<PAGE>

                         SECURITIES AND EXCHANGE COMMISSION

                               WASHINGTON, DC  20549

                                    FORM 10-Q/A

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

                    For the quarterly period ended JULY 31, 1999

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

                        Commission File Number 0-20035



                               NATURAL WONDERS, INC.
               (Exact name of Registrant as specified in its charter)

              DELAWARE                                   77-0141610
     (State or other jurisdiction of         (IRS Employer Identification No.)
     incorporation or organization)

                 4209 TECHNOLOGY DRIVE, FREMONT, CALIFORNIA  94538
                      (Address of principal executive offices)
                                     (Zip code)

                                    510-252-9600
                (Registrant's telephone number, including area code)

     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
                   -----


Common stock outstanding as of August 27, 1999:  7,865,103  shares of common
stock.


                                      1 of 12
<PAGE>

                               NATURAL WONDERS, INC.
                                       INDEX
<TABLE>
<CAPTION>

                                                                                Page
                                                                               Number
<S>       <C>                                                                  <C>
PART I.   FINANCIAL INFORMATION

ITEM 1.   Financial Statements (Unaudited)

          Condensed Statements of Operations                                    3
          Quarters and six months ended July 31, 1999 and August 1, 1998

          Condensed Balance Sheets                                              4
          July 31, 1999, January 30, 1999 and August 1, 1998

          Condensed Statements of Cash Flows                                    5
          Six months ended July 31, 1999 and August 1, 1998

          Notes to Condensed Financial Statements                               6 - 7

ITEM 2.   Management's Discussion and Analysis of                               7 - 10
          Financial Condition and Results of Operations

PART II.  OTHER INFORMATION                                                     11

ITEM 1.   Legal Proceedings - None

ITEM 2.   Changes in Securities - None

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

          SIGNATURE                                                             12
</TABLE>

                                       2 of 12
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                               NATURAL WONDERS, INC.
                         CONDENSED STATEMENTS OF OPERATIONS
                      (In thousands, except per share amounts)
                                    (Unaudited)

<TABLE>
<CAPTION>
                                                       QUARTER ENDED                SIX MONTHES ENDED
                                                 --------------------------    --------------------------
                                                   JULY 31,      AUGUST 1,        JULY 31,     AUGUST 1,
                                                     1999           1998           1999           1998
                                                 -----------    -----------    -----------    -----------
<S>                                              <C>            <C>            <C>            <C>
Net sales                                        $    25,415    $    27,443    $   46,967     $   50,708
Cost of goods sold and
  store occupancy expenses                            20,831         19,961        39,781         39,398
                                                 -----------    -----------    ----------     ----------
     Gross margin                                      4,584          7,482         7,186         11,310
Selling, general & administrative expenses            10,833          9,942        20,446         20,991
                                                 -----------    -----------    ----------     ----------
     Operating loss                                   (6,249)        (2,460)      (13,260)        (9,681)

Interest expense                                          35             57            39            125
Interest income and other, net                             0             26            98             52
                                                 -----------    -----------    ----------     ----------
     Loss before taxes                                (6,284)        (2,491)      (13,201)        (9,754)
Income tax benefit                                     2,325            922         4,885          3,609
                                                 -----------    -----------    ----------     ----------
     Net loss                                    $    (3,959)   $    (1,569)   $   (8,316)    $   (6,145)
                                                 -----------    -----------    ----------     ----------
                                                 -----------    -----------    ----------     ----------

Net loss per common share basic and diluted:     $     (0.50)   $     (0.19)   $    (1.05)    $    (0.76)

Weighted average common shares outstanding
basic and diluted:                                     7,928          8,084         7,940          8,066

Stores open at end of period                             177            175           177            175
</TABLE>
                         See notes to financial statements

                                      3 of 12
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                               NATURAL WONDERS, INC.
                              CONDENSED BALANCE SHEETS
                                   (In thousands)
                                    (Unaudited)

<TABLE>
<CAPTION>
                                                              JULY 31,                 JANUARY 30,           AUGUST 1,
                                                                1999                    1999                    1998
                                                       --------------------    --------------------    --------------------
<S>                                                    <C>                     <C>                     <C>
                            ASSETS
Current Assets:
      Cash and cash equivalents                        $                233    $              4,841    $                298
      Short-term investments                                              0                   7,380                       0
      Merchandise inventories                                        22,242                  22,707                  26,263
      Prepaid income taxes                                            5,006                   1,403                   3,639
      Prepaid expenses and other current assets                       4,583                   4,318                   5,426
                                                       --------------------    --------------------    --------------------
               Total current assets                                  32,064                  40,649                  35,626
Property and Equipment:
      Leasehold improvements                                         29,976                  30,077                  30,103
      Property and equipment under capital lease                          0                       0                   4,993
      Furniture, fixtures and equipment                              31,031                  34,106                  29,080
                                                       --------------------    --------------------    --------------------
                                                                     61,007                  64,183                  64,176
      Less accumulated depreciation and amortization                (34,491)                (37,510)                (35,493)
                                                       --------------------    --------------------    --------------------
                                                                     26,516                  26,673                  28,683
Other Assets                                                          3,497                   3,526                   2,217
                                                       --------------------    --------------------    --------------------
Total Assets                                           $             62,077    $             70,848    $             66,526
                                                       --------------------    --------------------    --------------------
                                                       --------------------    --------------------    --------------------



              LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
      Trade accounts payable                           $              5,362    $              8,500    $              3,979
      Accrued compensation and related costs                          2,275                   2,300                   2,052
      Accrued liabilities                                             2,071                   3,037                   3,326
      Short-term borrowings                                           4,219                       0                   2,650
      Income taxes payable                                                0                       0                     121
      Current portion of capital lease obligations                        0                       0                     672
      Current portion of long-term debt                                   0                       0                     373
                                                       --------------------    --------------------    --------------------
              Total current liabilities                              13,927                  13,837                  13,173
Capital Lease Obligations                                                 0                       0                      63
Long-Term Debt                                                            0                       0                     178
Deferred Rents                                                        3,340                   3,561                   3,691
Commitments and Contingencies
Stockholders' Equity:
      Common stock, par value $.0001; authorized
      17,000,000 shares; issued and outstanding
      7,868,703; 7,951,392; 8,058,289 shares                              1                       1                       1
      Capital in excess of par value                                 33,750                  34,073                  34,292
      Retained earnings                                              11,059                  19,376                  15,128
                                                       --------------------    --------------------    --------------------
              Total stockholders' equity                             44,810                  53,450                  49,421
                                                       --------------------    --------------------    --------------------
Total Liabilities and Stockholders' Equity             $             62,077    $             70,848    $             66,526
                                                       --------------------    --------------------    --------------------
                                                       --------------------    --------------------    --------------------
</TABLE>



                          See notes to financial statements

                                       4 of 12
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                               NATURAL WONDERS, INC.
                         CONDENSED STATEMENTS OF CASH FLOWS
                               (Dollars in thousands)
                                    (Unaudited)

<TABLE>
<CAPTION>
                                                                          SIX MONTHS ENDED
                                                                     -----------------------------
                                                                     JULY 31, 1999  AUGUST 1, 1998
                                                                     -------------  --------------
<S>                                                                  <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net Loss                                                           $    (8,316)   $    (6,145)
  Adjustments to reconcile net loss to
  net cash used in operating activities:
     Depreciation and amortization                                         3,575          3,419
     Loss on disposition of asset                                             72            183
     Change in operating assets and liabilities:
       Merchandise inventories                                               465         (3,079)
       Prepaid expenses and other assets                                  (3,839)        (3,722)
       Trade accounts payable                                             (3,138)        (4,018)
       Accrued compensation and related costs                                (25)          (772)
       Accrued liabilities                                                  (966)          (310)
       Income tax payable                                                      0         (1,737)
       Deferred rent                                                        (222)          (114)
                                                                     -----------    -----------
       Net cash used in operating activities                             (12,394)       (16,295)

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchases of short-term investments                                          0         (6,902)
  Sales of short-term investments                                          7,380         20,300
  Proceeds from sale of equipment                                              0              0
  Purchases of property and equipment                                     (3,491)        (3,440)
  Business acquisition                                                         0              0
                                                                     -----------    -----------
       Net cash provided by investing activities                           3,889          9,958

CASH FLOWS FROM FINANCING ACTIVITIES:
  Principal payments on capital lease obligations                              0           (592)
  Principal payments on long-term debt                                         0         (1,538)
  Net borrowing on line of credit                                          4,219          2,650
  Purchase of treasury stock                                                (351)          (532)
  Issuance of common stock under employee stock purchase program              29             39
  Exercise of stock options and warrants                                       0            257
                                                                     -----------    -----------
       Net cash provided by financing activities                           3,897            284

NET DECREASE IN CASH AND CASH EQUIVALENTS                                 (4,608)        (6,053)

CASH AND CASH EQUIVALENTS
  Beginning of period                                                      4,841          6,351
                                                                     -----------    -----------
  End of period                                                      $       233    $       298
                                                                     -----------    -----------
                                                                     -----------    -----------

CASH PAID DURING PERIOD:
  Interest                                                           $        39    $       129
  Income taxes                                                       $        69    $     1,737
</TABLE>
                         See notes to financial statements

                                      5 of 12
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                               NATURAL WONDERS, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

1.   The financial statements are unaudited and reflect all adjustments
     (consisting only of normal recurring adjustments) which, in the opinion of
     management, are necessary for a fair presentation of the financial
     position, results of operations, and cash flows for the periods presented.
     The results of operations for the interim periods presented are not
     necessarily indicative of the results to be expected for any full fiscal
     year.

     These financial statements should be read in conjunction with the audited
     financial statements and notes thereto included in the Company's 1998
     Annual Report to Stockholders and Form 10-K for the fiscal year ended
     January 30, 1999 as filed with the Securities and Exchange Commission.

2.   New Accounting Pronouncements:  SFAS No. 133, "Accounting for Derivative
     Instruments and Hedging Activities" will be effective for the Company, as
     delayed by SFAS No. 137, in June 2000. SFAS No. 133 established accounting
     and reporting standards for derivative instruments embedded in other
     contracts, and hedging activities.  It requires that an entity recognize
     all derivatives as either assets or liabilities in the statement of
     financial position and measure those instruments at fair value.  The
     Company has not yet evaluated the impact of SFAS No. 133 on its financial
     statements.

3.   The Company had a credit facility agreement with a commercial bank for the
     purpose of financing seasonal working capital needs. The total borrowings
     on the line of credit and the letters of credit could not exceed
     $23,000,000 during the increase period or $12,000,000 during the remainder
     of the term. The Company was out of compliance with the bank covenants as
     of May 1, 1999 and received a waiver valid through June 15, 1999. The
     Company entered into an amended and restated line effective June 15, 1999.
     The new line is for a term of three years, with a maximum credit line of
     $30,000,000, and is provided by the same commercial bank, together with an
     additional lender acting as administrative agent. The line provides for
     revolving advances up to the lesser of 60% of the value of eligible
     inventory, 80% of the net retail liquidation value of eligible inventory,
     or the maximum credit line. As of July 31, 1999, total availability under
     the line was $9,138,000.  The line includes up to $5,000,000 for the
     issuance of commercial and standby letters of credit. The line of credit
     must be fully repaid for a 30 day consecutive period between January 1 and
     February 15 each year. The Company has the option of choosing interest
     payable at a rate based on LIBOR plus 2.25% or a rate equal to the bank's
     prime rate. The agreement, contains restrictive covenants, which include
     maintaining certain minimum tangible net worth levels and requiring bank
     consent for the payment of dividends.  As of July 31, 1999, the Company was
     in compliance with these covenants.  The agreement also includes certain
     prepayment penalties.


                                      6 of 12

<PAGE>

                                      SIGNATURE

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.

Dated:  September 15, 1999
                                        NATURAL WONDERS, INC.
                                           (Registrant)



                                  /s/ Peter G. Hanelt
                                  --------------------------------------
                                  Peter G. Hanelt,
                                   Chief Executive Officer
                                   President
                                  Chief Financial Officer
                                  (Signing on behalf of the registrant and
                                  as Principal Accounting and Financial Officer)


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