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  June  30,  2001

[  ]    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
August  9,  2001:  72,361










                              INDEX TO FORM 10-QSB
                              --------------------

                                                       Page  No.
                                                       ---------
PART  I
-------

Item  1.     Financial  Statements
     Consolidated  Balance  Sheets  -  June  30,  2001
     and  December  31,  2000                                 3

     Consolidated  Statements  of  Income  -
     Three  and  Six  Months Ended  June  30,  2001
     and  2000                                                4

     Consolidated  Statements of Cash Flows -
     Six Months Ended June 30, 2001 and 2000                  5

     Notes  to  Consolidated  Financial  Statements         6-7

Item  2.    Management's  Discussion  and  Analysis  of  Financial  Condition
            And  Results  of  Operations                   8-12

PART  II
--------

Item  2.     Changes  in  Securities                         13



































<TABLE>
<CAPTION>


                   NATIONAL BEAUTY CORPORATION & SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                    AS OF JUNE 30, 2001 AND DECEMBER 31, 2000

<S>                          <C>        <C>
                            (Unaudited)
                 ASSETS    June 30, 2001 Dec. 31, 2000
                 ------
CURRENT ASSETS:
---------------------------
Cash and cash equivalents .  $ 23,354   $ 56,191
Accounts receivable . . . .     1,929      1,684
Marketable securities . . .    12,592     68,000
Inventory . . . . . . . . .     4,087      3,564
Shareholder loan receivable     1,879      7,892
Prepaid expenses. . . . . .       370        -0-
TOTAL CURRENT ASSETS. . . .    44,211    137,331
                             ---------  ---------

FIXED ASSETS
---------------------------
Furniture and fixtures. . .    21,616      6,521
Leasehold improvements. . .     3,500      2,000
Equipment . . . . . . . . .    34,985     32,185
Accumulated depreciation. .   (34,236)   (32,344)
NET FIXED ASSETS. . . . . .    25,865      8,362
                             ---------  ---------

OTHER ASSETS:
---------------------------
Deposits. . . . . . . . . .     7,800      3,700
TOTAL OTHER ASSETS. . . . .     7,800      3,700
                             ---------  ---------

TOTAL ASSETS. . . . . . . .  $ 77,876   $149,393
                             =========  =========
</TABLE>













                 See accompanying notes to financial statements

<TABLE>
<CAPTION>


                            NATIONAL BEAUTY CORPORATION & SUBSIDIARIES
                             CONSOLIDATED BALANCE SHEETS (CONTINUED)
                            AS OF JUNE 30, 2001 AND DECEMBER 31, 2000

                                                                      (Unaudited)
          LIABILITIES AND STOCKHOLDERS' EQUITY                      June 30, 2001   Dec. 31, 2000
          ------------------------------------


<S>                                                                    <C>           <C>
CURRENT LIABILITIES
---------------------------------------------------------------------
Accounts payable and accrued expenses . . . . . . . . . . . . . . . .  $     2,230   $     2,230
Note payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . .        8,400           -0-
Current portion of capitalized lease obligation . . . . . . . . . . .        1,712         1,862
TOTAL CURRENT LIABILITIES . . . . . . . . . . . . . . . . . . . . . .       12,342         4,092

LONG-TERM DEBT
---------------------------------------------------------------------
Capitalized lease obligation. . . . . . . . . . . . . . . . . . . . .        1,665         2,765

STOCKHOLDERS' EQUITY
---------------------------------------------------------------------
Common stock ($.001 par value, 100,000,000 shares authorized; 72,361
and 58,425 issued and outstanding at June 30, 2001 and December 31,
2000, respectively) . . . . . . . . . . . . . . . . . . . . . . . . .           72            58
Convertible preferred stock ($.001 par value; 50,000,000 shares
authorized, 1,000,000 shares issued and outstanding). . . . . . . . .        1,000         1,000
Additional paid in capital. . . . . . . . . . . . . . . . . . . . . .    1,186,995     1,168,764
Retained deficit. . . . . . . . . . . . . . . . . . . . . . . . . . .   (1,124,198)   (1,027,286)
TOTAL STOCKHOLDERS' EQUITY. . . . . . . . . . . . . . . . . . . . . .       63,869       142,536
                                                                       ------------  ------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY. . . . . . . . . . . . . .  $    77,876   $   149,393
                                                                       ===========   ============
</TABLE>
















                 See accompanying notes to financial statements

<TABLE>
<CAPTION>


                     NATIONAL BEAUTY CORPORATION & SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
              FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2001 AND 2000

<S>                                    <C>        <C>         <C>         <C>
                               Three Months Ended June 30, Six Months Ended June 30,
                                         2001        2000        2001        2000
                                                              ----------  ----------
REVENUES:
-------------------------------------
Sales . . . . . . . . . . . . . . . .  $103,028   $  91,515   $ 190,315   $ 199,155
Cost of sales . . . . . . . . . . . .   (66,218)    (63,557)   (126,949)   (128,037)
GROSS PROFIT. . . . . . . . . . . . .    36,810      27,958      63,366      71,118
                                       ---------  ----------  ----------  ----------

EXPENSES:
-------------------------------------
Selling, general and administrative .    62,132     229,781     104,350     469,525
TOTAL EXPENSES. . . . . . . . . . . .    62,132     229,781     104,350     469,525
                                       ---------  ----------  ----------

OPERATING LOSS. . . . . . . . . . . .  $(25,322)  $(201,823)  $ (40,984)  $(398,407)

OTHER INCOME (EXPENSE):
-------------------------------------
Unrealized loss on trading securities   (25,908)        -0-     (55,408)        -0-
Interest expense. . . . . . . . . . .      (260)       (260)       (520)       (520)

NET INCOME. . . . . . . . . . . . . .  $(51,490)  $(202,083)  $ (96,912)  $(398,927)

  Net income per share -
  basic and fully diluted . . . . . .  $  (0.76)  $   (3.07)  $   (1.53)  $   (6.07)
  Weighted average shares*. . . . . .    67,824      65,810      63,287      65,675
                                       =========  ==========  ==========  ==========
</TABLE>


*Includes  retroactive  adjustment  for  1  for 200 reverse stock split effected
during  2001
**  Less  than  $.01












                 See accompanying notes to financial statements

<TABLE>
<CAPTION>


                             NATIONAL BEAUTY CORPORATION & SUBSIDIARIES
                          CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                           FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000

<S>                                                                            <C>        <C>
                                                                                 2001        2000
CASH FLOWS FROM OPERATING ACTIVITIES:
-----------------------------------------------------------------------------
Net loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $(96,912)  $(398,927)
Adjustments to reconcile net loss to net cash provided by (used in) operating
activities:
Depreciation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     1,892       1,900
Common stock issued for services. . . . . . . . . . . . . . . . . . . . . . .    18,245     103,818
Unrealized loss on trading securities . . . . . . . . . . . . . . . . . . . .    55,408         -0-
(Increase) decrease in operating assets:
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      (245)     (1,200)
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      (523)       (445)
Prepaid expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      (370)    174,711
Deposits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    (4,100)        -0-
Increase (decrease) in accounts payable and accrued expenses. . . . . . . . .       -0-        (400)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES . . . . . . . . . . . . .   (26,605)   (120,543)
                                                                               ---------  ----------

CASH FLOWS FROM INVESTING ACTIVITIES:
-----------------------------------------------------------------------------
Expenditures for leaseholds and equipment . . . . . . . . . . . . . . . . . .    (4,395)     (1,566)
NET CASH USED IN INVESTING ACTIVITIES . . . . . . . . . . . . . . . . . . . .    (4,395)     (1,566)
                                                                                          ----------

CASH FLOWS FROM FINANCING ACTIVITIES:
-----------------------------------------------------------------------------
Common stock issuances. . . . . . . . . . . . . . . . . . . . . . . . . . . .       -0-     151,230
Repayment of shareholder loan receivable. . . . . . . . . . . . . . . . . . .     6,013         -0-
Principal repayments of note payable. . . . . . . . . . . . . . . . . . . . .    (6,600)
Principal repayments under capitalized lease. . . . . . . . . . . . . . . . .    (1,250)     (1,250)
NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES. . . . . . . . . . . . . . .    (1,837)    149,980

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS. . . . . . . . . . . . .   (32,837)     27,871

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

END OF THE PERIOD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 23,354   $ 139,299

SUPPLEMENTARY CASH FLOW INFORMATION OF NON-CASH FINANCING:
-----------------------------------------------------------------------------
Common stock issued for services. . . . . . . . . . . . . . . . . . . . . . .  $ 18,245   $  15,468
Assumption of note payable in connection with assets acquisition. . . . . . .  $ 15,000   $  15,000
                                                                               =========  ==========
</TABLE>



                 See accompanying notes to financial statements


                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                   NATIONAL BEAUTY CORPORATION & SUBSIDIARIES
                            June 30, 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 June
30,  2001,  the  results of operations for the three and six month periods ended
June  30,  2001  and 2000, and cash flows for the six months ended June 30, 2001
and  2000.  The  results for the period ended June 30, 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        Six          Six
                           Months  Ended  Months Ended Months Ended Months Ended
BASIC & FULLY  DILUTED*    June 30, 2001 June 30, 2000 June 30,2001 June 30,2001
--------------------------------------------------------------------------------
Net Loss                    $   (51,490) $ (202,083)   $  (96,912) $   (398,927)

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

Net  Loss                   $   (51,490)$  (202,083)   $  (96,912) $   (398,927)
Weighted  average  number
of  common  shares**           67,824        65,810        63,287        65,675
                            ----------------------------------------------------

Basic  &  Fully  Diluted*
loss  per  share            $     (.76) $    (3.07)    $    (1.53) $     (6.07)
                            ====================================================


*  The  Company  had  no  common stock equivalents during the periods presented.
**  Includes  retroactive  adjustment  for  1  for  200  reverse  stock  split.

NOTE  3  -  OPERATING  LEASE

The  Company  maintains  two  non-cancelable  operating  leases  as follows: (1)
approximately  1,700  square  feet  of  administrative  space locate in Tamarac,
Florida  for $1,680 per month, and (2) approximately 1,100 square feet of retail
salon  space  located  in  Boca  Raton, Florida, which was leased by Beautyworks
U.S.A.,  Inc.  for  $3,016  per month. The leases expire in August 2002 and June
2004,  respectively  and  have  options  for  an  additional  five-year tenancy.


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

In  connection  with  the  Safe  harbor  Provisions  of  the  Private Securities
Litigation  Reform Act of 1995 (the "Reform Act"), National Beauty Corp, Inc. is
hereby  providing cautionary statements identifying important factors that could
cause  the Company's actual results to differ materially from those projected in
forward  looking  statements (as such term is defined in the Reform Act) made in
this  quarterly  Report  on Form 10-QSB. Any statements that express, or involve
discussions  as  to,  expectations,  beliefs,  plans, objectives, assumptions or
future events or performance (often, but not always, through the use of words or
phrases  such  as  "likely will result," "are expected to," "will continue," "is
anticipated,"  "estimated,""intends,"  "plans"  and  "projection")  are  not
historical facts and may be forward looking statements and involve estimates and
uncertainties  which  could cause actual results to differ materially from those
expresses  in  the  forward looking statements. Accordingly, any such statements
are  qualified  in  their  entirety by reference to, and are accompanied by, the
following  key  factors  that  have a direct bearing on the Company's results of
operations:  the  absence  of  contracts  with  customers  or  suppliers and the
Company's  ability  to  maintain  and  develop  relationships with customers and
suppliers;  the  Company's ability to successfully integrate acquired businesses
or  new brands into the Company; the impact of competitive products and pricing;
supply constraints or difficulties; changes in the retail and beauty industries;
the  retention  and  availability  of  key  personnel;  and general economic and
business  conditions.

The  Company  cautions  that  the  factors  described  herein could cause actual
results  to  differ  materially  from  those  expressed  in  any forward-looking
statements of the Company and that the investors should not place undue reliance
on  any  such forward-looking statements. Further, any forward-looking statement
speaks  only  as  of  the  date on which such statement is made, and the Company
undertakes  no  obligation  to  update  any forward-looking statement to reflect
events  or  circumstances  after  the date on which such statement is made or to
reflect  the  occurrence  of  unanticipated  events  or  circumstances.

New  factors  emerge  from  time  to time, and it is possible for the Company to
predict  all  of  such factors. Further, the Company cannot assess the impact of
each  such  factor on the Company's results of operations or the extent to which
any  factor,  or  combination  of  factors,  may  cause actual results to differ
materially  from  those  contained  in  any  forward-looking  statements.

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

NATIONAL  BEAUTY  CORPORATION  (The  'Company') is made up of three wholly owned
subsidiaries:  BeautyWorks  U.S.A.,  Inc.;  BeautyMerchant,  Inc.;  and Cleaning
Express  U.S.A.,  Inc.  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 that can assist even the most unique of
consumer  needs.

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.


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.

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.     Monitor  the  competition.
8.     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 administrative staff is projected to
add  2-5  new  employees during the next 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.

Recent  Acquisition

During  the  second  quarter  of 2001, the Company acquired a full service salon
located  in  Boca  Raton. The salon currently employs approximately nine workers
and  offer  hair,  nails  and  skin  treatments  to local customers. The Company
expects  that  this  will  bring  an additional $250,000 to $300,000 in revenues
within  the first year of operations. This is the first acquisition in the salon
'roll-up'  strategy  initiated  by the Company. The Company expects at least two
more  acquisitions  during  the  year  2001.

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 include
home cleaning services.  Through its emphasis on budget pricing, the Company has
developed  a  market  in  the  home  cleaning  industry.  The  Company currently
operates one office in Tamarac, Florida 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,  INC.BEAUTYMAX.COM,  INC.  The Company, through its wholly owned
subsidiary  BeautyMerchant,  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 serves as a management
consultant  for  beauty  salons.  During  his  time  as  a consultant, 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,  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.

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  recently  formed  an  acquisition  team consisting of trained
accountants and attorneys to assist in locating potential business acquisitions.
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 $(51,490), or $.76 per common share, for the three
months  ended  June  30, 2001, versus a net loss of $(202,083), or $3.07 for the
same  period  ended  June  30, 2000. The Company had a net loss of $(96,912), or
$1.53  per  common  share,  for the six months ended June 30, 2001, versus a net
loss  of $(398,927), or $6.07 for the same period ended June 30, 2000.The change
in  net loss for both periods were primarily due to a decrease in administrative
expenses  relating  to  the  operation  and  marketing of the BeautyMerchant.com
online  superstore.

Sales

Revenues  increased  $11,513  or 13% to $103,028 for the three months ended June
30,  2001  as  compared  with  $91,515 for the three months ended June 30, 2000.
Revenues decreased $8,840 or 4% to $190,315 during the six months ended June 30,
2001  as  compared  with $199,155 in the comparable period in 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 June
30,  2001  decreased  $167,649  to  $62,132.  In comparison with the three-month
period ended June 30, 2000, web development, advertising, professional expenses,
and  payroll  decreased $19,891, $41,501, $28,205, and 142,010, 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  June  30,  2001,  the  Company  had  cash  of $23,354 and working capital of
$31,869.  This compares with cash of $133,299 and working capital of $218,040 at
June 30, 2000. The decrease in working capital was due to a decrease in cash and
prepaid  expenses,  and  an  increase  in  notes  payable.

Net  cash used in operating activities was $26,605 for the six months ended June
30,  2001 as compared with net cash used in operating activities of $120,543 for
the  period  ended  June  30,  2000.  The  decrease  in  cash used was primarily
attributable  to  a  decrease  in  net  loss  for  the  period.

Net  cash  used in investing activities was $4,395 for the six months ended June
30,  2001  as  compared with cash used in investing activities of $1,566 for the
period  ended  June  30, 2000. Net cash used in investing activities during both
periods  were  from  fixed  asset  purchases  during  the  period.

Net  cash  used  in financing activities totaled $1,837 for the six months ended
June  30,  2001  as  compared  with net cash provided by financing activities of
$149,980  for  the  six  months  ended  June  30, 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

The Company's Board of Directors declared a 1 for 200 reverse stock split during
the  period.  Authorized  shares  and  par value per share remain unchanged. The
capitalization  in  the accompanying financial statements retroactively reflects
these  changes.

Item  3.  Defaults  Upon  Senior  Securities

None.

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

None.

Item  5.  Other  Information

None.

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:  August  9,  2001                  __________________________
                                        /S/Michael  J.  Bongiovanni
                                        Chief  Financial  Officer