2,855,190
   Adjustments required to reconcile net
     income to net cash provided by (used in)
     operating activities:
       Depreciation                                                             448,950                331,500
       Amortization                                                              87,300                144,990
       Deferred income taxes                                                       -                     -
     Change in assets and liabilities:
       Receivables                                                           (7,600,310)            (9,362,469)
       Inventories                                                            1,336,169               (996,203)
       Prepaid expenses                                                         (46,450)                63,942
       Accounts payable                                                       1,018,405               (878,145)
       Accrued expenses                                                        (119,593)              (441,382)
       Income taxes                                                             760,902              1,469,303
                                                                     -------------------    -------------------
       Net cash provided by
         (used in) operating activities                                     ($2,252,941)           ($6,813,274)
                                                                     -------------------    -------------------
CASH FLOWS FROM INVESTING ACTIVITIES
   Purchase of property and equipment                                         ($414,114)             ($408,602)
   Other                                                                         (8,766)                (4,221)
                                                                     -------------------    -------------------

       Net cash used in investing activities                                  ($422,880)             ($412,823)
                                                                     -------------------    -------------------
CASH FLOWS FROM FINANCING ACTIVITIES
   Net proceeds (payments) on short-term borrowings                          $1,840,000             $6,666,250
   Proceeds on long-term borrowings                                          $1,000,000
   Principal payments on long-term
     borrowings                                                                (205,749)              (222,725)
   Net proceeds from
     issuances of common stock 1997;
     10,169 shares, 1996; 17,750 shares                                          56,683                 91,990
                                                                     -------------------    -------------------

       Net cash provided by (used in) financing activities                   $2,690,934             $6,535,515
                                                                     -------------------    -------------------
       Increase (decrease) in cash and
         cash equvalents                                                        $15,113              ($690,582)

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

   Ending                                                                      $396,540             $1,476,281
                                                                     ===================    ===================
</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 May 31,  1997,  and the
consolidated  statements of operations for the three-month periods ended May 31,
1997 and May 31, 1996 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 May 31,  1997 and May 31, 1996 and for
all periods presented have been made. The operating results for the period ended
May 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 $26 million in the first quarter of fiscal 1998,
a decrease  of 15% over the  comparable  quarter of fiscal  1997 when sales were
$30.6  million.  In-line  skate  sales  volume  decreases  and 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 first quarter 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 continues to be
pressured downward in the first 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  skate,  parts and  accessories  and roller  hockey  product  sales
decreased 13%, 17% and 50%  respectively,  from the first quarter of fiscal 1997
to fiscal 1998. Sales of in-line skates accounted for approximately 87% of total
sales in the first  quarter of fiscal 1998  compared to 86% in the first quarter
of fiscal 1997. Sales of parts and accessories  accounted for  approximately 12%
of total sales in the first  quarter of fiscal 1998 compared to 12% in the first
quarter of fiscal 1997. Roller hockey equipment sales accounted for less than 1%
of total  sales in fiscal  1998  compared  to 2% in the first  quarter of fiscal
1997.

     The  Company  currently  distributes  products  to more  than 62  countries
worldwide.  Domestic sales were $16.9 million or 65% of total sales in the first
quarter of fiscal 1998  compared to $19.5 million or 64% in the first quarter of
fiscal  1997.  Sales in Canada  were $4.3  million or 17% of total  sales in the
first  quarter  of fiscal  1998  compared  to $3.5  million  or 11% in the first
quarter of fiscal 1997.  Sales in Europe were $4.2 million or 16% of total sales
in the first  quarter of fiscal 1998  compared to $5 million or 16% in the first
quarter of fiscal  1997.  Other  international  sales were $ .6 million or 2% of
total sales in the first  quarter of fiscal 1998 compared to $2.6 million or 9 %
in the first quarter of fiscal 1997.

     Several factors contributed to the Company's sales performance in the first
quarter  of  fiscal  1998.  The  decrease  in  domestic  sales was a result of a
continuation  of some excess  inventory  in the  marketplace,  coupled with poor
spring  weather  conditions  throughout  some key retail areas.  The increase in
Canadian  sales was due to a strong  acceptance of the Company's  made in U.S.A.
intec system  skates.  The decrease in European  sales was primarily a result of
delayed  shipments  of our new  Softec(R)  products and adverse  spring  weather
conditions   throughout  key  European  retail  areas.  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 26.8% in
the first  quarter  of fiscal  1998  compared  to 29.7% in the first  quarter of
fiscal 1997.  The decrease in the gross margin  percentage  was primarily due to
air freight costs associated with the Company's  Softec(R)  products,  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 66% of
total  skate sales in the first  quarter of fiscal  1998  compared to 53% in the
first quarter of fiscal 1997,  while the Company's  Skate Attack brand accounted
for 34% of total skate sales in the first quarter of fiscal 1998 compared to 44%
in the first quarter of fiscal 1997.  Although the UltraWheels brand consists of
higher priced and higher margin products,  the increased gross margin from these
sales was more than offset by the additional  freight costs  discussed above and
the low margins received on close-out sales.

     Operating  Expenses.  Selling expenses were $2 million or 7.9% of total net
sales in the first  quarter of fiscal 1998  compared to $2.4  million or 7.8% in
the first quarter of fiscal 1997. The decrease in selling expenses was primarily
the result of a reduction in endorsement  royalties and co-op  advertising costs
associated with the decreased sales volume.

General and administrative expenses were $1.8 million or 6.9% of total net sales
in the first  quarter of fiscal  1998  compared  to $1.9  million or 6.3% in the
first  quarter  of fiscal  1997.  The  decrease  in general  and  administrative
expenses was  primarily  due to a reduction in personnel  costs,  a reduction in
insurance costs associated with the decreased sales volume and reduced operating
expenditures  resulting from  management's  continued efforts to closely monitor
and control operating expenses.

     Other  Income and  Expense.  Interest  expense  was  $251,000  in the first
quarter of fiscal 1998 compared to $323,000 in the first quarter of fiscal 1997.
The decrease of approximately $72,000 or 22% was primarily due to a reduction of
interest  expense  related  to the  Company's  line  of  credit  facility.  With
management's controls and procedures over expenditures and cash management,  the
average  outstanding  balance  on the line of credit  facility  during the first
quarter  of fiscal  1998 was  substantially  reduced  over the first  quarter of
fiscal 1997.

     Net Income.  The Company had net income of $1.9  million or $ .32 per share
in the first quarter of fiscal 1998, compared to $2.9 million or $ .48 per share
in fiscal  1997.  This  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 May 31, 1997, total cash and cash equivalents were $396,540  compared
to $381,427 as of February 28, 1997.  The increase in cash and cash  equivalents
was a result of $2,252,941 of cash used in operating  activities and $422,880 of
cash used in investing activities being offset by $2,690,934 of cash provided by
financing activities.

     The net cash used in operating  activities  was primarily from the increase
in  accounts  receivables  which was offset by net income  and the  decrease  in
inventories.  The increase in the accounts  receivable  balance is the result of
the first quarter sales which are approximately  twice as much as fourth quarter
sales. The decrease in inventory levels is the result of management's efforts to
reduce and control inventory purchases.

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

     The net cash  provided  by  financing  activities  was  primarily  proceeds
received on the Company's line of credit and new term note. The new note was for
the financing of new production tooling costs.

     The Company's  debt-to-worth  ratio was .7 to 1 as of May 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 $6,750,639 as of
May 31,  1997.  As of May 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
$7,159,250  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  May  31,  1997  there  was a
$1,000,000 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 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: July 10, 1997

<PAGE>
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                           EXHIBIT INDEX TO FORM 10-Q

For Quarter Ended:                                Commission File No.:  0-16422
May 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
<PAGE>

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

10.1              Restated revolving credit and term loan agreement dated June 
                  30, 1995, as amended through May 28, 1997 between the Company
                  and Marquette Capital Bank as agent for itself and LaSalle
                  National Bank and Firstar Bank Milwaukee, N.A.

10.2              Restated  security  agreement dated June 30, 1995, as
                  amended  through May 28, 1997 between the Company and
                  Marquette  Capital  Bank,  LaSalle  National Bank and
                  Firstar Bank Milwaukee, N.A.

27*               Financial Data Schedule (included in electronic version only)