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.:
  November 30, 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)                       Identifiation 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:  5,747,425  shares of Common
Stock, $.01 par value per share, outstanding as of January 6, 1997.



<PAGE>



                                     PART I
                              FINANCIAL INFORMATION


Item 1.           Financial Statements



                             FIRST TEAM SPORTS, INC.
                           CONSOLIDATED BALANCE SHEETS
                     November 30, 1996 and February 29, 1996
<TABLE>
<CAPTION>

                                                        November 30,            February 29,
                    ASSETS                                  1996                    1996
                                                     --------------------    -------------------
                                                         (Unaudited)
<S>                                                     <C>                    <C>  
CURRENT ASSETS
  Cash and cash equivalents                                $835,049             $2,166,863
  Receivables:
    Trade, less allowance for
      doubtful accounts of $726,000 at
      November 30, 1996 and $489,000 at
      February 29, 1996                                  18,733,522             16,228,666
      Refundable income taxes                                 -                    155,146
  Inventory                                              21,285,736             22,813,850
  Prepaid expenses                                          411,459                960,079
  Deferred income taxes                                     827,000                827,000
                                                     --------------------    -------------------

    Total current assets                                $42,092,766            $43,151,604
                                                     --------------------    -------------------

PROPERTY AND EQUIPMENT, at cost
  Land                                                     $600,000               $600,000
  Building                                                5,024,767              4,825,740
  Production equipment                                    4,774,323              4,069,078
  Office furniture and equipment                          1,824,164              1,509,120
  Warehouse equipment                                       331,850                315,509
  Vehicles                                                   55,741                 46,925
                                                     --------------------    -------------------
                                                        $12,610,845            $11,366,372
  Less accumulated depreciation                           2,566,189              1,511,689
                                                     --------------------    -------------------

                                                        $10,044,656             $9,854,683
                                                     --------------------    -------------------

OTHER ASSETS
  License agreements, less accumulated
    amortization of $2,894,000 at November
    30, 1996 and $2,459,000 at February
    29, 1996                                             $2,210,420             $2,645,268
  Other                                                     300,641                306,247
                                                     --------------------    -------------------

                                                         $2,511,061             $2,951,515
                                                     --------------------    -------------------

                                                        $54,648,483            $55,957,802
                                                     ====================    ===================
</TABLE>


                 See Notes to Consolidated Financial Statements



<PAGE>


                             FIRST TEAM SPORTS, INC.
                     CONSOLIDATED BALANCE SHEETS (CONTINUED)
                     November 30, 1996 and February 29, 1996
<TABLE>
<CAPTION>

                                                               November 30,            February 29,
            LIABILITIES AND SHAREHOLDERS' EQUITY                   1996                    1996
                                                            --------------------    -------------------
                                                                (Unaudited)
<S>                                                            <C>                    <C> 
CURRENT LIABILITIES
  Notes payable to bank                                         $8,759,250             $5,268,000
  Current maturities of
    long-term debt                                                 902,912                943,060
  Accounts payable, trade                                        2,523,070              9,462,883
  Accrued expenses                                               1,747,160              2,532,676
  Income taxes                                                     237,550                   -
                                                            --------------------    -------------------

    Total current liabilities                                  $14,169,942            $18,206,619
                                                            --------------------    -------------------




LONG-TERM DEBT,
    less current maturities                                     $6,181,071             $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
    5,747,425 shares at November 30, 1996,
    5,721,000 shares at February 29, 1996                          $57,474                $57,210
  Additional paid-in capital                                     9,573,032              9,396,802
  Retained earnings                                             23,626,964             20,376,811
                                                            --------------------    -------------------

                                                               $33,257,470            $29,830,823
                                                            --------------------    -------------------

                                                               $54,648,483            $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                           Nine months ended
                                          November  30,                              November  30,
                                     1996                 1995                  1996                 1995
                               ------------------   ------------------    ------------------   ------------------
<S>                               <C>                  <C>                   <C>                  <C>  


Net sales                         $16,656,582          $22,616,765           $62,878,324          $76,623,033

Cost of goods sold                 12,930,350           16,097,675            45,909,026           53,333,890
                               ------------------   ------------------    ------------------   ------------------

    Gross profit                   $3,726,232           $6,519,090           $16,969,298          $23,289,143
                               ------------------   ------------------    ------------------   ------------------

Operating expenses:
  Selling                          $1,519,682           $1,714,894            $5,865,148           $6,491,990
  General and
    administrative                  1,587,956            2,030,292             5,009,314            5,954,613
                               ------------------   ------------------    ------------------   ------------------

                                   $3,107,638           $3,745,186           $10,874,462          $12,446,603
                               ------------------   ------------------    ------------------   ------------------

    Operating income                 $618,594           $2,773,904            $6,094,836          $10,842,540

Other income
  (expense):
  Interest income                        -                   3,079                  -                   3,079
  Interest expense                   (334,757)            (296,666)           (1,060,938)            (755,995)
  Other                                  -                    -                    3,254                  -
                               ------------------   ------------------    ------------------   ------------------

    Income before income
      taxes                          $283,837           $2,480,317            $5,037,152          $10,089,624

Income taxes                          100,000              893,000             1,787,000            3,668,000
                               ------------------   ------------------    ------------------   ------------------

    Net income for the
      period                         $183,837           $1,587,317            $3,250,152           $6,421,624
                               ==================   ==================    ==================   ==================


Net income per
  common share:
    Primary                             $0.03                $0.27                 $0.55                $1.06
    Fully diluted                       $0.03                $0.27                 $0.56                $1.08
                               ==================   ==================    ==================   ==================

Weighted average
  number of common
  shares outstanding
  including Common
  Share equivalents
    Primary                         5,832,643            5,950,429             5,903,226            6,062,450
    Fully diluted                   5,850,052            5,966,354             5,846,026            5,959,917
                               ==================   ==================    ==================   ==================
</TABLE>


                 See Notes to Consolidated Financial Statements


<PAGE>




                             FIRST TEAM SPORTS, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                For Nine Months Ended November 30, 1996 and 1995
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                         November 30,          November 30,
                                                                           1996                    1995
                                                                    --------------------    -------------------
<S>                                                                    <C>                    <C>   

CASH FLOWS FROM OPERATING ACTIVITIES
   Net Income                                                           $3,250,152             $6,421,624
   Adjustments required to reconcile net
     income to net cash provided by (used in)
     operating activities:
      Depreciation                                                       1,054,500                528,000
      Amortization                                                         475,348                525,948
      Deferred income taxes                                                    -                 (150,000)
     Change in assets and liabilities:
       Receivables                                                      (2,349,710)            (6,251,117)
       Inventories                                                       1,528,114               (306,697)
       Prepaid expenses                                                    548,620                204,539
       Accounts payable                                                 (6,939,813)            (1,324,766)
       Accrued expenses                                                   (785,516)              (213,832)
       Income taxes                                                        237,550                393,997
                                                                    --------------------    -------------------

       Net cash provided by
         (used in) operating activities                                ($2,980,755)             ($172,304)
                                                                    --------------------    -------------------


CASH FLOWS FROM INVESTING ACTIVITIES
   Purchase of property and equipment                                  ($1,244,473)           ($3,486,805)
   Other                                                                   (34,893)               (98,345)
                                                                    --------------------    -------------------

       Net cash used in investing activities                           ($1,279,366)           ($3,585,150)
                                                                    --------------------    -------------------

CASH FLOWS FROM FINANCING ACTIVITIES
   Net proceeds (payments) on short-term borrowings                     $3,491,250             $5,095,000
   Principal payments on long-term
     borrowings                                                           (739,437)              (724,356)
   Net proceeds from
     issuances of common stock 1996;
     17,750 shares, 1995; 92,859 shares                                    176,494                501,887
                                                                    --------------------    -------------------

       Net cash provided by (used in) financing activities              $2,928,307             $4,872,531
                                                                    --------------------    -------------------

       Increase (decrease) in cash and
         cash equvalents                                               ($1,331,814)            $1,115,077

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

   Ending                                                                 $835,049             $1,716,471
                                                                    ====================    ===================
</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 November 30, 1996, and the
consolidated statements of operations for the three-month and nine-month periods
ended November 30, 1996 and November 30, 1995 and the consolidated statements of
cash flows for the  nine-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 November 30, 1996
and  November  30,  1995 and for all  periods  presented  have  been  made.  The
operating  results for the period ended  November  30, 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  $16.7  million in the third  quarter of fiscal
1997,  a decrease of 26% over the  comparable  quarter of fiscal 1996 when sales
were $22.6  million.  Net sales for the first  nine-months  of fiscal  1997 were
$62.9  million,  compared to $76.6 million for the first  nine-months  of fiscal
1996,  a  decrease  of  18%.  In-line  roller  skates,  ice  skates,  parts  and
accessories  and roller hockey  product sales  decreased 21%, 100%, 14% and 90%,
respectively,  from the third  quarter of fiscal 1996 to fiscal  1997.  Sales of
in-line  roller  skates  accounted for  approximately  88% of total sales in the
third  quarter of fiscal  1997  compared  to 82% in the third  quarter of fiscal
1996. Sales of parts and accessories  accounted for  approximately  12% of total
sales in the third  quarter of fiscal 1997  compared to 10% in the third quarter
of fiscal 1996.  Roller hockey equipment sales accounted for approximately 1% of
total  sales in the third  quarter of fiscal  1997  compared  to 3% in the third
quarter of fiscal 1996. Ice skate sales were  insignificant in the third quarter
of fiscal  1997  compared  to 5% of total  sales in the third  quarter of fiscal
1996. Sales to the Company's ten largest  customers  accounted for approximately
73% of the Company's total sales in the third quarter of fiscal 1997 compared to
77% of the Company's total sales in the third quarter of fiscal 1996.

     The  European  market  for the  Company's  products  continues  to grow and
expand.  As a result,  the Company's sales in Europe increased from $1.0 million
in the third  quarter of fiscal  1996 to $1.9  million  in the third  quarter of
fiscal 1997, an increase of approximately  90%. Domestic sales were 81% of total
net  sales in the third  quarter  of fiscal  1997  compared  to 84% in the third
quarter of fiscal  1996,  while  export  sales were 19% in the third  quarter of
fiscal 1997  compared to 16% in the third  quarter of fiscal 1996.  Export sales
consisted  of sales in Canada and outside  North  America of 1% and 18% of total
net sales in the third quarter of fiscal 1997, respectively,  compared to 1% and
15% in the third quarter of fiscal 1996, respectively.

Several  factors  contributed  to the Company's  sales  performance in the third
quarter of fiscal 1997. The decrease in domestic and Canadian sales was a result
of continued  overall  retail  slowdown in sporting  good  purchases,  continued
excess  inventory  in  the  market  place  and  continued  strong   competition,
especially  with the Company's  mass merchant  accounts.  Sales to the Company's
mass merchant accounts decreased  approximately 44% from third quarter of fiscal
1996 to  fiscal  1997,  while  sales to  non-mass  merchant  accounts  increased
approximately 12% from the third quarter of fiscal 1996 to fiscal 1997. With the
soft retail environment in the United States and Canada and the continued excess
inventory levels in the market place,  the level of customer  reorders was below
the Company's expectations.  The increase in sales to Europe was a result of the
Company's  ability to  capitalize on continued  industry  growth in the European
market.

<PAGE>


     Gross Margin.  The Company's  gross margin  decreased $2.9 million (or 44%)
between the third  quarter of fiscal 1997 and the third  quarter of fiscal 1996.
Gross  margin as a  percentage  of sales was 22% in the third  quarter of fiscal
1997 compared to 29% in the third  quarter for fiscal 1996.  The decrease in the
gross margin  percentage  is primarily  due to the overall  retail  slowdown and
continued  excess  retail  inventories.  The  Company  has  had an  increase  in
competition and product pricing pressure at all levels,  from the mass merchants
to the  specialty  shops.  These  factors  resulted in an increase in close- out
product sales at even lower than normal  close-out gross margins and an increase
in discounts and price markdowns.

     Operating Expenses. The Company's operating expenses (consisting of Selling
expenses and General and Administrative expenses) were $3,107,638 (or 19% of net
sales) in the third quarter of fiscal 1997,  compared to  $3,888,286  (or 17% of
net sales) in the third quarter of fiscal 1996.

Selling  expenses  decreased  $195,212  (or 11%)  between the third  quarter of
fiscal 1997 and 1996, and were approximately 9% and 8% of net sales in the third
quarter of fiscal 1997 and 1996,  respectively.  The overall decrease in selling
expenses  was a result  of a  reduction  in sales  commissions  and  endorsement
royalties  associated  with  the  decreased  sales  volume  and an  increase  in
advertising and promotional expenses.

General and  Administrative  expenses  decreased  $585,436  (or 27%) between the
third quarter of fiscal 1997 and 1996, and were  approximately 10% and 9% of net
sales in the third quarter of fiscal 1997 and 1996,  respectively.  The decrease
in general and  administrative  expenses  was  primarily  due to a reduction  in
personnel costs,  savings associated with the Company's new office and warehouse
facility and reduced operating  expenditures resulting from management's control
over spending and expenses.

The overall decrease in operating expenses is a result of management's continued
efforts to closely monitor and control expenses and the ability of management to
respond on a timely basis to the Company's reduced sales activity.

     Other Income and Expense.  Interest  expense in the third quarter of fiscal
1997 was $334,757 (or 2% of net sales) compared to $296,666 (or 1% of net sales)
in the third quarter of fiscal 1996. The increase in interest  expense is due to
the addition of the mortgage note  associated  with the Company's new office and
warehouse facility.

     Net Income.  The Company had net income of $183,837 or ($ .03 per share) in
the third quarter of fiscal 1997, compared to $1,587,317 (or $ .27 per share) in
the third quarter of fiscal 1996.  This  represents a decrease of $1,403,480 (or
88%) in total  earnings  and a decrease of $ .23 (or 85%) in earnings per share.
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


     The Company's  cash and cash  equivalents  were $835,049 as of November 30,
1996,  compared to $2,166,863 as of February 29, 1996.  The decrease in cash and
cash equivalents is a result of $2,980,755 of cash used in operating  activities
and $1,279,366 of cash used in investing  activities  being partially  offset by
$2,928,307  of cash  provided  by  financing  activities.  The net cash  used in
operating  activities was primarily  from a decrease in accounts  payable and an
increase  in  accounts  receivable  being  partially  offset  by a  decrease  in
inventories  and net  income.  The net cash  used in  investing  activities  was
primarily for the purchase of capital assets. The net cash provided by financing
activities was primarily from proceeds received on the Company's line of credit.

     The Company had net working capital of $27,922,824 as of November 30, 1996,
compared to $24,944,985 as of February 29, 1996. The Company's  current ratio at
November 30, 1996 was 3.0 to 1 compared to 2.4 to 1 at February  29,  1996.  The
improvement in the Company's net working capital and current ratio was primarily
attributable  to an increase in the Company's  receivables and a decrease in the
Company's trade accounts payable.

     The  Company's  debt-to-worth  ratio was .6 to 1 as of November  30,  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 $6,181,071 as of November 30, 1996. As of November 30, 1996, the
Company had a revolving line of credit established with a bank that provides for
borrowings  of up to  $15,000,000,  of  which  $8,759,250  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 November 30, 1996,  there were no  outstanding  balances 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 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:   January 6, 1997












<PAGE>






                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                           EXHIBIT INDEX TO FORM 10-Q

For Quarter Ended:                               Commission File No.:  0-16422
November 30, 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)

 .