|SECURITIES AND
EXCHANGE COMMISSION Washington, D.C. 20549



Form 10-Q



QUARTERLY REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



For the quarterly
period ended: February 28, 2002



Commission File Number
0-13851



NITCHES, INC.



(Exact name of
registrant as specified in its charter)
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|California
     (State of Incorporation) | 95-2848021
     (I.R.S. EmployerIdentification No.)
|---------------------------------------- | ---------------------------------------------------

|10280 Camino Santa Fe,
San Diego, California 92121
(Address of principal executive offices)


Registrants telephone
number: (858) 625-2633


Securities registered
pursuant to Section 12(b) of the Act:
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Title of each class
     Common Stock, no par value | Name of each
     exchange on which registered
     NASDAQ SmallCap Market
|--------------------------------------------------- | --------------------------------------------------------------------------

|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 [_]


As of February 28, 2002 the
Registrant had 1,064,680 shares of common stock outstanding.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|PART I
 FINANCIAL INFORMATION


Item 1. Financial Statements


NITCHES, INC. AND
SUBSIDIARIES
Condensed Consolidated Balance Sheets


ASSETS
|---------------------------------------------------------------------------------------------------------------------------------------------

|                                                             |             | February 28,2002 |  | August 31,2001 | 
|------------------------------------------------------------ | ----------- | ---------------- |  | -------------- | 
|                                                             |             |                  |  |               
|                                                             | (Unaudited) |                  |  |               
|Current assets:                                              |            
|Cash and cash equivalents                                    |             | $     95,000     |  | $   192,000    | 
|Receivables:                                                 |            
|Trade accounts, less allowances                              |             | 3,318,000        |  | 3,143,000      | 
|Due from affiliates and employees                            |             | 34,000           |  | 36,000         | 
|                                                             |             |                  |  |               
|Total receivables                                            |             | 3,352,000        |  | 3,179,000      | 
|                                                            
|Refundable income taxes                                      |             | 113,000          |  | 75,000         | 
|Inventories                                                  |             | 3,533,000        |  | 5,408,000      | 
|Deferred income taxes                                        |             | 180,000          |  | 180,000        | 
|Other current assets                                         |             | 215,000          |  | 123,000        | 
|                                                             |             |                  |  |               
|Total current assets                                         |             | 7,488,000        |  | 9,157,000      | 
|                                                            
|Furniture, fixtures and equipment, net                       |             | 108,000          |  | 77,000         | 
|Deferred income taxes                                        |             | 38,000           |  | 38,000         | 
|Other assets                                                 |             | 17,000           |  | 17,000         | 
|                                                             |             |                  |  |               
|                                                             |             | $7,651,000       |  | $9,289,000     | 
|                                                             |             |                  |  |               
|                                                            
|LIABILITIES AND SHAREHOLDERS EQUITY                         |            
|Current liabilities:                                         |            
|Accounts payable                                             |             | $1,248,000       |  | $2,430,000     | 
|Accrued expenses                                             |             | 117,000          |  | 254,000        | 
|                                                             |             |                  |  |               
|Total current liabilities                                    |             | 1,365,000        |  | 2,684,000      | 
|Shareholders equity:                                        |            
|Preferred stock, no par value; 25,000,000 shares authorized, |            
|no shares issued or outstanding                              |             |                 |  |               | 
|Common stock, no par value; 50,000,000 shares authorized;    |            
|1,064,680 shares issued and outstanding                      |             | 805,000          |  | 805,000        | 
|Retained earnings                                            |             | 5,481,000        |  | 5,800,000      | 
|                                                             |             |                  |  |               
|Total shareholders equity                                   |             | 6,286,000        |  | 6,605,000      | 
|                                                             |             |                  |  |               
|                                                             |             | $7,651,000       |  | $9,289,000     | 
|                                                             |             |                  |  |               

|The accompanying notes
are an integral part of these financial statements


2
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|NITCHES, INC. AND
SUBSIDIARIESConsolidated Statements
of Income (Unaudited)
|---------------------------------------------------------------------------

|                                             | Three Months EndedFebruary 28, | Six Months EndedFebruary 28,
|-------------------------------------------- | ------------------------------ | ----------------------------
|
|                                             |                                |                             
|Net sales                                    |                                | $ 5,734,000                 
|                                            
|Cost of goods sold                           |                                | 4,385,000                   
|                                             |                                |                             
|Gross profit                                 |                                | 1,349,000                   
|                                            
|Selling, general and administrative expenses |                                | 1,580,000                   
|                                             |                                |                             
|Income from operations                       |                                | (231,000                    
|                                            
|Interest and other income/(expense), net     |                                | (28,000                     
|                                             |                                |                             
|Income/(loss) before income taxes            |                                | (259,000                    
|                                            
|Provision/(benefit) for income taxes         |                                | (101,000                    
|                                             |                                |                             
|Net income/(loss)                            |                                | $  (158,000                 
|                                             |                                |                             
|Earnings per share (basic and diluted)       |                                | $       (0.15               
|                                             |                                |                             
|Shares outstanding (basic and diluted)       |                                | 1,064,680                   
|                                             |                                |                             

|The accompanying notes
are an integral part of these financial statements



3
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|NITCHES,
INC. AND SUBSIDIARIES


Condensed
Consolidated Statements of Cash Flows


(Unaudited)
|----------------------------------------------------------------------------------------------

|                                                     | Six Months EndedFebruary 28,
|---------------------------------------------------- | ----------------------------
|
|                                                     |                             
|Net cash provided by operating activities            |                             
|                                                     |                             
|Cash flows from investing activities:                |                             
|Capital expenditures                                 |                             
|                                                     |                             
|Cash flows from financing activities:                |                             
|Dividends paid                                       |                             
|                                                     |                             
|Net increase (decrease) in cash and cash equivalents |                             
|                                                     |                             
|Cash and cash equivalents at beginning of period     |                             
|                                                     |                             
|Cash and cash equivalents at end of period           |                             
|                                                     |                             
|Supplemental disclosures of cash flow information:   |                             
|Cash paid during the period:                         |                             
|Interest                                             |                             
|Income taxes                                         |                             

|The accompanying notes
are an integral part of these financial statements


4
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|NITCHES,
INC. AND SUBSIDIARIES


Notes to Condensed
Consolidated Financial Statements
|-------------------------------------------------------------------------------------

|1. |  | Description
of Business
|-- |  | -----------------------

|Nitches,
Inc. (the "Company") is a wholesale importer and distributor primarily of womens
clothing manufactured to its specifications and distributed in the United States under
Company brand labels and private retailer labels.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. |  | Condensed
Financial Statements:
|-- |  | -------------------------------

|The
accompanying unaudited consolidated financial statements have been prepared in
accordance with the instructions to Form 10-Q. They do not include all
information and footnotes necessary for a fair presentation of financial
position and results of operations and cash flows in conformity with generally
accepted accounting principles. These consolidated financial statements should
be read in conjunction with the consolidated financial statements and related
notes contained in the Companys Annual Report on Form 10-K for the year
ended August 31, 2001. In the opinion of Management, all adjustments considered
necessary for a fair presentation have been included in the interim period.
Operating results for the six months ended February 28, 2002 are not necessarily
indicative of the results that may be expected for the year ending August 31,
2002.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. |  | Earnings
Per share:
|-- |  | -------------------

|At
February 28, 2002, there were no stock options or similar instruments outstanding
and therefore no dilutive effect to the weighted average number of shares
outstanding.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. |  | Inventories:
|-- |  | ------------

|                | February 28,2002 | August 31,2001
|--------------- | ---------------- | --------------
|                |                  |               
|Fabric and trim |                  | $     78,000  
|Finished goods  |                  | 3,455,000     
|                |                  |               
|                |                  | $3,533,000    
|                |                  |               

|5. |  | Trade
accounts receivable:
|-- |  | --------------------------

|Pursuant
to the terms of an agreement between Nitches and a factor, Nitches sells a
majority of its trade accounts receivable to the factor on a pre-approved,
non-recourse basis. The Company may request advances in anticipation of customer
collections and open letters of credit through the factor, all of which are
collateralized by all of the Companys assets. Outstanding advances are
charged interest at the factors prime rate less one half percent. Advances
and contingent liabilities for irrevocable letters of credit outstanding are as
follows:


5
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|NITCHES,
INC. AND SUBSIDIARIES


Notes to Condensed
Consolidated Financial Statement (continued)
|------------------------------------------------------------------------------------------------

|5. |  | Trade
accounts receivable (continued):
|-- |  | --------------------------------------

|                                                         | February 28,2002 | August 31,2001
|-------------------------------------------------------- | ---------------- | --------------
|                                                         |                  |               
|Receivables assigned to factor:                          |                  |               
|Non-recourse                                             |                  | $ 4,354,000   
|Recourse                                                 |                  | 268,000       
|Advances from factor                                     |                  | (1,080,000    
|                                                         |                  |               
|Due from factor                                          |                  | 3,542,000     
|Non-factored accounts receivable                         |                  | 80,000        
|Allowance for customer credits and doubtful accounts     |                  | (304,000      
|                                                         |                  |               
|                                                         |                  | $ 3,318,000   
|                                                         |                  |               
|Contingent liabilities for irrevocable letters of credit |                  | $ 2,104,000   
|                                                         |                  |               

|The
factoring agreement allows the Company to borrow up to $15,000,000 limited by
certain percentages of outstanding accounts receivable and finished goods
inventory owned by the Company. The Companys Chairman has provided a
$1,000,000 personal guarantee in connection with the factoring arrangement.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6. |  | Special
dividends:
|-- |  | ------------------

|On
February 8, 2002, the Company paid a dividend of $.15 (fifteen cents) per share
for a total of approximately $159,000 to the shareholders of record as of
January 25, 2002. Additionally, on December 7, 2001 the Company paid a dividend
of $.15 (fifteen cents) per share for a total of approximately $159,000 to the
shareholders of record as of November 23, 2001. During fiscal 2001, the Company
declared and paid dividends of $1.35 per share.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7. |  | Significant
Customers:
|-- |  | ----------------------

|Sales
to three separate customers (Mervyns, Kohls and Sears) accounted for
55.1%, 9.1% and 9.0%, respectively, of the Companys net sales in the three
months ended February 28, 2002. The same three customers accounted for 30.6%,
14.5% and 24.7% of the Companys net sales in the three months ended
February 28, 2001. Two customers (Mervyns and Kohls) accounted for
50.3% and 20.6% of the Companys net sales for the six months ended
February 28, 2002.


Two
customers (Mervyns and Sears) accounted for 69.5% and 11.2% respectively,
of the Companys trade receivable balance at February 28, 2002. Three
customers accounted for 28.5%, 30.3% and 11.7% of the Companys trade
receivable balance at February 28, 2001.



6
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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


Results of
Operations


Six Months Ended
February 28, 2002 Compared to the Six Months Ended February 28, 2001


Net
sales for the six months ended February 28, 2002 decreased approximately $2.4
million (13.5%) as compared to the six months ended February 28, 2001. This
decline was attributable to a decrease in unit sales in the Companys
sleepwear and western wear product lines, due primarily to the general economic slowdown
in the U.S.


Cost
of sales as a percent of net sales increased 4.5%, generating a lower gross
profit margin of 22.1% for the six months ended February 28, 2002 as compared to
26.6% for the year earlier period. The decrease came as the result of the
proportionally larger decline in sales of higher margin western wear product.
The Companys product mix constantly changes to reflect customer mix,
fashion trends and changing seasons. Consequently, gross margin is likely to
vary on a quarter-to-quarter basis and in comparison to gross margins generated
in the same period of prior fiscal years.


Selling,
general and administrative expenses for the first half of fiscal 2002 declined
$342,000 as compared to a year ago, due primarily to a decrease in sales
commissions in line with the reduced sales volume noted above. Expenses
increased as a percent of net sales to 21.7% from 20.7% in the year earlier
period, due to the decrease in net sales from the earlier period.


Three Months Ended
February 28, 2002 Compared to the Three Months Ended February 28, 2001


Net
sales for the three months ended February 28, 2002 decreased approximately $1.3
million (18.7%) as compared to the three months ended February 28, 2001. This
decline was attributable to a decrease in unit sales in the Companys
sleepwear and western wear product lines, due primarily to the general economic slowdown
in the U.S.


Cost
of sales as a percent of net sales increased 3.9%, generating a lower gross
profit margin of 23.5% for the three months ended February 28, 2002 as compared
to 27.4% for the year earlier period. The decrease came as the result of the
proportionally larger decline in sales of higher margin western wear product.
The Companys product mix constantly changes to reflect customer mix,
fashion trends and changing seasons. Consequently, gross margin is likely to
vary on a quarter-to-quarter basis and in comparison to gross margins generated
in the same period of prior fiscal years.


Selling,
general and administrative expenses for the second quarter of fiscal 2002
declined $194,000 as compared to a year ago, due primarily to a decrease in
sales commissions in line with the reduced sales volume noted above. Expenses
increased as a percent of net sales to 27.6% from 25.1% in the year earlier
period, due to the decrease in net sales from the earlier period.


Liquidity and Capital
Resources


Working
capital declined to $6.1 million at February 28, 2002 from $6.5 million at
August 31, 2001. However, the current ratio increased to 5.49:1 at February 28,
2002 from 3.41:1 at August 31, 2001.


The
Company paid a dividend of $.15 (fifteen cents) per share on February 8, 2002,
for a total of approximately $159,000. The Company also paid a dividend of $.15
(fifteen cents) per share on December 7, 2001, for a total of approximately
$159,000.


The
Company sells substantially all of its trade receivables to a factor (Tyco
Capital, previously CIT) on a pre-approved, non-recourse basis. The Company
attempts to make any recourse shipments on a COD basis or ensure that the
customers payments are backed by a commercial or standby letter of credit
issued by the customers bank. The amount of the Companys receivables
that were recourse and were not made on a COD basis or supported by commercial
or standby letters of credit at February 28, 2002 was approximately $348,000 of
which approximately $44,000 had been collected through March 31, 2002.


7
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Payment
for non-recourse factored receivables is made at the time customers make payment
to Tyco Capital or, if a customer is financially unable to make payment, within
approximately 180 days of the invoice due date. Under the Discount Factoring
Agreement, the Company can request advances in anticipation of customer
collections at Tyco Capitals prime rate (currently 4.75%) less one-half
percent, and open letters of credit through Tyco Capital. The amount of
borrowings by the Company, including a portion of outstanding letters of credit,
are limited to certain percentages of outstanding accounts receivable and
finished goods inventory owned by the Company. Borrowings are collateralized by
all of the assets of the Company as well as a $1 million guaranty of the
Companys Chairman. At February 28, 2002, the Company had outstanding
letters of credit of approximately $2.1 million for the purchase of finished
goods, which had been opened through Tyco Capital. The Discount Factoring
Agreement can be terminated by Tyco Capital on 60-days written notice.


The Company believes the Discount Factoring Agreement with Tyco Capital,
along with expected cash flow from operating activities and current levels of
working capital, are adequate to fulfill the Companys liquidity needs for
the foreseeable future.


Inventory


In
its ordinary course of operations, the Company generally makes some sales below
its normal selling prices or below cost. Based on prior experience, management
believes this will be true for some inventory held on or acquired after February
28, 2002. The amount of such sales depends on several factors, including general
economic conditions, market conditions within the apparel industry, the
desirability of the styles held in inventory and competitive pressures from
other garment suppliers.


The
Companys inventory decreased from $5.4 million at August 31, 2001 to $3.5 million at
February 28, 2002. The Company has established an inventory markdown reserve as of
February 28, 2002, which management believes will be sufficient for current inventory
that is expected to sell below cost in the future. There can be no assurance that the
Company will realize its expected selling prices, or that the inventory markdown reserve
will be adequate, for items in inventory as of February 28, 2002 for which customer sales
orders have not yet been received. The inventory markdown reserve is calculated based on
specific identification of aged goods and styles that are slow-moving or selling
off-price.


Backlog


The
Company had unfilled customer orders of $10.1 million at February 28, 2002 compared to
$13.6 million at February 28, 2001, with such orders generally scheduled for delivery by
August 2002 and August 2001, respectively. Reduced orders in both the sleepwear and
western wear product lines contributed to the decrease in backlog of $3.5 million. These
amounts include both confirmed and unconfirmed orders that the Company believes, based on
industry practice and past experience, will be confirmed. While cancellations, rejections
and returns have generally not been material in the past, there can be no assurance that
cancellations, rejections and returns will not reduce the amount of sales realized from
the backlog of orders at February 28, 2002. Because of the Companys reliance upon a few
major accounts, any adverse impact of the current economic downturn on one or more of
these customers could lead to the cancellation of existing orders and/or an inability to
secure future orders, which would have a material adverse financial effect on the Company.


Impact of
Exchange Rates


While
the Company purchases over 90% of its products from foreign manufacturers, all
of its purchases are denominated in United States dollars. Because the
Companys products are sold primarily in the United States, in dollar
denominated transactions, the Company does not engage in hedging or other
arbitrage to reduce currency risk. An increase in the value of the dollar versus
foreign currencies could enhance the Companys purchasing power for new
purchase orders and reduce its cost of goods sold. Conversely, a decrease in the
value of the dollar relative to foreign currencies could result in an increase
in the Companys cost of manufacturing for new purchase orders and costs of
goods sold.


8
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Impact of
Inflation and Deflation


Management
does not believe that inflation has had any material impact upon the
Companys revenues or income from operations to date. However, continued
deflation in womens clothing prices may put pressure on gross margins for
the balance of fiscal 2002. The strong resistance on the part of the consumer to
increases in price and increasing fabric and labor costs lead to an increased
cost of goods on a percentage basis.


Cautionary
Statement Under the Private Securities Litigation Reform Act of 1995


Statements
in the quarterly report on Form 10-Q under the caption Managements
Discussion and Analysis of Financial Condition and Results of Operations,
as well as oral statements that may be made by the Company or by officers,
directors or employees of the Company acting on the Companys behalf, that
are not historical fact constitute forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking
statements involve known and unknown risks and uncertainties that may cause the
Companys actual results in future periods to differ materially from
forecasted results. Those risks include a softening of retailer or consumer
acceptance of the Companys products, pricing pressures and other
competitive forces, or unanticipated loss of a major customer. In addition, the
Companys business, operations and financial condition are subject to
reports and statements filed from time to time with the Securities and Exchange
Commission.


PART II.
OTHER INFORMATION


Item 1. Legal Proceedings


There
were no material legal proceedings to which the Company or any of its
subsidiaries was a party in the six months ended February 28, 2002.


Item 6. Exhibits and Reports on Form
8-K


There
were no reports on Form 8-K during the quarter ended February 28, 2002.


SIGNATURES


Pursuant to the requirement
of the Securities Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned there unto duly authorized.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|April 15, 2002 |  | NITCHES, INC.
     RegistrantBy:     /s/ Steven P. Wyandt
Steven P. Wyandt
As Principal Financial Officer and on
       behalf of the Registrant
|-------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9
|-