SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

                                  FORM 10-Q

[X]                            QUARTERLY REPORT

                          -------------------------

                    Pursuant to Section 13 or 15(d) of the
                       Securities Exchange Act of 1934

                 For the quarterly period ended July 31, 1998



                        Commission file number 0-21869

                                 dELiA*s Inc.
            (Exact name of registrant as specified in its charter)

         Delaware                                    13-3914035
(State or other jurisdiction of           (I.R.S. Employer Identification No.)
incorporation or organization)

                 435 Hudson Street, New York, New York 10014
                    (Address of principal executive offices)
                                  (Zip Code)

                                (212) 807-9060
             (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 [ ]

      Number of shares of Common Stock  outstanding  as of September 10, 1998:
14,138,790


<PAGE>



   Certain statements contained herein, including, without limitation,
information appearing under Item 2, "Management's Discussion and Analysis of
Financial Condition and Results of Operations," are forward-looking statements
(within the meaning of Section 27A of the Securities Act of 1933, as amended
(the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934,
as amended (the "Exchange Act")). Forward-looking statements involve a number of
risks and uncertainties including, but not limited to, general economic
conditions, increases in materials, printing, paper, postage, shipping and labor
costs, timing of catalog mailings, customer response rates, levels of
competition and other factors outside the control of the Company. These factors,
and other factors that appear with the forward-looking statements, or in the
Company's other Securities and Exchange Commission filings, including its Annual
Report on Form 10-K for the year ended January 31, 1998, could affect the
Company's actual results and could cause the Company's actual results to differ
materially from those expressed in any forward-looking statements made by, or on
behalf of, the Company herein.

   All references in this Report to a particular fiscal year refer to the year
ended January 31 following the particular year (e.g. "fiscal 1998" refers to the
fiscal year ending January 31, 1999.)



                                     PART I
                        FINANCIAL INFORMATION (Unaudited)

  Item 1. Condensed Consolidated Financial Statements


                                       2
<PAGE>


                        dELiA*s Inc. and Subsidiaries

                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                (in thousands)

<TABLE>
<CAPTION>
                                                       July 31, 1998 January 31, 1998
                                                       ------------------------------
                                                       (Unaudited)    *
                                    ASSETS
<S>                                                     <C>         <C>
CURRENT ASSETS
    Cash and cash equivalents.........................   $4,603      $4,485
    Short-term investments............................   12,987      37,075
    Merchandise inventories ..........................   20,247      11,233
    Prepaid expenses and other current assets ........    8,681       4,020
    Deferred taxes ...................................    1,100       1,100
                                                       --------   ---------
      Total current assets............................   47,618      57,913
PROPERTY AND EQUIPMENT--Net ..........................   10,017       6,222
GOODWILL AND OTHER ASSETS ............................   19,712         437
                                                       --------   ---------
TOTAL ASSETS .........................................  $77,347     $64,572
                                                       ========     =======

                     LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
    Accounts payable, accrued expenses and other
     current liabilities .............................  $17,565     $19,849
    Current portion of long-term debt and capital
     leases ..........................................       89         105
                                                       --------   ---------
      Total current liabilities ......................   17,654      19,954
DEFERRED CREDITS .....................................      365         310
LONG-TERM DEBT AND OBLIGATIONS UNDER CAPITAL LEASES         111         164
COMMITMENTS AND CONTINGENCIES (NOTE 6)

STOCKHOLDERS' EQUITY..................................   59,217      44,144
                                                       --------   ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ...........  $77,347     $64,572
                                                       ========   =========
</TABLE>

* Condensed from audited financial statements

       See Notes to Unaudited Condensed Consolidated Financial Statements


                                       3
<PAGE>

                          dELiA*s Inc. and Subsidiaries

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                      (in thousands, except per share data)

<TABLE>
<CAPTION>
                                                           Three Months
                                                          Ended July 31,
                                                         ----------------
                                                         1998        1997
                                                         ----        ----
                                                            (Unaudited)
<S>                                                     <C>         <C>    
NET SALES ............................................  $26,451     $21,086
COST OF SALES.........................................   13,712      10,678
                                                        -------     -------
GROSS PROFIT..........................................   12,739      10,408
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES..........   13,499      10,148
INTEREST INCOME, NET..................................      300         268
                                                        -------     -------
INCOME (LOSS) BEFORE INCOME TAXES.....................     (460)        528
PROVISION (BENEFIT) FOR INCOME TAXES..................     (317)        141
                                                        -------     -------
NET INCOME (LOSS).....................................  $  (143)    $   387
                                                        =======     =======
BASIC AND DILUTED NET INCOME (LOSS) PER SHARE.........  $ (0.01)    $  0.03
                                                        =======     =======
SHARES USED IN THE CALCULATION OF BASIC NET
    INCOME (LOSS) PER SHARE...........................   13,498      12,866
                                                        =======     =======
SHARES USED IN THE CALCULATION OF DILUTED NET
    INCOME (LOSS) PER SHARE...........................   13,498      13,003
                                                        =======     =======
</TABLE>


<TABLE>
<CAPTION>
                                                            Six Months
                                                          Ended July 31,
                                                         ----------------
                                                         1998        1997
                                                         ----        ----
                                                            (Unaudited)
<S>                                                     <C>         <C>    
NET SALES ............................................  $57,645     $38,783
COST OF SALES.........................................   27,935      19,956
                                                        -------     -------
GROSS PROFIT..........................................   29,710      18,827
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES..........   27,591      18,196
INTEREST INCOME, NET..................................      641         481
                                                        -------     -------
INCOME BEFORE INCOME TAXES............................    2,760       1,112
PROVISION FOR INCOME TAXES............................      903         403
                                                        -------     -------
NET INCOME............................................  $ 1,857     $   709
                                                        =======     =======
BASIC AND DILUTED NET INCOME PER SHARE................ $   0.14     $  0.06
                                                        =======     =======
SHARES USED IN THE CALCULATION OF BASIC NET
    INCOME PER SHARE..................................   13,410      12,577
                                                        =======     =======
SHARES USED IN THE CALCULATION OF DILUTED NET
    INCOME PER SHARE..................................   13,618      12,695
                                                        =======     =======
</TABLE>








       See Notes to Unaudited Condensed Consolidated Financial Statements


                                       4
<PAGE>

                        dELiA*s Inc. and Subsidiaries

               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (in thousands)

<TABLE>
<CAPTION>
                                                                                   Six Months
                                                                                  Ended July 31,
                                                                                 ----------------
                                                                                 1998        1997
                                                                                 ----        ----
                                                                                    (Unaudited)
<S>                                                                             <C>         <C>
CASH FLOWS USED IN OPERATING ACTIVITIES:
    Net income ............................................................     $ 1,857     $   709
    Adjustments to reconcile net income to net cash used in operating
     activities
     Depreciation and amortization ........................................         762         283
     Amortization of investments ..........................................         136          --
     Compensation expense related to issuance of restricted stock and
      stock appreciation rights. ..........................................          44          54
     Changes in operating assets and liabilities:
          Merchandise inventories .........................................      (6,753)     (3,675)
          Prepaid expenses and other current assets .......................      (4,650)     (2,168)
          Deferred taxes ..................................................          --        (283)
          Other assets ....................................................         (24)        (54)
          Current liabilities .............................................      (2,714)      2,649
          Deferred credits ................................................          55          94
                                                                                -------     -------
    Net cash used in operating activities .................................     (11,287)     (2,391)
                                                                                =======     =======
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES:
    Purchase of Screeem! Business, net of cash acquired                         (10,303)         --
    Capital expenditures ..................................................      (2,257)     (2,240)
    Purchases of investment securities
       Held-to-maturity ...................................................          --     (22,808)
       Available for sale .................................................     (43,281)         --
    Proceeds from the maturity of held-to-maturity investment securities         30,024          --
    Proceeds from the sale of available-for-sale investment securities           37,209          --
                                                                                -------     -------
Net cash provided by (used in) investing activities .......................      11,392     (25,048)
                                                                                =======     =======
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES:
    Net proceeds from issuance of common stock ............................          --      19,945
    Exercise of stock options .............................................          82          --
    Net proceeds under line of credit agreement ...........................          --         796
    Proceeds from issuance of long-term debt ..............................          --         168
    Principal payments of long-term debt and capital lease obligations              (69)         --
                                                                                -------     -------
Net cash provided by financing activities .................................          13      20,909
                                                                                =======     =======
INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS ............................         118      (6,530)
CASH & CASH EQUIVALENTS--BEGINNING OF PERIOD ..............................       4,485      21,717
                                                                                -------     -------
CASH & CASH EQUIVALENTS--END OF PERIOD ....................................     $ 4,603     $15,187
                                                                                =======     =======
SUPPLEMENTARY CASH FLOW INFORMATION:
    Income taxes paid .....................................................     $ 3,629     $ 1,076
                                                                                =======     =======
    Interest paid .........................................................     $    13     $    82
                                                                                =======     =======
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING ACTIVITY:
    Issuance of equity securities in connection with the Screeem! Business
    acquisition (Note 1)
</TABLE>
       See Notes to Unaudited Condensed Consolidated Financial Statements

                                       5
<PAGE>

                          dELiA*s Inc. and Subsidiaries

         NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1.  Business

   dELiA*s Inc. (together with its consolidated subsidiaries, the "Company") is
a teen-focused marketer of casual apparel, accessories, cosmetics, home
furnishings and soccer merchandise. Through dELiA*s catalog and web site which
target girls and young women between the ages of 10 and 24 (an age group known
as "Generation Y"), the Company believes it is the leading direct marketer of
casual apparel, related accessories and cosmetics distributing a print and
on-line catalog to Generation Y. Through its TSI Soccer catalog, retail stores
and web site, the Company is a leading direct marketer and retailer of specialty
soccer merchandise to Generation Y boys and girls. The Company maintains a
corporate headquarters, telemarketing and customer service group in New York,
New York, additional telemarketing and corporate facilities in Durham, North
Carolina and a fulfillment facility for processing merchandise in Hanover,
Pennsylvania. It also operates two dELiA*s retail outlet stores.

   In July 1998, the Company, through two wholly-owned subsidiaries, acquired
assets located in 26 retail stores operated under the Screeem! and Jean Country
names, as well as the leases for such stores, from American Retail Enterprises,
L.P. ("ARE") and certain affiliates of ARE. The Company, through its
subsidiaries, also acquired the Screeem!, Jean Country and American Rocket
trademarks (together with the acquired retail assets and leases, the "Screeem!
Business"). Through these retail stores, the Company offers progressive,
fashion-forward unisex branded apparel to Generation Y boys and girls in a
dynamic shopping experience, featuring live DJs, fashion models and promotional
appearances and events. The purchase price for the acquisition consisted of
$10,025,000 in cash and 812,501 shares of dELiA*s Inc. common stock ("Common
Stock"). The acquisition, which was completed pursuant to an Asset Purchase
Agreement dated June 1, 1998, as amended (the "Screeem! Asset Purchase
Agreement"), has been accounted for as a purchase. Accordingly, the operating
results of the Screem! Business have been included in the Company's condensed
consolidated financial statements since the date of acquisition. The excess of
the aggregate purchase price over the fair market value of net assets acquired
was allocated to goodwill based upon preliminary estimates of fair value and is
being amortized over thirty years. The Company does not expect the final
purchase allocation to differ significantly from the preliminary purchase price
recorded. On a pro forma basis assuming the acquisition had occurred on February
1, 1997, net sales, net income and earnings per share adjusted for interest and
goodwill amortization expenses would have been $45.0 million, $182,000 and
$0.01, respectively, for the six months ended July 31, 1997 and $64.3 million,
$1.5 million and $0.10, respectively, for the six months ended July 31, 1998.
These results are presented for informational purposes only and do not
necessarily represent results which would have occurred nor are they indicative
of future results of the combined operations.

   The Company is subject to seasonal fluctuations in its merchandise sales and
results of operations. The Company expects its sales operating results generally
to be lower in the first and second quarters than in the third and fourth
quarters (which include the majority of the back-to-school season and the
holiday season) of each fiscal year.

2.  Summary of Significant Accounting Policies and Basis of Presentation

   a. Principles of Consolidation--The condensed consolidated financial
statements include the accounts of dELiA*s Inc. and subsidiaries, all of which
are wholly owned. All significant intercompany balances and transactions have
been eliminated in consolidation.

   b. Unaudited Interim Financial Statements--The accompanying unaudited
condensed consolidated financial statements have been prepared in accordance
with the requirements for Form 10-Q and in accordance with generally accepted
accounting principles for interim financial reporting. In the opinion of
management, the accompanying condensed consolidated financial statements are
presented on a basis consistent with the audited consolidated financial
statements and reflect all adjustments (consisting of normal recurring items)
necessary for a fair presentation of results for the interim periods presented.
The financial statements and footnote disclosures should be read in conjunction
with the Company's January 31, 1998 audited consolidated financial statements
and the notes thereto, which are included in the Company's Annual Report on Form
10-K for the year ended January 31, 1998, which was filed under the Securities
Exchange Act of 1934. Results for the interim periods are not necessarily
indicative of the results to be expected for the year.

                                       6
<PAGE>


                          dELiA*s Inc. and Subsidiaries

   NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)


   c. Reclassifications--Certain amounts have been reclassified to conform to 
the July 31, 1998 presentation.

   d. Recent Accounting Pronouncements--In June 1997, the Financial Accounting
Standards Board ("FASB") issued SFAS No. 130, "Reporting Comprehensive Income,"
which is effective for fiscal years beginning after December 15, 1997. SFAS No.
130 establishes standards for reporting and display of comprehensive income. The
adoption of SFAS No. 130 as of February 1, 1998 did not have an effect on the
Company's financial statements or disclosure as the Company has no reconciling
items. Therefore net income and comprehensive income are the same.

   In June 1997, the FASB issued SFAS No. 131, "Disclosure About Segments of an
Enterprise and Related Information," which is effective for fiscal years
beginning after December 15, 1997. SFAS No. 131 requires that public companies
report certain information about operating segments in their annual financial
statements and in condensed financial statements of interim periods issued to
shareholders. This statement also requires that public companies report certain
information about their products and services, the geographic areas in which
they operate and their major customers. The Company is currently reviewing the
impact of this statement on its current level of disclosure.

   In February 1998, the FASB issued SFAS No. 132, "Employers' Disclosures about
Pensions and Other Postretirement Benefits" which is effective for fiscal years
beginning after December 15, 1997. SFAS No. 132 revises employers' disclosures
about pension and other postretirement benefit plans. It does not change the
measurement or recognition of those plans. This statement standardizes the
disclosure requirements for pension and other postretirement benefits to the
extent practicable, requires additional information on changes in the benefit
obligations and fair values of plan assets that will facilitate financial
analysis, and eliminates certain disclosures. The Company has determined that
the adoption of this new standard will not have a material effect on the
Company's disclosure for all periods presented.

   In June 1998, the FASB issued SFAS No. 133, "Accounting for Derivative
Instruments and Hedging Activities." SFAS No. 133, which is effective for fiscal
years beginning after June 15, 1999, requires the Company to recognize all
derivatives on the balance sheet at fair value. The Company has determined that
the adoption of this new standard will not have a material effect on the
Company's financial statements or disclosure for all periods presented.


                                       7
<PAGE>


                          dELiA*s Inc. and Subsidiaries

         NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Continued)


3.  Property and Equipment

   Major classes of property and equipment are as follows:

<TABLE>
<CAPTION>
                                         Estimated    July 31,     January 31,
                                       Useful Lives     1998          1998
                                      -------------  -----------   ----------- 
                                                     (Unaudited)
<S>                                   <C>            <C>           <C>        
Furniture, fixtures and equipment     5-10 years     $ 9,330,000   $ 5,444,000
Leasehold improvements...........     Term of lease    2,436,000     1,842,000
                                                     -----------   -----------
Total--at cost...................                     11,766,000     7,286,000
Less accumulated depreciation and
  amortization...................                      1,749,000     1,064,000
                                                     -----------   -----------
Total property and equipment--net                    $10,017,000   $ 6,222,000
                                                     ===========   ===========
</TABLE>


4.  Credit and Financing Agreements

   At July 31, 1998, the Company had a line of credit agreement with a bank
providing for short-term loans of up to $5.0 million subject to bank approval.
Borrowings under the agreement are secured by all assets of the Company except
for merchandise inventories and bear interest at the prime rate (8.5 percent at
July 31, 1998 and January 31, 1998). There were no funds borrowed under the
agreement during the six month period ended July 31, 1998 and the fiscal year
ended January 31, 1998. The Company is currently renegotiating this 
agreement.

   Outstanding letters of credit established to facilitate international
merchandise purchases at July 31, 1998 were $3,502,000.


5. Stock Options

   In the six month period ended July 31, 1998, options to purchase an aggregate
of 1,476,750 shares of Common Stock were granted to 117 employees of the
Company and its subsidiaries. These options will become exercisable over a
period of ten months to five years from the date of grant. The exercise price
per share of each such option is generally equal to the fair market value of the
Common Stock on the date of grant.


                                       8
<PAGE>


                          dELiA*s Inc. and Subsidiaries

         NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (Continued)


5.  Stock Options (cont'd.)

   A summary of the status of all plan and non-plan options to purchase shares
of Common Stock outstanding as of January 31, 1998 and July 31, 1998 follows:


<TABLE>
<CAPTION>
                                     Fiscal Year                   Six Months
                                 Ended January 31, 1998      Ended July 31, 1998
                                 ----------------------      -------------------
                                            Weighted                 Weighted
                                 Options Exercise Price   Options Exercise Price
                                 ------- --------------   ------- -------- -----
<S>                              <C>             <C>       <C>            <C>   
Outstanding at beginning of      383,750         $11.00    744,437        $14.96
period
    Granted                      362,937          19.13  1,476,750         16.60
    Exercised                    (2,250)          11.00     (7,375)        11.11
    Cancelled                         --             --    (25,500)        21.58
                                 -------                 ---------
Outstanding at end of period     744,437          14.96  2,188,312         16.58
                                 =======                 =========
Options exercisable
    At end of period             107,500          11.24    296,987         14.29
                                 =======                 =========
</TABLE>


   The Company applies APB No. 25 and related interpretations in accounting for
its stock option and purchase plans. Accordingly, no compensation expense has
been recognized for those options granted to employees in the six month period
ended July 31, 1998 and the year ended January 31, 1998.


   During 1998, the Company reduced the exercise price of approximately 24% of
the outstanding common stock options held by the Company's employees to the fair
market value per share as of the date of the reduction in price. The Company
repriced these employee stock options in an effort to retain employees at a time
when a significant percentage of employee stock options had exercise prices that
were above fair market value. The Company believes that stock options are a
valuable tool in compensating and retaining employees. The repriced options
maintain the same vesting and expiration terms. Executive officers and directors
were excluded from this repricing.


6.  Commitments and Contingencies

   Pursuant to the Screeem! Asset Purchase Agreement, in the event that the mean
of the intraday high and low bid prices for the Common Stock for the 20
consecutive trading days immediately preceding January 10, 2000 (the "18-Month
Price") is less than $18.00, the Company has agreed to issue that number of
additional shares of Common Stock that is equal to (i) the excess of (x) the
product of 208,334 shares (subject to adjustment) multiplied by $18.00 over (y)
the product of 208,334 shares multiplied by the greater of the 18-Month Price or
$10.00 divided by (ii) the 18-Month Price.


                                       9
<PAGE>


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

   The following discussion and analysis should be read in conjunction with the
Company's Condensed Consolidated Financial Statements and Notes thereto
included elsewhere in this Report.

Overview

   The Company is a teen-focused marketer of casual apparel, accessories,
cosmetics, home furnishings and soccer merchandise. Through dELiA*s catalog and
web site which target girls and young women between the ages of 10 and 24 (an
age group known as "Generation Y"), the Company believes it is the leading
direct marketer of casual apparel, related accessories and cosmetics
distributing a print and on-line catalog to Generation Y. Through its TSI Soccer
catalog, retail stores and web site, the Company is a leading direct marketer
and retailer of specialty soccer merchandise to Generation Y boys and girls. The
Company maintains a corporate headquarters, telemarketing and customer service
group in New York, New York, additional telemarketing and corporate facilities
in Durham, North Carolina and a fulfillment facility for processing merchandise
in Hanover, Pennsylvania. It also operates two dELiA*s retail outlet stores.

   On July 10, 1998, the Company, through two wholly-owned subsidiaries,
acquired assets located in 20 retail stores operated under the Screeem! and Jean
Country names, as well as the leases for such stores, from American Retail
Enterprises, L.P. ("ARE") and certain affiliates of ARE. The Company, through
its subsidiaries, acquired assets located in six additional Screeem! and Jean
Country stores, as well as the lease for those stores, in subsequent closings
held on July 17 and July 24, 1998. The Company, through its subsidiaries, also
acquired the Screeem!, Jean Country and American Rocket trademarks. The
acquisition was completed pursuant to an Asset Purchase Agreement dated June 1,
1998, as amended (the "Asset Purchase Agreement"). The purchase price for the
acquisition consisted of $10,025,000 in cash and 812,501 shares (the "Stock
Consideration") of dELiA*s Inc. common stock ("Common Stock").

   Pursuant to the Asset Purchase Agreement, the Company agreed to register the
Stock Consideration for resale under the Securities Act of 1933. The Company has
registered 604,167 shares of the Stock Consideration and is required to register
the remaining 208,334 shares by January 10, 2000.

   In addition, pursuant to the Asset Purchase Agreement, in the event that the
mean of the intraday high and low bid prices for the Common Stock for the 20
consecutive trading days immediately preceding January 10, 2000 (the "18-Month
Price") is less than $18.00, the Company has agreed to issue that number of
additional shares of Common Stock that is equal to (i) the excess of (x) the
product of 208,334 shares (subject to adjustment) multiplied by $18.00 over (y)
the product of 208,334 shares multiplied by the greater of the 18-Month Price or
$10.00 divided by (ii) the 18-Month Price.

   The acquired stores include 11 stores operating under the Screeem! name and
concept, as well as 15 stores currently operating under the Jean Country name
(together, the "Screeem! Business"), the majority of which the Company intends
to convert to Screeem! stores over the next 12 months. The Screeem! stores
provide a dynamic shopping experience, featuring live DJs, fashion models and
promotional appearances and events. Screeem! offers its customers progressive,
fashion-forward, unisex branded apparel focusing principally on denim and
fashion bottoms, t-shirts and tops, accessories, novelties and shoes. All of the
stores are located in major regional shopping malls in New York, New Jersey,
Connecticut, Pennsylvania and Massachusetts.

Results of Operations

   The following table sets forth, for the periods indicated, the percentage
relationship of certain items from the Company's statement of operations to net
sales. Any trends reflected by the following table may not be indicative of
future results.


                                       10
<PAGE>

<TABLE>
<CAPTION>
                                                             Three Months             Six Months        
                                                             Ended July 31,         Ended July 31,      
                                                            ----------------       ----------------     
                                                             1998      1997         1998      1997      
                                                             ----      ----         ----      ----      
<S>                                                         <C>          <C>       <C>          <C>     
Net sales ...............................................     100.0 %    100.0%      100.0%     100.0%  
Cost of sales............................................      51.8       50.7        48.4       51.4   
                                                            -------   --------     -------   --------   
Gross profit.............................................      48.2       49.3        51.6       48.6   
Selling, general and administrative expenses.............      51.0       48.1        47.9       46.9   
Interest income, net.....................................       1.1        1.3         1.1        1.2   
                                                            -------   --------     -------   --------   
Income before provision for income taxes.................      (1.7)       2.5         4.8        2.9   
Provision for income taxes...............................      (1.2)       0.7         1.6        1.0   
                                                            -------   --------     -------   --------   
Net income ..............................................      (0.5)%      1.8%        3.2%       1.9%  
                                                            =======   ========     =======   ========   
</TABLE>

Comparison of Three Months Ended July 31, 1998 and 1997

   Net Sales. Net sales increased approximately $5.4 million to $26.5 million in
the second quarter of fiscal 1998 from $21.1 million in the second quarter of
fiscal 1997. Sales results were driven by increased catalog circulation, strong
outlet store sales and the July Screeem! Business acquisition. The Company
distributed approximately the same number of catalogs in the second quarter of
fiscal 1998 as in the second quarter of fiscal 1997, although variances in the
timing of mailings render comparisons unmeaningful. Aggregate response rates
from catalogs distributed in the second quarter of fiscal 1998 declined relative
to catalogs distributed in the second quarter of fiscal 1997 as the Company (i)
broadened the distribution of its catalogs and increased its prospecting efforts
and (ii) mailed additional catalog editions to a large number of persons who had
received a prior edition of those catalogs earlier in the period. The Company
believes aggregate response rates will usually decline as it broadens the
distribution of its catalog and when it mails additional catalog editions within
the same fiscal period.

   Gross Margin. Gross margin decreased to 48.2% in the second quarter of fiscal
1998 from 49.3% in the second quarter of fiscal 1997. The decrease in gross
margin as a percentage of sales was due to a higher proportion merchandise sales
through the Company's sales circulars and outlet stores.

   Selling, General and Administrative Expenses. Selling, general and
administrative expenses increased approximately $3.4 million, to $13.5 million
in the second quarter of fiscal 1998 from $10.1 million in the second quarter of
fiscal 1997. Selling, general and administrative expenses increased as a
percentage of net sales from 48.1% in the second quarter fiscal 1997 to 51.0% in
the second quarter of fiscal 1998. The increase was due to greater spending on
dELiA*s catalog circulation coupled with lower response rates on catalogs
mailed, as well as increased expenses associated with the Company's retail
infrastructure development and the acquisition of the Screeem! and Jean Country
stores, offset by reversal or use of a $350,000 reserve previously established
in connection with the Company's acquisition of the TSI Soccer business.

Comparison of Six Months Ended July 31, 1998 and 1997

   Net Sales. Net sales increased approximately $18.8 million to $57.6 million
in the first six months of fiscal 1998 from $38.8 million in the first six
months of fiscal 1997. Sales results were driven by increased catalog
circulation, strong outlet store sales and the July Screeem! Business
acquisition. The Company distributed approximately 80% more catalogs (excluding
sales circulars) in the first six months of fiscal 1998 as in the first six
months of fiscal 1997. Aggregate response rates from catalogs distributed in the
first six months of fiscal 1998 declined relative to catalogs


                                       11
<PAGE>



distributed in the first six months of fiscal 1997 as the Company (i) broadened
the distribution of its catalogs and increased its prospecting efforts and (ii)
mailed additional catalog editions to a large number of persons who had received
a prior edition of those catalogs earlier in the period. The Company believes
aggregate response rates will usually decline when it broadens the distribution
of its catalog mails additional catalog editions within the same fiscal period.

   Gross Margin. Gross margin increased to 51.6% in the first six months of
fiscal 1998 from 48.6% in the first six months of fiscal 1997. The increase in
gross margin was due to a greater proportion in the earlier part of the period
of higher-margin apparel sales from the dELiA*s catalog in relation to
lower-margin soccer-related merchandise through the TSI soccer catalog as well
as lower markdowns and better recovery on discounted sales through the Company's
liquidation outlets. This increase was offset by a higher proposition of
merchandise sales through these liquidation channels.

   Selling, General and Administrative Expenses. Selling, general and
administrative expenses increased approximately $9.4 million, to $27.6 million
in the first six months of fiscal 1998 from $18.2 million in the first six
months of fiscal 1997. Selling, general and administrative expenses increased as
a percentage of net sales from 46.9% in the first six months of fiscal 1997 to
47.9% in the first six months of fiscal 1998. The increase was due to greater
spending on dELiA*s catalog circulation coupled with lower response rates on
catalogs mailed, as well as increased expenses associated with the Company's
retail infrastructure development and the acquisition of the Screeem! and Jean
Country stores.

   Interest Income, Net. Interest income, net, increased approximately $160,000
to $641,000 in the first six months of fiscal 1998 from $481,000 in the first
six months of fiscal 1997. The increase in interest income, net, was primarily
due to the Company's investment of the net proceeds from its 1997 follow-on
public offering of Common Stock, which proceeds were received in the second
quarter of fiscal 1997.


Selected Quarterly Results of Operations

   The following table sets forth certain unaudited statements of operations
data for the six quarters ended July 31, 1998, as well as such data expressed as
a percentage of the Company's total net sales for the periods indicated. This
data has been derived from unaudited financial statements that, in the opinion
of management, include all adjustments (consisting only of normal recurring
adjustments) necessary for fair presentation of such information when read in
conjunction with the Company's annual audited financial statements and notes
thereto.


                                       12
<PAGE>


<TABLE>
<CAPTION>

                         ---------------------------------------------------------------
                                                 Quarter Ended
                         ---------------------------------------------------------------
                           Fiscal 1998                        Fiscal 1997
                         -----------------   -------------------------------------------
                         July 31,   Apr. 30,   Jan. 31,   Oct. 31,   July 31,   Apr. 30,
                          1998       1998       1998       1997       1997       1997
                          ----       ----       ----       ----       ----       ----
                                              (in thous  ands)                 
<S>                      <C>        <C>        <C>        <C>        <C>        <C>    
Net sales.............   $26,451    $31,194    $42,909    $31,357    $21,086    $17,697
Cost of sales.........    13,712     14,223     21,397     16,514     10,678      9,278
                         -------    -------    -------    ------     --------   -------
Gross profit..........    12,739     16,971     21,512     14,843     10,408      8,419
Selling, general and                                                           
   administrative         
   expenses...........    13,499     14,092     17,007     12,684     10,148      8,048
Merger-related costs          --         --      1,614         --         --         --
Interest income, net..       300        341        382        338        268        213
                         -------    -------    -------    -------    -------    -------
Income (loss) before                                                           
 provision (benefit) for                                                      
 income taxes.........      (460)     3,220      3,273      2,497        528        584
Provision (benefit) for                                                       
 income taxes.........      (317)     1,220      1,183        870        141        262
                         -------    -------    -------    -------    -------    -------
Net income (loss) ....   $  (143)   $ 2,000    $ 2,090    $ 1,627    $    38    $   322
                         =======    =======    =======    =======    =======    =======
                                                                             
<CAPTION>
                                           Percentage of Net Sales
                         ---------------------------------------------------------------
<S>                        <C>        <C>       <C>        <C>        <C>        <C>    
Net sales.............     100.0%     100.0%     100.0%     100.0%     100.0%     100.0%
Cost of Sales.........      51.8       45.6       49.9       52.7       50.7       52.4
                         -------    -------    -------    -------    -------    -------
Gross profit..........      48.2       54.4       50.1       47.3       49.3       47.6
Selling, general and                                                            
    administrative          
    expenses..........      51.0       45.2       39.6       40.5       48.1       45.5
Merger-related costs..        --         --        3.8         --         --         --
Interest income, net..       1.1        1.1        0.9        1.1        1.3        1.2
                         -------    -------    -------    -------    -------    -------
Income (loss) before                                                            
 provision (benefit) for  
 income taxes.........      (1.7)      10.3        7.6        8.0        2.5        3.3
Provision (benefit) for
 income taxes.........      (1.2)       3.9        2.7        2.8        0.7        1.5
                         -------    -------    -------    -------    -------    -------
Net income (loss).....      (0.5)%      6.4%       4.9%       5.2%       1.8%       1.8%
                         =======    =======    =======    =======    =======    =======
</TABLE>                                                                      
                                            
   The Company is subject to seasonal fluctuations in its merchandise sales and
results of operations. The Company expects its net sales and results of
operations generally to be lower in the second quarter and higher in the fourth
quarter (which includes the holiday season) of each fiscal year. The Company's
quarterly results may fluctuate as a result of numerous factors, including the
timing, quantity and cost of catalog mailings, responses to those mailings, the
timing of sale circulars and liquidations, the timing of merchandise deliveries,
market acceptance of the Company's merchandise (including new merchandise
categories or products introduced), the mix of products sold, the hiring and
training of additional personnel, the timing of inventory writedowns, the
integration of acquisitions, the incurrence of other operating costs and factors
beyond the Company's control, such as general economic conditions and actions of
competitors. Accordingly, the results of operations in any quarter will not
necessarily be indicative of the results that may be achieved for a full fiscal
year or any future quarter.


Liquidity and Capital Resources

   Cash used in operations in the first six months of fiscal 1998 and 1997 was
$11.3 million and $2.4 million, respectively. The increase in cash used in
operations was due in part to earlier payment of certain liabilities, including
accounts payable due to inventory vendors and other vendors. The Company also
increased inventory levels at its TSI Soccer division in an efort to improve
fill rates as well as increasing inventory at dELiA*s in anticipation of greater
sales. In addition, the Company paid certain liabilities of its TSI Soccer
business earlier in fiscal 1998 than it did in fiscal 1997 in order to take
advantage of discounts.

   Cash provided by investing activities in the first six months of fiscal 1998
and cash used in investing in the first six months of fiscal 1997 was $11.4
million and $25.0 million, respectively, including the sale of short-term,
investment-grade investments in fiscal 1998 and the purchase of short-term,
investment-grade investments in fiscal 1997. The Company expects to make
additional capital expenditures of approximately $3.0 million to upgrade its
management information systems in fiscal 1998. The Company also anticipates
additional capital expenditures of at least $1.0 million in fiscal 1998 for
property, plant and equipment, including leasehold improvements, office
equipment and expenditures relating to the conversion of Jean Country


                                       13
<PAGE>

stores to Screeem! stores and the Company's warehouse and distribution
operations. See "--Results of Operations."

   The Company did not engage in any significant cash financing activities in
the first six months of fiscal 1998. Cash flows from financing activities in the
first six months of fiscal 1997 were $20.9 million as a result of a public
offering of common stock.

   Cash and cash equivalents increased by approximately $118,000 to $4.6 million
at July 31, 1998 from $4.5 million at January 31, 1998.

   The Company has a revolving line of credit for seasonal working capital,
collateralized by all of the Company's assets other than inventory. The maximum
amount available under the line of credit is $5.0 million. The interest rate on
the line of credit is the lending bank's prime rate (8.5% at July 31, 1998). The
Company has not drawn on this line. The Company is currently renegotiating this
line of credit. Outstanding letters of credit established to facilitate
international merchandise purchases at July 31, 1998 were $3,502,000.

   The Company believes that its cash on hand, together with cash generated by
operations, will be sufficient to meet its capital and operating requirements
through at least fiscal 1998. The Company's future capital requirements,
however, depend on numerous factors, including, without limitation, the success
of its marketing, sales and distribution efforts. The Company may choose to
borrow funds in fiscal 1999 in order to finance the opening of new stores. There
can be no assurance that such funds will be available to the Company on
favorable terms or at all.


Inflation

   The Company does not believe that inflation has had a material adverse effect
on net sales or results of operations. The Company has generally been able to
pass on increased costs related to inflation through increases in its prices to
customers.


Year 2000

   The Company recognizes that its operations may be negatively affected by Year
2000 software issues. The Company is heavily dependent upon complex computer
software and systems for all phases of its operations. Many existing computer
programs and systems use only two digits to identify a year in the date field.
These programs and systems were designed and developed without considering the
impact of the upcoming change in the century. If not corrected, many computer
applications could fail or create erroneous results by or at the Year 2000.
Accordingly, the Company has prepared a Year 2000 compliance program which
involves (i) identifying the material operating software and systems on which
the Company depends (whether used by the Company or by the Company's service
providers), (ii) obtaining written warranties or assurances from third party
software and systems vendors and service providers, (iii) monitoring the
compliance efforts of such vendors and service providers and (iv) testing its
material operating software and systems.

   All of the Company's material operating software and systems, including
telecommunications and warehouse systems, in addition to information technology
systems, were developed by and are supported by third party vendors. Each of the
third party vendors of the Company's mission-critical operating software have
provided written warranties or assurances to the Company that such software will
not be affected by the change in the century. The majority of the third party
vendors of the Company's other material operating software and systems have also
provided such warranties or assurances that such software and systems will be
compliant by December 31, 1998. The Company expects to begin performing tests of
all its material operating software and systems to verify the assurances given
by these third party vendors and ensure Year 2000 compliance later in fiscal
1998. However, there can be no assurance that all of the Company's material
operating software and systems will be in Year 2000 compliance.

   In addition to the operating systems and software the Company uses directly,
the Company's operations are also dependent upon the performance of operating
software and systems used by its


                                       14
<PAGE>

significant service providers, including providers of financial,
telecommunications and parcel delivery services. The Company has contacted each
of its significant service providers and has obtained written assurances from
the majority of such providers that the providers' relevant operating software
and systems are in Year 2000 compliance or will be by December 31, 1998. The
Company is monitoring the status of all its significant service providers' Year
2000 compliance efforts to minimize the risk of any material adverse effect on
the Company's operations resulting from compliance failures. However, there can
be no assurance that the Company's service providers have, or will have,
operating software and systems that are in Year 2000 compliance.

   A software or systems Year 2000 compliance failure with respect to the
Company's internal systems and software, or that of third party service
providers, could prevent the Company from being able to process or fulfill
orders from its customers, or could disrupt the Company's financial and
management controls and reporting systems. Any such failure, if not quickly
remedied, would have a material adverse effect on the Company. Therefore, the
Company is developing contingency plans with respect to such systems and
software.

   In addition, most purchases of merchandise from the Company are made with
credit cards, and the Company's operations may be materially adversely affected
to the extent its customers are unable to use their credit cards due to Year
2000 issues that are not rectified by the customers' credit card vendors.

   The Company presently believes that the cost of its Year 2000 program will
not have a material adverse effect on the Company, however, given the Company's
dependence on third party software and system vendors and service providers and
on its customers' vendors, there can be no assurance to that effect.


Recent Accounting Pronouncements

   In June 1997, the FASB issued SFAS No. 130, "Reporting Comprehensive Income,"
which is effective for fiscal years beginning after December 15, 1997. SFAS No.
130 establishes standards for reporting and display of comprehensive income. The
adoption of SFAS No. 130 as of February 1, 1998 did not have an effect on the
Company's financial statements or disclosure as the Company has no reconciling
items. Therefore net income and comprehensive income are the same.

   In June 1997, the FASB issued SFAS No. 131, "Disclosure About Segments of an
Enterprise and Related Information," which is effective for fiscal years
beginning after December 15, 1997. SFAS No. 131 requires that public companies
report certain information about operating segments in their annual financial
statements and in condensed financial statements of interim periods issued to
shareholders. This statement also requires that public companies report certain
information about their products and services, the geographic areas in which
they operate and their major customers. The Company is currently reviewing the
impact of this statement on its current level of disclosure.

   In February 1998, the FASB issued SFAS No. 132, "Employers' Disclosures about
Pensions and Other Postretirement Benefits" which is effective for fiscal years
beginning after December 15, 1997. SFAS No. 132 revises employers' disclosures
about pension and other postretirement benefit plans. It does not change the
measurement or recognition of those plans. This statement standardizes the
disclosure requirements for pension and other postretirement benefits to the
extent practicable, requires additional information on changes in the benefit
obligations and fair values of plan assets that will facilitate financial
analysis, and eliminates certain disclosures. The Company has determined that
the adoption of this new standard will not have a material effect on the
Company's disclosure for all periods presented.

   In June 1998, the FASB issued SFAS No. 133, "Accounting for Derivative
Instruments and Hedging Activities." SFAS No. 133, which is effective for fiscal
years beginning after June 15, 1999, requires the Company to recognize all
derivatives on the balance sheet at fair value.


                                       15
<PAGE>

The Company has determined that the adoption of this new standard will not have
a material effect on the Company's financial statements or disclosure for all
periods presented.


                                       16
<PAGE>


                                     PART II
                                OTHER INFORMATION

Item 1. Legal Proceedings

   The Company is not involved in any legal proceedings that management believes
would have a material adverse effect on the Company's financial position or
results of operations.


Item 2. Changes in Securities

Recent Sales of Unregistered Securities

   On July 10, July 17 and July 24, 1998, the Company issued an aggregate of
812,501 shares of Common Stock to ARE as partial consideration for the Screeem!
Business. See "Part I--Item 1--Management's Discussion and Analysis of Financial
Condition and Results of Operation--Overview." The issuance was exempt from the
provisions of Section 5 of the Securities Act of 1933 pursuant to Section 4(2)
thereof and/or Regulation D promulgated thereunder.


Use of Proceeds from Registered Securities

   On December 18, 1996, the Securities and Exchange Commission declared
effective the Company's Registration Statement (No. 333-15153) on Form S-1, as
then amended, relating to the Company's initial public offering of 2,702,500
shares of Common Stock (of which 2,052,500 were offered by the Company.)

   The net offering proceeds to the Company after deducting the expenses were
approximately $19,845,000.

   From December 24, 1996 until January 31, 1998, the net offering proceeds were
invested in interest-bearing, investment-grade securities. During the first six
months of fiscal 1998, the Company applied all of the net offering proceeds as
follows: (1) $10,025,000 as partial consideration for the Screeem! Business and
(2) $9,820,000 for working capital.


Item 3. Defaults Upon Senior Securities

   None.


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

            The Annual Meeting of Stockholders of the Company was held on
July 14, 1998, for the purpose of: (i) electing two directors, (ii) approving
the Company's Amended and Restated 1996 Stock Incentive Plan and (iii) ratifying
the selection of auditors for the current fiscal year. Proxies were solicited by
management pursuant to Regulation 14 under the Securities Exchange Act of 1934.
There was no solicitation in opposition to management's proposals and nominees,
and all such proposals were adopted and nominees elected.


                                       17
<PAGE>

With respect to the re-election of Mr. Sidney S. Kahn and Ms. Geraldine
Karetsky as directors of the Company, the number of shares of Common Stock
voted was as follows:

                    
                    
      Director                  For             Withheld          Abstain  
      --------                  ---             --------          -------  
      Sidney S. Kahn         12,263,690          41,935             100    
      Geraldine Karetsky     12,263,790          42,035             100    
                             

     The terms of office of directors Christopher C. Edgar, S. Roger Horchow,
Stephen I. Kahn, and Joseph J. Pinto continued after the meeting.

      With respect to the approval of the Amended and Restated 1996 Stock
Incentive Plan, the number of shares of Common Stock voted was as follows:

                    
                     For          Withheld      Abstain
                     ---          --------      -------
                  9,682,454       1,071,263      9,625
                    


      With respect to the ratification of Deloitte & Touche LLP as independent
auditors for the current fiscal year, the number of shares of Common Stock voted
was as follows:

                        For      Withheld   Abstain
                        ---      --------   -------
                    12,319,390     860       5,475


Item 5. Other Information

   None.


Item 6. Exhibits and Reports on Form 8-K.

(a)   Exhibits

      2.1    Bill of Sale and Contribution and Assumption Agreement between
             dELiA*s LLC and the Company (incorporated by reference to Exhibit
             2.1 to the Company's Registration Statement on Form S-1
             (Registration No. 333-15153))

      3.1    Certificate of incorporation of the Company (incorporated by
             reference to Exhibit 3.1 to the Company's Registration Statement on
             Form S-1 (Registration No. 333-15153))

      3.2    Bylaws of the Company  (incorporated  by reference to Exhibit 3.2
             to the Company's Registration Statement on Form S-1
             (Registration No. 333-15153))

      10.1   Form of Employment Agreement between the Company and Stephen I.
             Kahn (incorporated by reference to Exhibit 10.1 to the Company's
             Registration Statement on Form S-1 (Registration No. 333-15153))

      10.2   Employment Agreement between the Company and Christopher C. Edgar
             (incorporated by reference to Exhibit 10.2 to the Company's
             Registration Statement on Form S-1 (Registration No.
             333-15153))


                                       18
<PAGE>

      10.3   Employment Agreement between the Company and Evan Guillemin
             (incorporated by reference to Exhibit 10.3 to the Company's
             Registration Statement on Form S-1 (Registration No. 333-15153))

      10.4   Form of Family Stockholders Agreement among the Company, Stephen I.
             Kahn and the persons listed on exhibit A thereto (incorporated by
             reference to Exhibit 10.4 to the Company's Registration Statement
             on Form S-1 (Registration No. 333-15153))

      10.5   Amended and Restated 1996 Stock Incentive Plan (incorporated by
             reference to the Company's Schedule 14A filed on June 12, 1998)

      10.6   Restricted Stock Plan (incorporated by reference to Exhibit 10.6 to
             the Company's Registration Statement on Form S-1 (Registration No.
             333-15153))

      10.7   Stock Option Agreement between the Company and Evan Guillemin
             (incorporated by reference to Exhibit 10.7 to the Company's
             Registration Statement on Form S-1 (Registration No. 333-15153))

      10.8   Transitional Services Agreement, dated as of July 10, 1998, among
             American Retail Enterprises, L.P., Screeem Inc., and the Company

      10.9   Lease Agreement dated May 3, 1995 between the Company and The
             Rector, Church-Wardens and Vestrymen of Trinity Church in the City
             of New-York (the "Lease Agreement"); Modification and Extension of
             Lease Agreement dated September 26, 1996 (incorporated by reference
             to Exhibit 10.9 to the Company's Registration Statement on Form S-1
             (Registration No. 333-15153))

      10.10  Form of Restricted Stock Agreements between the Company and holders
             of Common Stock subject to the Restricted Stock Plan (incorporated
             by reference to Exhibit 10.10 to the Company's Registration
             Statement on Form S-1 (Registration No. 333-15153))

      10.11  [omitted]

      10.12  Lease Agreement dated April 25, 1997 between the Company and
             Keystone Distribution Center, Inc. (incorporated by reference to
             Exhibit 10.12 to the Company's Annual Report on Form 10-K for the
             fiscal year ended January 31, 1997)

      10.13  Agreement, dated April 4, 1997, between the Company and The Rector,
             Church Wardens and Vestrymen of Trinity Church in the City of New
             York amending the Lease Agreement (incorporated by reference to
             Exhibit 10.13 to the Company's Annual Report on Form 10-K for the
             fiscal year ended January 31, 1997)

      10.14  Agreement, dated October 7, 1997, between the Company and The
             Rector, Church Wardens and Vestrymen of Trinity Church in the City
             of New York amending the Lease Agreement (incorporated by reference
             to 10.14 to the Company's Quarterly Report on Form 10-Q for the
             fiscal quarter ended October 31, 1997)

      27     Financial Data Schedule

(b)   The Company filed a Current Report on Form 8-K, dated July 27, 1998,
      reporting Item 5. This report contained information about the acquisition
      of the Screeem! Business.


                                       19
<PAGE>

                                  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.

                               dELiA*s Inc.
                               (Registrant)
Date: September 14, 1998

                               By: /s/  Stephen I. Kahn
                                   ----------------------
                                   Stephen I. Kahn
                                   Chairman of the Board, President and
                                   Chief Executive Officer


                               By: /s/  Evan Guillemin
                                   ----------------------
                                   Evan Guillemin
                                   Chief Financial Officer and Treasurer
                                   (principal financial and accounting officer)

















                                       20
<PAGE>


                                Exhibit Index

 2.1  Bill of Sale and Contribution and Assumption Agreement between dELiA*s LLC
      and the Company (incorporated by reference to Exhibit 2.1 to the Company's
      Registration Statement on Form S-1 (Registration No.
      333-15153))

 3.1  Certificate of incorporation of the Company (incorporated by reference to
      Exhibit 3.1 to the Company's Registration Statement on Form S-1
      (Registration No. 333-15153))

 3.2  Bylaws of the Company (incorporated by reference to Exhibit 3.2 to the
      Company's Registration Statement on Form S-1 (Registration No.
      333-15153))

10.1  Form of Employment Agreement between the Company and Stephen I. Kahn
      (incorporated by reference to Exhibit 10.1 to the Company's Registration
      Statement on Form S-1 (Registration No. 333-15153))

10.2  Employment Agreement between the Company and Christopher C. Edgar
      (incorporated by reference to Exhibit 10.2 to the Company's Registration
      Statement on Form S-1 (Registration No. 333-15153))

10.3  Employment Agreement between the Company and Evan Guillemin (incorporated
      by reference to Exhibit 10.3 to the Company's Registration Statement on
      Form S-1 (Registration No. 333-15153))

10.4  Form of Family Stockholders Agreement among the Company, Stephen I. Kahn
      and the persons listed on exhibit A thereto (incorporated by reference to
      Exhibit 10.4 to the Company's Registration Statement on Form S-1
      (Registration No. 333-15153))

10.5  Amended and Restated 1996 Stock Incentive Plan (incorporated by reference
      to the Company's Schedule 14A filed on June 12, 1998)

10.6  Restricted Stock Plan (incorporated by reference to Exhibit 10.6 to the
      Company's Registration Statement on Form S-1 (Registration No.
      333-15153))

10.7  Stock Option Agreement between the Company and Evan Guillemin
      (incorporated by reference to Exhibit 10.7 to the Company's Registration
      Statement on Form S-1 (Registration No. 333-15153))

10.8  Transitional Services Agreement, dated as of July 10, 1998, among American
      Retail Enterprises, L.P., Screeem Inc., and the Company

10.9  Lease Agreement dated May 3, 1995 between the Company and The Rector,
      Church-Wardens and Vestrymen of Trinity Church in the City of New-York
      (the "Lease Agreement"); Modification and Extension of Lease Agreement
      dated September 26, 1996 (incorporated by reference to Exhibit 10.9 to the
      Company's Registration Statement on Form S-1 (Registration No.
      333-15153))

10.10 Form of Restricted Stock Agreements between the Company and holders of
      Common Stock subject to the Restricted Stock Plan (incorporated by
      reference to Exhibit 10.10 to the Company's Registration Statement on Form
      S-1 (Registration No. 333-15153))

10.11 [omitted]

10.12 Lease Agreement dated April 25, 1997 between the Company and Keystone
      Distribution Center, Inc. (incorporated by reference to Exhibit 10.12 to
      the Company's Annual Report on Form 10-K for the fiscal year ended January
      31, 1997)

10.13 Agreement dated April 4, 1997 between the Company and The Rector, Church
      Wardens and Vestrymen of Trinity Church in the City of New York amending
      the Lease Agreement (incorporated by reference to Exhibit 10.13 to the
      Company's Annual Report on Form 10-K for the fiscal year ended January 31,
      1997)



                                       21
<PAGE>

10.14 Agreement dated October 7, 1997 between the Company and The Rector, Church
      Wardens and Vestrymen of Trinity Church in the City of New York amending
      the Lease Agreement (incorporated by reference to 10.14 to the Company's
      Quarterly Report on Form 10-Q for the fiscal quarter ended October 31,
      1997)

27    Financial Data Schedule


                                       22