U.S. Securities and Exchange Commission
                             Washington, D.C. 20549

                                   FORM 10-QSB




[X]     QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 for the quarterly period ended March 31, 2000

[ ]     TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 for the transition period from _______ to _______


                           NATIONAL BEAUTY CORPORATION
                           ---------------------------
        (Exact name of small business issuer as specified in its charter)

                            BEAUTYMERCHANT.COM, INC.
                            ------------------------
                           (Former name of registrant)

          Nevada                                   13-3422912
     -----------                                   ----------
(State or other jurisdiction of                   (IRS Employer
incorporation or organization)              identification No.)


             4818 W. Commercial Blvd., Ft. Lauderdale, Florida 33319
             -------------------------------------------------------
                    (Address of principal executive offices)

                                 (954) 717-8680
                                 --------------
                           (Issuer's telephone number)



Check  whether  the issuer (1) filed all reports required to be filed by Section
13  or  15(d) of the Exchange Act during the past 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 [  ]

Number of shares of common stock outstanding as of
May 10, 2001: 11,749,974










<PAGE 1>


<TABLE>
<CAPTION>


                   NATIONAL BEAUTY CORPORATION & SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                   AS OF MARCH 31, 2001 AND DECEMBER 31, 2000


                               (Unaudited)
ASSETS                        March 31, 2001    Dec. 31, 2000
---------------------------
<S>                          <C>               <C>
CURRENT ASSETS:
---------------------------
Cash and cash equivalents .  $        49,168   $       56,191
Accounts receivable . . . .            1,929            1,684
Marketable securities . . .           38,500           68,000
Inventory . . . . . . . . .            3,853            3,564
Shareholder loan receivable            1,879            7,892
TOTAL CURRENT ASSETS. . . .           95,329          137,331
                             ----------------  ---------------

FIXED ASSETS
---------------------------
Furniture and fixtures. . .            6,521            6,521
Leasehold improvements. . .            2,000            2,000
Equipment . . . . . . . . .           32,185           32,185
Accumulated depreciation. .          (33,144)         (32,344)
NET FIXED ASSETS. . . . . .            7,562            8,362
                             ----------------  ---------------

OTHER ASSETS:
---------------------------
Deposits. . . . . . . . . .            3,700            3,700
TOTAL OTHER ASSETS. . . . .            3,700            3,700
                             ----------------  ---------------

TOTAL ASSETS. . . . . . . .  $       106,591   $      149,393
                             ================  ===============
</TABLE>













                 See accompanying notes to financial statements
<Page 2>



<TABLE>
<CAPTION>


                              NATIONAL BEAUTY CORPORATION & SUBSIDIARIES
                                CONSOLIDATED BALANCE SHEETS (CONTINUED)
                              AS OF MARCH 31, 2001 AND DECEMBER 31, 2000


                                                                       (Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY                                  March 31, 2001    Dec. 31, 2000
-------------------------------------------------------------------
<S>                                                                  <C>               <C>
CURRENT LIABILITIES
-------------------------------------------------------------------
Accounts payable and accrued expenses . . . . . . . . . . . . . . .  $         2,230   $        2,230
Current portion of capitalized lease obligation . . . . . . . . . .            1,787            1,862
TOTAL CURRENT LIABILITIES . . . . . . . . . . . . . . . . . . . . .            4,017            4,092

LONG-TERM DEBT
-------------------------------------------------------------------
Capitalized lease obligation. . . . . . . . . . . . . . . . . . . .            2,215            2,765

STOCKHOLDERS' EQUITY
-------------------------------------------------------------------
Common stock ($.001 par value, 100,000,000 shares authorized;
11,749,974 and 11,685,065 issued and outstanding at March 31, 2001
and December 31, 2000, respectively). . . . . . . . . . . . . . . .           11,750           11,685
Convertible preferred stock ($.001 par value; 50,000,000 shares
authorized, 1,000,000 shares issued and outstanding). . . . . . . .            1,000            1,000
Additional paid in capital. . . . . . . . . . . . . . . . . . . . .        1,160,317        1,157,137
Retained deficit. . . . . . . . . . . . . . . . . . . . . . . . . .       (1,072,708)      (1,027,286)
TOTAL STOCKHOLDERS' EQUITY. . . . . . . . . . . . . . . . . . . . .          100,359          142,536
                                                                     ----------------  ---------------

TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY. . . . . . . . . . . . . . . . . . . . . . . .  $       106,591   $      149,393
                                                                     ===============   ===============
</TABLE>

















                 See accompanying notes to financial statements
<Page 3>


<TABLE>
<CAPTION>


                   NATIONAL BEAUTY CORPORATION & SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
               FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000


                                           2001          2000
<S>                                    <C>           <C>

REVENUES:
-------------------------------------
Sales . . . . . . . . . . . . . . . .  $    87,287   $   107,640
Cost of Sales . . . . . . . . . . . .      (60,731)      (64,480)
GROSS PROFIT. . . . . . . . . . . . .       26,556        43,160
                                       ------------  ------------

EXPENSES:
-------------------------------------
Advertising . . . . . . . . . . . . .       13,511        44,919
Automobile. . . . . . . . . . . . . .        3,259         1,908
Bank service charges. . . . . . . . .        1,170           282
Consulting. . . . . . . . . . . . . .        3,245           -0-
Depreciation. . . . . . . . . . . . .          800           950
Employee leasing. . . . . . . . . . .          -0-         8,694
Insurance . . . . . . . . . . . . . .        5,544         6,545
Office expenses . . . . . . . . . . .        2,221         6,640
Payroll . . . . . . . . . . . . . . .          -0-        93,118
Professional fees . . . . . . . . . .        1,375        40,066
Public trading. . . . . . . . . . . .          -0-         1,605
Rent. . . . . . . . . . . . . . . . .        6,771         9,553
Repairs & maintenance . . . . . . . .           60           -0-
Taxes & licenses. . . . . . . . . . .        1,425           498
Telephone . . . . . . . . . . . . . .        2,508         4,733
Travel & entertainment. . . . . . . .          460           -0-
Utilities . . . . . . . . . . . . . .          129           342
Web development . . . . . . . . . . .          -0-        19,891
TOTAL EXPENSES. . . . . . . . . . . .       42,478       239,744
                                       ------------  ------------

OPERATING LOSS. . . . . . . . . . . .  $   (15,922)  $  (196,584)

OTHER INCOME (EXPENSE):
-------------------------------------
Unrealized loss on trading securities      (29,500)          -0-
Interest Expense. . . . . . . . . . .          -0-          (260)

NET INCOME. . . . . . . . . . . . . .  $   (45,422)  $  (196,844)
                                       ============= ============
  Net Income per Share -
  basic and fully diluted . . . . . .  $        **   $     (0.01)
  Weighted Average Shares . . . . . .   11,706,701    13,183,667
                                       ============  ============
** Less than $.01
</TABLE>



                 See accompanying notes to financial statements
<Page 4>






<TABLE>
<CAPTION>


                             NATIONAL BEAUTY CORPORATION & SUBSIDIARIES
                          CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                         FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000


                                                                                 2001        2000
<S>                                                                            <C>        <C>

CASH FLOWS FROM OPERATING ACTIVITIES:
-----------------------------------------------------------------------------
Net loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $(45,422)  $(196,844)
Adjustments to reconcile net loss to net cash provided by (used in) operating
activities:
Depreciation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       800         950
Common stock issued for services. . . . . . . . . . . . . . . . . . . . . . .     3,245      15,468
Unrealized loss on trading securities . . . . . . . . . . . . . . . . . . . .    29,500         -0-
(Increase) decrease in operating assets:
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      (245)      5,000
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      (289)         80
Prepaid expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       -0-     111,768
Deposits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       -0-         -0-
Increase (decrease) in accounts payable and accrued expenses. . . . . . . . .       -0-        (400)
NET CASH PROVIDED BY
(USED IN) OPERATING ACTIVITIES. . . . . . . . . . . . . . . . . . . . . . . .   (12,411)    (63,978)
                                                                               ---------  ----------

CASH FLOWS FROM INVESTING ACTIVITIES:
-----------------------------------------------------------------------------
Expenditures for leaseholds and equipment . . . . . . . . . . . . . . . . . .       -0-      (1,566)
NET CASH USED IN INVESTING ACTIVITIES . . . . . . . . . . . . . . . . . . . .       -0-      (1,566)
                                                                               ---------- ----------

CASH FLOWS FROM FINANCING ACTIVITIES:
-----------------------------------------------------------------------------
Common stock issuances. . . . . . . . . . . . . . . . . . . . . . . . . . . .       -0-     124,240
Repayment of shareholder loan receivable. . . . . . . . . . . . . . . . . . .     6,013         -0-
Principal repayments under capitalized lease. . . . . . . . . . . . . . . . .      (625)       (625)
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES. . . . . . . . . . . . . . .     5,388     123,615

NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS . . . . . . . . . . . . . . . . . . . . . . . . . .    (7,023)     58,071

CASH AND CASH EQUIVALENTS,
BEGINNING OF THE YEAR . . . . . . . . . . . . . . . . . . . . . . . . . . . .    56,191     111,428

END OF THE PERIOD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 49,168   $ 169,499
                                                                              ==========  ==========
SUPPLEMENTARY CASH FLOW
-----------------------------------------------------------------------------
INFORMATION OF NON-CASH FINANCING:
-----------------------------------------------------------------------------
Common stock issued for services. . . . . . . . . . . . . . . . . . . . . . .  $  3,245   $  15,468
</TABLE>




                 See accompanying notes to financial statements
<Page 5>




                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                   NATIONAL BEAUTY CORPORATION & SUBSIDIARIES
                           March 31, 2001 (UNAUDITED)


ITEM 1.
-------

NOTE 1 - BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial  information  and  pursuant  to  the  rules  and  regulations  of  the
Securities  and Exchange Commission. Accordingly, they do not include all of the
information  and  footnotes required by generally accepted accounting principles
for  complete  financial  statements.

In  the  opinion  of  management, the unaudited condensed consolidated financial
statements  contain all adjustments consisting only of normal recurring accruals
considered necessary to present fairly the Company's financial position at March
31,  2001,  the results of operations for the three month period ended March 31,
2001  and  2000,  and  cash  flows for the three months ended March 31, 2001 and
2000.  The  results  for  the  period  ended March 31, 2001, are not necessarily
indicative  of  the  results  to  be  expected for the entire fiscal year ending
December  31,  2001.

NOTE  2  -  EARNINGS  (LOSS)  PER  SHARE

The  following  represents  the  calculation  of  earnings  (loss)  per  share:

                                    Three               Three
                                    Months  Ended       Months  Ended
BASIC     & FULLY DILUTED*          March 31, 2001      March 31, 2000
-----     ----------------          --------------      --------------
Net Loss                            $     (45,422)     $     (196,844)

Less- preferred stock dividends            -0-                     -0-
                                  ------------          --------------

Net Loss                            $     (45,422)     $     (196,844)
Weighted average number
Of common shares                        11,706,701          13,183,667
                               -------------------    ----------------

Basic & Fully Diluted*
loss per share                    $        **                 $(.01)
                                 ==================    ================

*  The Company had no common stock equivalents during the periods presented
** Less than $(0.01)




<PAGE 6>



ITEM  2.     MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OR  PLAN  OF  OPERATION
--------

With  the  exception of historical facts stated herein, the matters discussed in
this  report  are  "forward  looking"  statements  that  involve  risks  and
uncertainties  that  could  cause  actual  results  to  differ  materially  from
projected  results.  Such  "forward  looking"  statements  include,  but are not
necessarily  limited  to,  statements  regarding  anticipated  levels  of future
revenues and earnings from operations of the Company. Readers of this report are
cautioned  not to put undue reliance on "forward looking" statements, which are,
by  their  nature,  uncertain  as reliable indicators of future performance. The
Company  disclaims  any  intent  or obligation to publicly update these "forward
looking"  statements,  whether as a result of new information, future events, or
otherwise.  In  addition  the  uncertainties  include,  but  are  not limited to
competitive  conditions involving E-commerce, and the sales of cosmetics, beauty
and  fragrance  products.

General  Description  of  Business
----------------------------------

NATIONAL  BEAUTY  CORPORATION  (The  'Company') is made up of three wholly owned
subsidiaries:  BeautyWorks  U.S.A., Inc.; BeautyMerchant.com, Inc.; and Cleaning
Express  U.S.A.  The  Company's objective is to become a leading beauty products
retailer  and  provider  of  beauty  services  to  enhance and brand itself as a
shopping  destination  for beauty products, fragrances and accessories.  Through
the  collective  efforts  of its subsidiaries, the Company is rapidly building a
customer  base  and  expanding  its  business  concept, while offering consumers
considerable  discounts on name-brand beauty products and cosmetics. The Company
plans  to  become a one-stop provider on that can assist even the most unique of
consumer  needs.  The  category  market for fragrances alone is estimated at $20
billion.

The  Company  believes  that  the  sale  of cosmetics, accessories and hair care
products  will  offer benefits to customers by providing convenient, competitive
pricing.  In  addition,  customers  can  either  enter our retail stores or shop
conveniently  online  to  purchase  gift  certificates,  browse  and  search for
favorite  beauty  and  cosmetic  products and participate in special promotions.
The Company expects to promote brand loyalty and repeat purchases by providing a
positive  experience  that  encourages  customers  to  return  frequently.

The  Company  plans  to  build  consumer  interest  with  the  following:
     Strong  initial  and  ongoing  branding
     Strong image building strategies (to be accomplished through billboards,
     radio, television and newspaper).
     Free product samples of ALISHA hair products.
     Strong cross-marketing with BeautyMerchant.com

The  Company  also  plans  an aggressive acquisition campaign of existing beauty
service  salons  with  established customer bases. The Company will preserve its
top  quality  image through active recruiting of beauty professional and through
exceptional  customer  service.  The  Company  is  also  seeking  to  enter into
marketing  relationships with National advertising agencies to establish concept
branding.

The  Company's  business  concept  can  be  summarized  with  the  following:
     Beauty  products and services represent a multi-billion dollar industry and
     remains  one  of  the  fastest  growing  in  the  U.S.  and  abroad.
     Beauty services include nails, hair, and skin care as core salon services.
     The Company utilizes existing beauty service operations to position
themselves and create National branding. Plans include developing the Company's
concept as establishing it a as a household name within our niche.

<PAGE 7>
Products  and  Geographic  Expansion

The  Company  intends  to  expand  its service businesses at the local level and
plans  to  accomplish  this  through additional retail storefront of BeautyWorks
U.S.A. Additional stores in the Las Vegas area are also under consideration. The
Company  plans  to  add  at  least  two  new  retail  stores  during  2001.

The  Company  began  retail  sales operations in early 2000, and will attempt to
expand  product sales on a continual basis. In addition, the Company has greater
flexibility  of  distribution  on  its  products  and will attempt to market its
concept,  'We  Sell  Beauty  For Less' on a National basis. The Company has made
significant  improvements  over  the  first  year  of  operations.

Additional  Risk  Factor

National  Beauty  Corporation,  a  Nevada  corporation,  has a limited operating
history  in  its  retailing  operations.  Having  just  started  the  retailing
operations  in  the  year  2000,  the Company has a short operating history upon
which  to  evaluate its business and prospects. As a new sales company, National
Beauty  Corporation  faces  intense  competitors,  and  must  manage  growth
effectively.  The  Company  may  not  succeed  in  addressing all challenges and
risks,  including  unpredictability  of  future  revenues.  To  be  successful,
National  Beauty  Corporation  plans  to  implement  the  following:

1.     Retain  existing  customers.
2.     Attract new customers.
3.     Meet customer demands.
4.     Fulfill all customer orders.
5.     Acquire additional sources for merchandise at discounted prices.
6.     Maintain sufficient website traffic.
7.     Increase our Internet exposure on BeautyMerchant.com.
8.     Monitor the competition.
9.     Successfully locate and acquire existing beauty operations for
       BeautyWorks U.S.A.

The  principal  suppliers  to  National  Beauty  Corporation  are  wholesale
distributors,  who  do  not  sell  retail.

The  National  Beauty  Corporation  in-house  staff  is projected to add 2-5 new
employees for the first 12 months of retail operations and with additional staff
to  be  added  relevant to the number of business service acquisitions completed
during  the  year. New employees will be managed by the three employees that are
presently  on  staff.

The  ability  to  become  profitable  depends  on the ability to generate higher
revenues  and  maintain  low  expense  levels.  The  Company's limited operating
history  makes  it  difficult  to  forecast  its  revenues.

Stock  Based  Compensation

Several key officers and management have elected to be compensated with stock by
S-8  registration.  This  has  provided  substantial  cash  savings.





<PAGE 8>

Additional  Financing

The Company may need to raise additional funds to meet operating requirements in
the  future.  If  the Company raises additional funds through issuance of equity
related  or  debt  securities,  such securities may have rights to the Company's
common  stock,  such  as  warrants  or  options.  Shareholders  may  experience
additional  dilution  from  exercise  of  these  equity instruments. The Company
cannot  be  certain that additional financing will be available when required or
at  all.

CLEANING  EXPRESS  USA.CLEANING EXPRESS USA.  The Company's operations primarily
involve  home  cleaning  services.  Through  its emphasis on budget pricing, the
Company  has  developed  a  market  in  the home cleaning industry.  The Company
currently  operates  two  offices  and  dispatches 40-50 workers in teams of two
workers  on  a  daily  basis.  The  present geographic area in which the Company
operates  includes  Broward  and South Palm Beach County areas of South Florida.

Marketing  for  the  home  cleaning  services is accomplished through print ads,
television  and radio commercials. Additionally, the Company utilizes a referral
program  that  rewards  customers  with future discounts for referring a client.

The home cleaning industry is highly competitive with respect to price, service,
quality  and location.  There are numerous, well-established, larger competitors
in  the  home  cleaning  industry  possessing  substantially  greater financial,
marketing,  personnel  and  other  resources  than the Company.  There can be no
assurance  that  the  Company  will  be  able  to respond to various competitive
factors  affecting  the  business.  The  Company  plans  to  gain  a competitive
advantage over its competitors in the home cleaning industry by offering quality
service  at  a low price. The Company has been successful in achieving this goal
since  1996  and  plans  to  further  expand  in South Florida by continuing its
current  marketing  strategy.

The primary market for Cleaning Express USA is individual households.  No single
customer  makes  up  more  than  ten  percent  of the total revenues of Cleaning
Express  USA.  The  Company does not expect that this will change in the future.

The  Company has three full time employees and contracts with 40-50 workers that
are  each  independently contracted with the Company to service and provide home
cleaning  services  to  existing  and  new  customers.

BEAUTYMERCHANT.COM,  INC.BEAUTYMAX.COM,  INC.  During January 2000, the Company,
through  its  wholly  owned  subsidiary  BeautyMerchant.com,  Inc.,  a  Florida
corporation,  developed a retail cosmetic and beauty product e-commerce Internet
site.  BeautyMerchant.com  was  developed  under the guidance of the CEO, Mr. Ed
Roth,  who  served  as a management consultant for beauty salons from 1978-1988.
During  this  time,  he  became  familiar  with retail cosmetics, hair, and skin
products  through  attending  various  trade  shows and studying consumer trends
concerning  their  retailing.  The  site  is  designed to create a marketing and
distribution  area  for  cosmetic,  hair,  nail and skin care and general beauty
lines  on  a  discounted  basis.

BeautyMerchant.com,  Inc. sells and distributes popular cosmetic, fragrances and
beauty  products, primarily to females in the 18-40 age bracket. Additionally, a
department  will  be  developed that focuses on the cosmetic and beauty needs of
individuals  from  a  variety  of  ethnic  backgrounds and skin color. Products,
development  and  resources in this area will be focused on filling the needs of
the  African-American  community  with  further  expansion  to additional ethnic
groups  planned  for  the  future.

<PAGE 9>

The  Company  will  attempt to develop the BeautyMerchant.com concept,  "We sell
beauty  for  less",  and  will  strive  to  provide  the  best prices available.
Currently,  the  Company  is  carrying  a  catalogue format, offering brand name
cosmetics  and  toiletries, totaling over 8,000 products, with new product lines
being  added  as  web  traffic  increases.  The  Company  maintains  a  floating
inventory  of  Products  through  its  distributors,  which  is  stored  at  the
distributors  location  as  product  sourcing  eliminates  the need for a costly
extended inventory. All customer orders are implemented by online credit card or
cyber  cash  systems  with  a virtual shopping cart. The Company offers a secure
shopping  environment,  partnering  with  Verio and Mercantec systems for secure
credit card transactions and easy to use ordering.  Visitors to the online store
are  able  to  shop  24 hours a day, regardless of location, and will be able to
shop  and  order  in  English,  Spanish,  or  French.

Beauty  products  are  marketed  over  the World Wide Web via the Internet.  The
Company  has  agreed  to a marketing alliance with MSN.com to advertise on their
portal  by  means  of banner ads and site affiliations.  Webcast1 Inc. will also
provide  links  and  banner impressions to BeautyMerchant.com.  The Company also
has  entered  an agreement with Webcast1 Inc. of Boca Raton, Florida to host the
site.  In  addition, the Company developed and marketed a 30 second T.V. spot to
promote  brand  awareness.  Other  marketing  strategies  are  presently  being
explored.

The  Company also plans to use in-house marketing and advertising to promote its
products.  The  Company  has  reduced  its  budget  for advertising for 2001 and
intends  to  grow  its  customer  base  through  cross  marketing  between  its
subsidiaries  and possible acquisitions of existing revenue producing companies.

The  Company  has  continually focused on the development and maintenance of the
site. In addition to a remodeling, the Company has added several new features to
the  'virtual  store  front.' The site now has a new 'look and feel' in order to
better  promote  the  Company's  products,  and  additional categories have been
added.

Browsing  and  Searching

BeautyMerchant.com  allows its customers to interactively search and browse more
than  8,500  name  brand  products.  The Company has created a "featured brands"
section  allowing  customers  to  explore  the  brand  names we offer.  Also, an
extended category list allows customers to search for their favorite products by
category.  New  products  are  expected  to  be  added  weekly.

Secure  Credit  Card  Payment

BeautyMerchant.com  utilizes secure software through Bank One Inc. a third party
cybercash  platform  for  e-commerce  transactions, providing encrypted personal
information,  including  credit  card  numbers,  names  and  addresses.

Fulfillment  and  Availability

All  of  the  Company's  products  are  shipped within 24 hours from distributor
partners.  Some  products  are  available within 3-7 days.  Others are generally
available within 4-6 weeks.  Some back order cosmetics and fragrances may not be
available  at  all.  The  Company  uses  e-mail  to  notify  customers  of order
conditions.  The  Company  seeks  to  provide  rapid and reliable fulfillment of
customer  orders.

<PAGE 10>



Customer  Service

The  Company  believes its ability to establish long-term relationships with its
customers  will encourage repeat sales.  The Company offers a toll free customer
service  telephone  number, and encourages e-mail inquiries for customer care 24
hours  a  day.

The  online  beauty supply industry is highly competitive with respect to price,
service,  quality and Internet marketing. As a result, the potential for failure
in  this  industry is significant.  There are numerous, well-established, larger
competitors  in  the online beauty supply industry with comprehensive web sites,
possessing  substantially  greater  financial,  marketing,  personnel  and other
resources  than the Company.  There can be no assurance that the Company will be
able  to  respond  to  various  competitive factors affecting the business.  The
Company  plans  to  gain  a competitive advantage over its competitors in online
beauty  products  industry  by  offering  a variety of quality products at a low
price, directly to the consumer.  This will be achieved by working directly with
wholesalers,  enabling  the  Company to get and pass on to the customer the best
prices  in  the online market.  The Company also plans to gain an advantage over
the  competition  by  providing  access  to  the web site in English, French and
Spanish.   The  Company  hopes  that  this will successfully increase its market
appeal  and  presence  with  a  wide  variety  of  cultures  and  communities.

BEAUTYWORKS  U.S.A.,  INC.  The  Company announced that it expanded its business
into  a  prototype  store  offering  beauty  retailing  and beauty services hair
styling,  and nail services at affordable pricing. Two retail 'brick and mortar'
stores  are  expected  to  be debut in the South Florida area. During the second
quarter  of  2001, the first retail store was officially opened and is presently
servicing  South  Florida  customers.

The  Company  has  retained  the services of Neal Realty and Development of Fort
Lauderdale,  Florida  to  search  for  additional shopping center locations. The
Company  believes  this exciting concept of offering National Beauty Corporation
products  in  conjunction  with its salon operation will enhance branding of our
other  operations.  The  Company  intends  on  cross-marketing  the  concepts.

BeautyWorks  U.S.A  plans  to  rollup  existing  beauty stores and 'mom and pop'
salons  and  add  state of the art design and retail display areas featuring our
own  private  label  products  as  well  as  designer fragrances and perfumes at
discount  prices. The Company expects this strategy to position its products for
a  National  branding and establish the company as a household name in on of the
fastest  growing  industries  in  the  United  States  and  abroad.

RESULTS  OF  OPERATIONS
-----------------------

Net  Income

The Company had a net loss of $(45,422), or less than $.01 per common share, for
the  three  months  ended  March  31,  2001, versus a net loss of $(196,844), or
$(.01)  for  the  same  period  ended March 31, 2000. The change in net loss was
primarily due to a decrease in administrative expenses relating to the operation
and  marketing  of  the  BeautyMerchant.com  online  superstore.

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Sales

Revenues  decreased  $20,353  or 19% to $87,287 for the three months ended March
31,  2001  as  compared with $107,640 for the three months ended March 31, 2000.
The  decrease  was  primarily  due  to  reducing advertising efforts to focus on
managing  expenses.  Average  selling  prices  and gross margins remained fairly
constant.

Expenses

Selling,  General,  and Administrative expenses for the three months ended March
31,  2001  decreased  $197,266  to  $42,478.  In comparison with the three-month
period  ended  March  31,  2000,  web  development,  advertising,  professional
expenses,  and  payroll  decreased  $19,891,  $31,408,  $38,691,  and  93,118,
respectively  due to the Company's plan to manage expenses and grow efficiently.
This  included  primarily  reducing  personnel  and  advertising.

Liquidity  and  Capital  Resources

On  March  31,  2001,  the  Company  had  cash of $49,168 and working capital of
$91,312.  This  compares with cash of $92,550 and working capital of $241,476 at
March  31,  2000. The decrease in working capital was due to a decrease in cash,
prepaid  expenses,  and  accounts  payable.

Net  cash  used  in  operating activities was $12,411 for the three months ended
March 31, 2001 as compared with net cash used in operating activities of $63,978
for  the  period  ended  March 31, 2000. The decrease in cash used was primarily
attributable  to  a  decrease  I  net  loss  for  the  period.

Net  cash used in investing activities was $-0- for the three months ended March
31,  2001  as  compared with cash used in operating activities of $1,566 for the
period  ended  March 31, 2000. Net cash used in investing activities during 2000
was  primarily  from  fixed  asset  purchases  during  the  period.

Net  cash  provided  by financing activities totaled $5,388 for the three months
ended  March 31, 2001 as compared with net cash provided by financing activities
of  $123,615 for the three months ended March 31, 2000. The decrease in net cash
provided  by  financing  activities  was  primarily  due  to  the  collection of
subscribed  common  stock  during  2000.

PART II. OTHER INFORMATION
--------

Item 1. Legal Proceedings

None.

Item 2. Changes in Securities

None.

Item 3. Defaults Upon Senior Securities

None.

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

None

Item 5. Other Information

During May 2001, the Company changed its name from BeautyMerchant.com to
National Beauty Corporation.

Item 6. Exhibits and Reports on Form 8-K

None




                                   SIGNATURES
                                   ----------

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                                   NATIONAL BEAUTY CORPORATION, INC.
                                        (Registrant)



Date:  May 10, 2001                     __________________________
                                        /S/Michael J. Bongiovanni
        Chief  Financial  Officer



















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