|SECURITIES AND
EXCHANGE COMMISSIONWashington, D.C. 20549


Form 10-Q


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


For the
quarterly period ended: May 31, 2003


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. Employer Identification 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        |  | Name
      of each 
      exchange on which registered
|-------------------------------- |  | ------------------------------------------------------
|                                 |  |                                                       
|Common
      Stock, no par value |  | 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 May 31, 2003 the
Registrant had 1,171,169 shares of common stock outstanding.

1
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|PART I
 FINANCIAL INFORMATION


Item 1. Financial Statements


NITCHES, INC. AND
SUBSIDIARIESCondensed Consolidated Balance Sheets
|-----------------------------------------------------------------------------------------------------------------------------------

|ASSETS                                                            
|------------------------------------------------------------------
|                                                                  
|                                                                  
|                                                                  
|                                                                  
|Current
      assets:                                             
|Cash
      and cash equivalents                                   
|Receivables:                                                      
|Trade
      accounts, less allowances                             
|Due
      from affiliates and employees                           
|                                                                  
|Total
      receivables                                           
|                                                                  
|Refundable
      income taxes                                     
|Inventories                                                       
|Deferred
      income taxes                                       
|Other
      current assets                                        
|                                                                  
|Total
      current assets                                        
|                                                                  
|Investment
      in Designer Intimates, Inc.                      
|Furniture,
      fixtures and equipment, net                      
|Deferred
      income taxes                                       
|Other
      assets                                                
|                                                                  
|                                                                  
|                                                                  
|                                                                  
|LIABILITIES
      AND SHAREHOLDERS EQUITY                        
|                                                                  
|Current
      liabilities:                                        
|Accounts
      payable                                            
|Accrued
      expenses                                            
|                                                                  
|Total
      current liabilities                                   
|                                                                  
|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;   
|1,171,169
      shares issued and outstanding                     
|Retained
      earnings                                           
|                                                                  
|Total
      shareholders equity                                  
|                                                                  
|                                                                  
|                                                                  

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


2
|------------------------------------------------------------------------------

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

|                                                   | Three
      Months Ended
      May 31, |           | Nine
      Months Ended
      May 31, |  
|-------------------------------------------------- | -------------------------------------- | --------- | ------------------------------------- | -
|                                                   |                                        |           |                                       |  
|                                                   | 2003                                   |           | 2002                                  |  
|                                                   |                                        |           |                                       |  
|                                                   |                                        |           |                                       |  
|Net
      sales                                    | $                                      | 7,028,000 |                                       | $
|                                                   |                                        |           |                                       |  
|Cost
      of goods sold                           |                                        | 4,884,000 |                                       |  
|                                                   |                                        |           |                                       |  
|                                                   |                                        |           |                                       |  
|Gross
      profit                                 |                                        | 2,144,000 |                                       |  
|                                                   |                                        |           |                                       |  
|Selling,
      general and administrative expenses |                                        | 2,009,000 |                                       |  
|                                                   |                                        |           |                                       |  
|                                                   |                                        |           |                                       |  
|Income/(loss)
      from operations                |                                        | 135,000   |                                       |  
|                                                   |                                        |           |                                       |  
|Interest
      and other income                    |                                        |           |                                       |  
|Interest
      expense                             |                                        | (11,000   | )                                     |  
|Income/(loss)
      from unconsolidated subsidiary |                                        | (159,000  | )                                     |  
|                                                   |                                        |           |                                       |  
|                                                   |                                        |           |                                       |  
|Income/(loss)
      before income taxes            |                                        | (35,000   | )                                     |  
|                                                   |                                        |           |                                       |  
|Provision/(benefit)
      for income taxes         |                                        | 49,000    |                                       |  
|                                                   |                                        |           |                                       |  
|                                                   |                                        |           |                                       |  
|Net
      income/(loss)                            | $                                      | (84,000   | )                                     | $
|                                                   |                                        |           |                                       |  
|                                                   |                                        |           |                                       |  
|Earnings
      per share                           | $                                      | (0.07     | )                                     | $
|                                                   |                                        |           |                                       |  
|                                                   |                                        |           |                                       |  
|Shares
      outstanding                           |                                        | 1,171,169 |                                       |  
|                                                   |                                        |           |                                       |  
|                                                   |                                        |           |                                       |  
|Dividends
      per share                          | $                                      | 0.05      |                                       | $
|                                                   |                                        |           |                                       |  

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


3
|------------------------------------------------------------------------------

|NITCHES, INC. AND
SUBSIDIARIESCondensed Consolidated Statements of Cash Flows(Unaudited)
|----------------------------------------------------------------------------------------

|                                                           | Nine
      Months Ended
      May 31, |           
|---------------------------------------------------------- | ------------------------------------- | ----------
|                                                           |                                       |           
|                                                           | 2003                                  |           
|                                                           |                                       |           
|Net
      income                                           | $                                     | 227,000   
|Cash
      flows from operating activities:                |                                       |           
|Depreciation
      and amortization                        |                                       | 26,000    
|(Increase)
      decrease in accounts receivable           |                                       | 1,292,000 
|Decrease
      in inventories and other current assets     |                                       | 1,316,000 
|Decrease
      in trade payables and accrued expenses      |                                       | (2,397,000
|Non-cash
      income from unconsolidated subsidiary       |                                       | (73,000   
|                                                           |                                       |           
|Net
      cash provided by operating activities            | $                                     | 391,000   
|                                                           |                                       |           
|Cash
      flows from investing activities:                |                                       |           
|Capital
      expenditures                                 |                                       | (5,000    
|                                                           |                                       |           
|Cash
      flows from financing activities:                |                                       |           
|Dividends
      paid                                       |                                       | (293,000  
|                                                           |                                       |           
|                                                           |                                       |           
|Net
      increase (decrease) in cash and cash equivalents |                                       | 93,000    
|                                                           |                                       |           
|Cash
      and cash equivalents at beginning of period     |                                       | 182,000   
|                                                           |                                       |           
|Cash
      and cash equivalents at end of period           | $                                     | 275,000   
|                                                           |                                       |           
|                                                           |                                       |           
|Supplemental
      disclosures of cash flow information:   |                                       |           
|Cash
      paid during the period:                         |                                       |           
|Interest                                                   | $                                     | 74,000    
|Income
      taxes                                         |                                       |          
|                                                           |                                       |           
|Non-cash
      investing activity:                         |                                       |           
|Accrued
      earnings of unconsolidated subsidiary        | $                                     | 73,000    
|                                                           |                                       |           
|Non-cash
      financing activity:                         |                                       |           
|Stock
      dividend                                       | $                                     |          

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


4
|------------------------------------------------------------------------------

|NITCHES, INC. AND
SUBSIDIARIESNotes to Condensed Consolidated Financial Statements


1. Description of
Business


Nitches,
Inc. (the Company) is a wholesale importer and distributor of
clothing manufactured to its specifications and distributed in the United States
under Company brand labels and private retailer labels. The Companys
product lines include womens sleepwear and western wear and mens
casual wear.


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 in the United States of America. 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, 2002. In
the opinion of Management, all adjustments considered necessary for a fair
presentation have been included in the interim period. Operating results for the
nine months ended May 31, 2003 are not necessarily indicative of the results
that may be expected for the year ending August 31, 2003.


3. Earnings Per share:


At
May 31, 2003, there were no stock options or similar instruments outstanding and
therefore no dilutive effect to the number of shares outstanding.


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

| |                        | May
      31,
      2003 |           | August
      31,
      2002
| | ---------------------- | ------------------------ | --------- | ---------------------------
| |                        |                          |           |                            
| | Fabric
      and trim  | $                        | 276,000   |                            
| | Work in
      progress |                          | 18,000    |                            
| | Finished
      goods   |                          | 3,646,000 |                            
| |                        |                          |           |                            
| |                        | $                        | 3,940,000 |                            
| |                        |                          |           |                            

|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 price at which the accounts are sold is the invoice
amount reduced by the factor commission (.3% of the invoice amount) and all
selling discounts. For accounts sold to the factor without recourse, the factor
is responsible for collection, assumes all credit risk, and obtains all of the
rights and remedies against the companys customers. For such accounts,
payment is due from the factor upon the earlier of the payment of the receivable
to the factor by the customer, or the maturity of the receivable (generally 180
days from the date of shipment to the customer). As of May 31, 2003,
non-recourse receivables totaled $4,340,000.


Trade
accounts receivable not sold to the factor remain in the custody and control of
the Company and the Company maintains all credit risk on those accounts as well
as accounts which are sold to the factor with recourse. The combined credit risk
for non-factored and recourse receivables as of May 31, 2003, totaled $433,000.


The
Company may request payment from the factor in advance of the collection date or
maturity. Any such advance payments are assessed an interest charge through the
collection date or maturity at the factors prime rate less 1.5% (one and
one half percent) per annum. The companys obligations with respect to
advances from the factor are limited to the interest charges thereon. Advance
payments are limited to a maximum of 85% (eighty-five percent) of eligible
accounts receivable. The factoring agreement also provides for the issuance of
irrevocable letters of credit for the Companys purchase of inventory in
the normal course of its business. Letters of credit are subject to a $6 million
limit. All assets of the company collateralize the advances and letters of
credit. The Companys Chairman has also provided a personal guaranty in
connection with the factoring arrangement.


5
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|NITCHES, INC. AND
SUBSIDIARIESNotes to Condensed Consolidated Financial Statement (continued)



5. Trade accounts
receivable (continued):


The
status of the Companys trade accounts receivable and letters of credit are
as follows:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |                                                                | May
      31,
      2003 |            | August
      31,
      2002 |  
| | -------------------------------------------------------------- | ------------------------ | ---------- | --------------------------- | -
| |                                                                |                          |            |                             |  
| | Receivables
      assigned to factor:                          |                          |            |                             |  
| | Non-recourse                                                   | $                        | 4,340,000  |                             | $
| | Recourse                                                       |                          | 294,000    |                             |  
| | Advance
      payments from factor                             |                          | (1,380,000 | )                           |  
| |                                                                |                          |            |                             |  
| | Due
      from factor                                          |                          | 3,254,000  |                             |  
| | Non-factored
      accounts receivable                         |                          | 139,000    |                             |  
| | Allowance
      for customer credits and doubtful accounts     |                          | (246,000   | )                           |  
| |                                                                |                          |            |                             |  
| |                                                                | $                        | 3,147,000  |                             | $
| |                                                                |                          |            |                             |  
| |                                                                |                          |            |                             |  
| | Contingent
      liabilities for irrevocable letters of credit | $                        | 2,549,000  |                             | $
| |                                                                |                          |            |                             |  

|6. Dividends:


The
Company paid a dividend of $.05 (five cents) per share on, December 13, 2002 for
a total of approximately $59,000, to the shareholders of record as of November
29, 2002. Additionally, the Company paid a dividend of $.15 (fifteen cents) per
share on February 14, 2003 for a total of approximately $176,000, to the
shareholders of record as of January 31, 2003. Furthermore, the Company paid a
dividend of $.05 (five cents) per share on May 9, 2003 for a total of
approximately $59,000, to the shareholders of record as of April 25, 2003.
During fiscal 2002 the Company declared and paid dividends of $.45 per share.


7. Significant
Customers:


Sales
to two separate customers, Kohls and Mervyns, accounted for 23.7%
and 12.3% respectively of the Companys net sales in the three months ended
May 31, 2003. Two customers (Mervyns and Kohls) accounted for 33.0%
and 14.3% of the Companys net sales in the three months ended May 31,
2002. Three customers (Kohls, Mervyns and Sears) accounted for
31.5%, 21.3% and 14.4% of the Companys net sales for the nine months ended
May 31, 2003.


Two
customers, Kohls & Mervyns, accounted for 19.0% and 16.3%
respectively of the Companys trade receivable balance as of May 31, 2003.
Three customers (Mervyns, Sears and Kohls) accounted for 45.6%,
14.0% and 13.4% respectively of the Companys trade receivable balance at
May 31, 2002.


8. Minority Interest:


In
October 2002 the Company acquired a 28% interest in Designer Intimates,  Inc., which owns
100% of NAP, Inc., a New York-based  intimate apparel company.  Designer Intimates had
acquired NAP from its founders and obtained a credit line of  approximately  $12 million
from HSBC,  secured by the  inventory and accounts  receivable  of NAP and the
 guarantees of shareholders  of Designer  Intimates.  Nitches  guaranteed $3 million of
this credit line and this  guarantee  formed the  consideration  from Nitches for its 28%
 ownership  interest in Designer  Intimates.  Nitches  reports any income or loss from
the ongoing  operation  of Designer  Intimates  using the equity  method of  accounting,
 whereby  Nitches 28% interest in Designer  Intimates is reported as a single line item
on the Consolidated  Statement of Income.  For October through May, the Company
recognized $73,000 in income from the unconsolidated subsidiary.  This income is reported
net of tax and is not taxable to the Company.  For that same period, Designer Intimates
had net income of $262,000 on sales of $57.3 million.


Following
are the unaudited condensed financial statements of Designer Intimates, Inc. as
of May 31, 2003 for the 3 and 8 month periods then ended:


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

|Designer Intimates,
Inc.Consolidated Balance Sheet(Unaudited)
|-------------------------------------------------------------

| |                                                         | May
      31, 2003
| | ------------------------------------------------------- | ------------------
| |                                                         |                   
| | Assets                                                  |                   
| |                                                         |                   
| | Accounts
      receivable                               | $                 
| | Inventory                                               |                   
| | Other current
      assets                              |                   
| |                                                         |                   
| |                                                         |                   
| | Total current
      assets                              |                   
| |                                                         |                   
| | Fixed assets
      (net of depreciation & amortization) |                   
| | Other non-current
      assets                          |                   
| |                                                         |                   
| |                                                         |                   
| | Total Assets                                            | $                 
| |                                                         |                   
| |                                                         |                   
| | Liabilities                                             |                   
| |                                                         |                   
| | Loans payable                                           | $                 
| | Accounts
      payable                                  |                   
| | Other current
      liabilities                         |                   
| |                                                         |                   
| |                                                         |                   
| | Total current
      liabilities                         |                   
| |                                                         |                   
| | Shareholders
      equity                              |                   
| |                                                         |                   
| |                                                         |                   
| | Total liabilities
      and shareholders equity        | $                 
| |                                                         |                   

|Designer Intimates,
Inc.Consolidated Income Statements(Unaudited)
|-----------------------------------------------------------------

|                                           | Three
      Months Ended
      May 31, 2003 |            | Eight
      Months Ended
      May 31, 2003 |  
|------------------------------------------ | ------------------------------------------- | ---------- | ------------------------------------------- | -
|                                           |                                             |            |                                             |  
|Net
      Sales                            | $                                           | 11,796,000 |                                             | $
|Cost of
      sales                        |                                             | 9,009,000  |                                             |  
|                                           |                                             |            |                                             |  
|Gross profit                               |                                             | 2,787,000  |                                             |  
|                                           |                                             |            |                                             |  
|Operating
      expenses                   |                                             | 3,645,000  |                                             |  
|Amortization
      of intangible assets    |                                             | 46,000     |                                             |  
|                                           |                                             |            |                                             |  
|Income
      from operations               |                                             | (904,000   | )                                           |  
|Interest
      expenses                    |                                             | 64,000     |                                             |  
|Other (income)                             |                                             |           |                                             |  
|                                           |                                             |            |                                             |  
|Income/(loss)
      before income taxes    |                                             | (968,000   | )                                           |  
|Provision/(benefit)
      for income taxes |                                             | (400,000   | )                                           |  
|                                           |                                             |            |                                             |  
|Net income/(loss)                          | $                                           | (568,000   | )                                           | $
|                                           |                                             |            |                                             |  

|7
|-

|9. New Accounting
Pronouncement:


In
December 2002, the Statement of Financial Accounting Standard No. 148 (SFAS no.
148Accounting for Stock-Based Compensation) was issued. SFAS no. 148 is
effective for fiscal years ending after December 15, 2002 and for interim
reporting periods beginning after December 15, 2002. This Statement amends FASB
Statement No. 123, Accounting for Stock-Based Compensation, to provide
alternative methods of transition for a voluntary change to the fair value based
method of accounting for stock-based employee compensation. In addition, this
Statement amends the disclosure requirements of Statement 123 to require
prominent disclosures in both annual and interim financial statements about the
method of accounting for stock-based employee compensation and the effect of the
method used on reported results. Because the Company does not currently have any
stock based compensation arrangements, the Company believes the implementation
of SFAS no. 148 will not have any immediate effect on the financial statements
or disclosures therein.


In
April 2003, the FASB issued SFAS No. 149 (Amendment of Statement 133 on Derivative
Instruments and Hedging Activities).  This Statement amends and clarifies financial
accounting and reporting for derivative instruments, including certain derivative
instruments embedded in other contracts (collectively referred to as derivatives) and for
hedging activities under FASB Statement No. 133, Accounting for Derivative Instruments
and Hedging Activities.  This Statement is effective for contracts entered into or
modified after June 30, 2003.  The Company does not believe SFAS No. 149 will have a
material impact on the Companys financial statements.


In
May 2003, the FASB issued SFAS No. 150 (Accounting for certain financial
instruments with characteristics of both liabilities and equity). This
Statement establishes standards for how an issuer classifies and measures
certain financial instruments with characteristics of both liabilities and
equity. This Statement is effective for financial instruments entered into or
modified after May 31, 2003, and otherwise is effective at the beginning of the
first interim period beginning after June 15, 2003. It is to be implemented by
reporting the cumulative effect of a change in an accounting principle for
financial instruments created before the issuance date of the Statement and
still existing at the beginning of the interim period of adoption. The Company
believes the adoption of SFAS No. 150 will not have a material impact on the
Companys financial statements.


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


CRITICAL ACCOUNTING POLICIES


Revenue
Recognition.The Company recognizes revenue at the time products are shipped based on
its terms of F.O.B. shipping point, where risk of loss and title transfer to the buyer at
time of shipment. The Company records sales in accordance with SEC Staff Accounting
Bulletin No. 101, Revenue Recognition in Financial Statements. Under these
guidelines, revenue is recognized when all of the following exist: persuasive evidence of
a sale arrangement exists, delivery of the product has occurred, the price is fixed or
determinable and payment is reasonably assured. Provisions are made currently for
estimated product returns and sales allowances.


Allowances
for Sales Returns, Doubtful Accounts and Other.Sales are recorded net of estimated
future returns, uncollectible accounts receivable and other customer related allowances.
Management analyzes historical returns and bad debt expense, current economic trends,
changes in customer demand and sell-through of our products when evaluating the adequacy
of these allowances. In addition, the Company may provide warehousing credits and other
allowances to certain customers in accordance with industry practice. These reserves are
determined based on historical experience, budgeted customer allowances and existing
commitments to customers. Although management believes it has established adequate
reserves with respect to these items, actual activity could vary from managements
estimates and such variances could have a material impact on reported results. At May 31,
2003, trade accounts receivable balance was $3.1 million, net of allowances of $246,000,
as compared to the balance of $4.4 million, net of allowances of $237,000 at August 31,
2002. At May 31, 2002, the trade accounts receivable balance was $4.0 million, net of
allowances for doubtful accounts of $348,000.


Inventory.The Company marks down its inventory for estimated obsolescence or unmarketable
inventory equal to the difference between the cost of inventory and the estimated net
realizable value based on assumptions about age of the inventory, future demand and
market conditions. This process provides for a new basis for the inventory until it is
sold. If actual market conditions are less favorable than those projected by management,
additional inventory markdowns may be required. The Companys inventory balance was
$3.9 million, net of inventory markdowns of $195,000, at May 31, 2003, as compared to an
inventory balance of $5.3 million, net of inventory write-downs of $75,000, at August 31,
2002. At May 31, 2002, the inventory balance was $2.8 million, net of inventory
write-downs of $153,000.


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

|Results of Operations


Nine Months Ended May
31, 2003 Compared to the Nine Months Ended May 31, 2002


      Net sales for the nine
        months ended May 31, 2003, increased approximately $1.1 million (4.9%)
        as compared to the nine months ended May 31, 2002. This increase was attributable
        to an increase in unit sales in the Companys western wear and menswear
        product lines, partially offset by a decline in sleepwear unit sales.
        The increase in menswear sales derived from reorders on printed t-shirts
        while the increase in western wear centered around reorders of the Companys
        western demin jeans.


Cost
of sales as a percent of net sales increased 0.2%, generating a gross profit
margin of 24.0% for the nine months ended May 31, 2003, as compared to 24.2% in
the year earlier period. The Company realized lower gross margins despite an
increase in unit sales due to deflationary pricing pressures (see Impact of
Inflation and Deflation below), as well as increased transportation and
handling costs incurred due the to rerouting of shipments as a result of the
West Coast port lockout in October 2002. Furthermore, 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 nine months ended May 31, 2003,
increased $288,000 as compared to a year ago, due primarily to an increase in
sales commissions and selling related expenses incurred in the third quarter, in
line with an increase in menswear product sales. Selling, general and
administrative expenses include costs and expenses pertaining to selling,
merchandising, warehousing, and shipping of products. For the current period
this category included $2,504,000 of selling and merchandising expenses and
$1,073,000 of shipping and warehousing expenses. This compares with $2,122,000
of selling and merchandising expenses and $1,046,000 of shipping and warehousing
expenses incurred for the nine months ended May 31, 2002. Expenses increased as
a percent of net sales to 23.4% from 23.3% in the year earlier period, due to
the increase in selling expenses over the earlier period.


Interest
expense decreased $4,000 for the current period to $74,000 as compared to
$78,000 for the nine months ended May 31, 2002. This slight decline was due to
the lower interest rate charged on advances made under the Companys
factoring agreement due to a lower prime interest rate.


The
Companys income tax provision for the nine months of fiscal 2003 reflects
the effect of a $29,000 tax expense accrued at an estimated 39% tax rate, less
the elimination of a deferred tax reserve in the amount of $109,000, for a net
tax benefit of $80,000. The Company utilized an estimated tax rate of 39% for
the nine months ended May 31, 2002. There were no tax reserve write-offs or
other tax adjustments in the earlier period.


Three Months Ended May
31, 2003 Compared to the Three Months Ended May 31, 2002


Net
sales for the three months ended May 31, 2003, decreased approximately $342,000
(4.6%) as compared to the three months ended May 31, 2002. This decrease was
attributable to a decrease in unit sales in the Companys sleepwear product
line.


Cost
of sales as a percent of net sales declined 1.8%, generating a higher gross
profit margin of 30.5% for the three months ended May 31, 2003 as compared to
28.7% for the year earlier period. The increase in gross margin came as the
result of a shift in sales volume to higher margin menswear 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 third quarter of fiscal 2003 rose
$22,000 as compared to a year ago, despite the decline in sales, due to an
increase in sales commissions and selling related expenses in line with the
higher sales volume in the Companys menswear product line, partially
offset by a reduction in administrative expenses. Expenses included $1,019,000
of selling and merchandising expenses and $353,000 of shipping and warehousing
expenses. This compares with $850,000 of selling and merchandising expenses and
$346,000 of shipping and warehousing expenses incurred during the quarter ended
May 31, 2002. Expenses increased as a percent of net sales to 28.6% from 27.0%
in the year earlier period, due to the proportionally larger increase in
expenses from the earlier period.


9
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Interest
expense decreased $2,000 in the current quarter to $11,000 as compared to
$13,000 for the three months ended May 31, 2002. This slight decline was due to
the lower interest rate charged on advances made under the Companys
factoring agreement due to a lower prime interest rate.


The
Companys income tax provision for the three months ended May 31, 2003,
reflects a $49,000 tax expense accrued at an estimated 39% tax rate on the
Companys pretax income for the quarter of $124,000. The Company also
utilized an estimated tax rate of 39% for the three months ended May 31, 2002.
There were no tax reserve write-offs or other tax adjustments in either period.


Investment in
Unconsolidated Subsidiary


In
October 2002 the Company acquired a 28% interest in Designer Intimates,  Inc., which owns
100% of NAP, Inc., a New York-based  intimate apparel company.  Designer Intimates had
acquired NAP from its founders and obtained a credit line of  approximately  $12 million
from HSBC,  secured by the  inventory and accounts  receivable  of NAP and the
 guarantees of shareholders  of Designer  Intimates.  Nitches  guaranteed $3 million of
this credit line and this  guarantee  formed the  consideration  from Nitches for its 28%
 ownership  interest in Designer  Intimates.  Nitches  reports any income or loss from
the ongoing  operation  of Designer  Intimates  using the equity  method of  accounting,
 whereby  Nitches 28% interest in Designer  Intimates is reported as a single line
item on the Consolidated  Statement of Income.  For October through May, the Company
recognized $73,000 in income from the unconsolidated subsidiary.  This  income is
reported  net of tax and is not taxable to the  Company.  For that same  period,
 Designer  Intimates  had net income of $262,000 on sales of $57.3  million. Designer
Intimates is expected to have a fourth quarter loss and then is expected to return to
profitability in the first quarter of fiscal 2004.


Liquidity and Capital
Resources


Working
capital declined slightly to $6.0 million at May 31, 2003 from $6.1 million at
August 31, 2002. However, the current ratio increased to 4.2:1 at May 31, 2003
from 2.4:1 at August 31, 2002. At May 31, 2003, the Companys trade
receivables balance was $3.1 million, a decrease of $1.3 million from the
receivables balance at August 31, 2002. Because the Companys business is
seasonal, the trade receivables balance may be more meaningfully compared to the
balance of $4.0 million at May 31, 2002, rather than the year-end balance. In
comparison to the third quarter of fiscal 2002, trade receivables decreased
22.5% due to the decline in sales volume and a higher proportion of sales
occurring earlier in the current period.


Inventories
decreased 25.7% to $3.9 million at May 31, 2003, from $5.3 million at August 31,
2002, primarily due to the decline in sales of the Companys sleepwear
line. Because the Companys business is seasonal, the inventory level may
be more meaningfully compared to the balance of $2.8 million at May 31, 2002,
rather than the year-end balance. Inventories ending the current period
increased 39.3%, primarily due to increased late spring and summer deliveries in
the Companys menswear business as compared to the prior year. The Company
believes that its current inventory mix and amounts, combined with inventory
markdown reserves (see Critical Accounting Policies), are appropriate to respond
to anticipated market demand.


The
Company declared a dividend of $.05 (five cents) per share to shareholders of
record as of April 26, 2003 for a total of approximately $59,000. The Company
also declared a dividend of $.15 (fifteen cents) per share on January 31, 2003
for a total of approximately $176,000. Furthermore, the Company declared a
dividend of $.05 (five cents) per share on November 29, 2002 for a total of
approximately $59,000.


The
Company sells substantially all of its trade receivables to a factor (HSBC) 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
May 31, 2003 was approximately $433,000, of which approximately $296,000 had
been collected through June 30, 2003.


10
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|Payment
for non-recourse factored receivables is made at the time customers make payment
to HSBC or, if a customer is financially unable to make payment, within
approximately 180 days of the invoice due date. Under the factoring agreement,
the Company can request advances in anticipation of customer collections at
HSBCs prime rate (currently 4.25%) less one and one-half percent (1.5%).
The amount of advances available to the Company is limited to eighty-five
percent (85%) of non-recourse factored receivables.


The
Company may also issue letters of credit through HSBC for the purchase of
inventory in the normal course of its operations. Letters of credit are
subjected to a limit of $6 million. At May 31, 2003, the Company had outstanding
letters of credit of approximately $2.5 million for the purchase of finished
goods, which had been opened through HSBC.


The
factoring agreement does not contain any financial covenants to which the
Company must adhere. Advances are collateralized by all of the assets of the
Company as well as a personal guaranty of the Companys Chairman. The
factoring agreement can be terminated by HSBC on 30-days written notice. The
company believes the factoring agreement with HSBC, 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.


Contractual
Obligations and Commercial Commitments
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |                                                | Payments
      due/Commitments expiring per period
| | ---------------------------------------------- | --------------------------------------------------
| |                                                | Total
      
      Committed                      
| |                                                |                                                   
| | Operating
      leases                         | $                                                 
| | Letters
      of credit                        |                                                   
| | Guarantees                                     |                                                   
| |                                                |                                                   
| | Total
      obligations & 
        commitments | $                                                 
| |                                                |                                                   

|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 May 31,
2003. 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 $5.3 million at August 31, 2002 to $3.9
million at May 31, 2003. Because the Companys business is seasonal, the
inventory level may be more meaningfully compared to the balance of $2.8 million
at May 31, 2002, rather than the year-end balance. Inventories ending the
current period increased primarily due to increased late spring and summer
deliveries in the Companys menswear business as compared to the prior
year. The Company has established an inventory markdown reserve as of May 31,
2003, 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 May 31, 2003 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 $8.9 million at May 31, 2003 compared to $12.3 million
        at May 31, 2002, with such orders generally scheduled for delivery by
        November 2003 and November 2002, respectively. 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 May
        31, 2003.


      Reduced orders in the
        sleepwear product line contributed to the decrease in backlog of $3.4
        million. This reduction is due primarily to a significant reduction in
        orders from Sears because of the decision by Sears to directly import
        their sleepwear for the Spring, Summer and Fall 2003 seasons. However,
        subsequent to May 31, 2003, Sears has placed a sleepwear order for approximately
        $550,000 for delivery in November 2003. Because of the Companys
        reliance upon a few major accounts, any adverse impact of the current
        economic weakness 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.


11
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|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.


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. Management believes that the apparel
        sector in which the Company operates has been in a period of deflation,
        contrary to the modest inflation experienced in the economy in general.
        The persistence of the consumer to buy on sale merchandise
        has put pressure on retail gross margins, which in turn has led to downward
        pressure from retailers on wholesale gross margins, in the form of selling
        cost adjustments taken as deductions against invoices issued by the Company.
        In the apparel industry, these are commonly referred to as markdown allowances
        or chargebacks. Without a corresponding decrease in fabric and labor prices,
        these markdown allowances have led to a decline in wholesale gross margins.
        Management believes these modest deflationary pressures will continue
        into the foreseeable future. Future Operating Results
                      Business
        conditions in the apparel sector continue to be characterized by weak
        consumer demand, over supply, and deflation. The prolonged hard winter
        and the war in Iraq, coupled with the ongoing uncertainty of the overall
        economy have caused most retailers to use significant discounting in attempts
        to clear their spring and promote summer inventories. This has delayed
        the placement of future orders and reduced the quantity of many orders
        as they are placed. With these uncertainties, the Company is approaching
        the upcoming fourth quarter with caution and conservatism.
                      With
        the reduction in backlog and the potential for receiving selling cost
        adjustments from retailers, the Company expects to incur an operating
        loss for the fourth quarter. The Company will also record a loss on its
        investment in Designer Intimates.
                      The
        Company does not expect significant improvement in business conditions
        in the apparel sector for the remainder of the calendar year.


Item 4. Controls and Procedures


As
of May 31, 2003 the Chief  Executive and Financial  Officer  evaluated the  effectiveness
 of the design and operation of the Companys  disclosure  controls and procedures
pursuant to Exchange Act Rule 13a-14.  Based upon that  evaluation,  he concluded  that
the  disclosure  controls and  procedures of the Company are  effective in timely
 alerting of the material  information  required to be included in the periodic filings
with the Securities and Exchange  Commission and that the information  required to be
disclosed in these filings is recorded, processed, summarized, and reported within the
time periods specified in the rules and forms of the Commission.


There
have been no significant  changes in the Companys  internal controls or in other factors
that could  significantly  affect internal  controls  subsequent to the date of this
evaluation.


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.


12
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--------------------------------------

|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 nine months ended May 31, 2003.


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


On
February 28, 2003, the Company held its 2002 Annual Shareholders Meeting. At
that meeting, the shareholders elected the following directors to serve until
the next annual meeting of shareholders:


Arjun
C. Waney, Steven P. Wyandt, Eugene B. Price II, William L. Hoese, Paul M. Wyandt and
Allan R. Bailey


Item 6.              Exhibits and
Reports on Form 8-K


      The Company filed a Current
        Report on Form 8-K on November 1, 2002, announcing its acquisition of
        a 28% interest in Designer Intimates, Inc. On January 3, 2003, the Company
        filed an amended 8-K disclosing the financial statements for NAP, Inc.
        as of September 30, 2002. Additionally, on April 17, 2003, the Company
        filed an 8-K for its earnings press release dated April 15, 2003.


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.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|              |  |     | NITCHES,
      INC.
      
      
      Registrant                          
|------------- |  | --- | --------------------------------------------------------------------------------------------
|              |  |     |                                                                                             
|July 15, 2003 |  | By: | /s/
      Steven P. Wyandt
                                                 
|              |  |     | Steven P. Wyandt 
      As Principal Financial Officer and on
      behalf of the Registrant

|13
|--

|CERTIFICATIONS


I, Steven P. Wyandt, certify that:
|---------------------------------------------------

|1. |  | I
have reviewed this quarterly report on Form 10-Q of Nitches, Inc.;
|-- |  | --------------------------------------------------------------------

|2. |  | Based
on my knowledge, this annual report does not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements made, in light of
the circumstances under which such statements were made, not misleading with respect to
the period covered by this quarterly report; and
|-- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. |  | Based
on my knowledge, the financial statements, and other financial information included in
this quarterly report, fairly present in all material respects the financial condition,
results of operations and cash flows of the registrant as of, and for, the periods
presented in this quarterly report; and
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. |  | I
am responsible for establishing and maintaining the disclosure controls and procedures
(as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and I have:
|-- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | a) |  | designed
such disclosure controls and procedures to insure that material information relating to
the registrant, including its consolidated subsidiaries, is made known to me
           by others within those entities, particularly during the period in which this
quarterly report is being prepared;
| |  | -- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | b) |  | evaluated
the effectiveness of the registrants disclosure controls and procedures as of a date
within 90 days prior to the filing date of this quarterly report (the
           Evaluation Date); and
| |  | -- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | c) |  | presented
in this quarterly report my conclusions about the effectiveness of the disclosure
controls and procedures based on my evaluation as of the Evaluation Date;
| |  | -- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. |  | I
have disclosed, based on my most recent evaluation, to the registrants auditors and
the audit committee of registrants board of directors (or persons performing the
equivalent function):
|-- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | a) |  | all
significant deficiencies in the design or operation of internal controls which could
adversely affect the       registrants ability to record, process, summarize and
          report financial data and have identified for the registrants auditors any
material weakness in internal controls; and
| |  | -- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | b) |  | any
fraud, whether or not  material, that involves management or other employees who have a
significant role in the registrants internal controls; and
| |  | -- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------

|6. |  | I
have indicated in this quarterly report whether or not there were significant changes in
internal controls or in other factors that could significantly affect internal
      controls subsequent to the date of my most recent evaluation, including any
corrective actions with regards to significant deficiencies and material weaknesses.
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Date: July 15, 2003


/s/ Steven P. Wyandt
Steven P.
WyandtChief Executive Officer andChief Financial Officer




CERTIFICATION
PURSUANT TO18 U.S.C. SECTION 1350,AS ADOPTED PURSUANT TOSECTION 906 OF THE
SARBANES-OXLEY ACT OF 2002


I,
Steven P. Wyandt, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of Nitches, Inc.
on Form 10-Q for the nine months ended  May 31, 2003, fully complies with the
requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that
information contained in such Quarterly Report on Form 10-Q fairly presents in all
material respects the financial condition and results of operations of Nitches, Inc.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | By:
      /s/ Steven P. Wyandt
                 
| | ----------------------------------------------------------------
| | Name:
      Steven P. Wyandt                                    
| | Title:
      Chief Executive Officer and Chief Financial Officer

|14
|--