SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549
                              ___________________

                                   FORM 10-Q

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
                                      1934
        For the Quarterly Period Ended March 31, 1998

                                       OR

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

                        For the transition period from to

                         Commission file number 0-1282-3

                             Swiss Army Brands, Inc.
        (Exact name of registrant as specified in its charter)

              Delaware                            13-2797726
     (State of incorporation)             (I.R.S. Employer Identification No.)

        One Research Drive, Shelton, Connecticut               06484
        (Address of principal executive offices)             (Zip Code)

        Registrant's telephone number, including area code:  (203) 929-6391

                                 NOT APPLICABLE
(Former  name,  former  address and former  fiscal year,  if changed  since last
                                    report.)

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

The number of shares of Issuer's  Common Stock,  $.10 par value,  outstanding on
May 1, 1998, was 8,217,860 shares.
                                                                          
<PAGE>
        

                            SWISS ARMY BRANDS, INC.
                                AND SUBSIDIARIES
                                      INDEX
<TABLE>
<CAPTION>

PART I:  FINANCIAL INFORMATION                                  Page No.
<S>       <C>                                                    <C>

Item 1.    FINANCIAL STATEMENTS

           Consolidated Balance Sheets as of
           March 31, 1998 and December 31, 1997.                  3 - 4

           Consolidated Statements of Operations for the
           Three Months Ended March 31, 1998 and 1997.                5

           Consolidated Statements of Stockholders' Equity
           for the Three Months Ended March 31, 1998 and
           1997.                                                      6

           Consolidated Statements of Cash Flows for the
           Three Months Ended March 31, 1998 and 1997.                7

           Notes to Consolidated Financial Statements             8 - 9

Item 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS
           OF FINANCIAL CONDITION AND RESULTS OF
           OPERATIONS                                           10 - 11

Item 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES
           ABOUT MARKET RISK                                         11      

Part II:   OTHER INFORMATION

Item 6.    EXHIBITS AND REPORTS ON FORM 8-K                          12

Signatures                                                           13

The Exhibit Index Appears on Page 12.
</TABLE>


                                       2
<PAGE>


                    SWISS ARMY BRANDS, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                                 (in thousands)
                                     Assets

<TABLE>
<CAPTION>



                                                 March 31,        December 31, 
                                                   1998               1997
                                                (unaudited)
<S>                                            <C>                 <C>

Current assets:
   Cash and cash equivalents                $   8,598           $   1,078    

   Accounts receivable, less
    allowance for doubtful accounts
    of $975 for both periods                   20,648              28,224   

   Inventories                                 28,994              27,438   

   Deferred income taxes                        3,474               3,519   

   Prepaid and other                            3,277               3,885   
                                              --------            --------
      Total current assets                     64,991              64,144   
                                              --------            --------
Deferred income taxes                           2,433               2,407   

Property, plant and equipment, net of
 accumulated depreciation of $6,893 and 
 $7,207, respectively                           3,655               3,751   

Investments in preferred units                  8,680               8,793   

Investments in common stock                       363                 369    

Foreign distribution rights, net of
   accumulated amortization of $3,358
   and $3,193, respectively                     3,382               3,551   

Other assets, net of accumulated
   amortization of $1,437 and
   $1,223, respectively                        11,086              11,036   
                                              --------             -------
Total Assets                                  $94,590             $94,051   
                                              ========            ========

</TABLE>
The accompanying notes to consolidated financial statements are an integral part
of these balance sheets.

                                       3
<PAGE>



                    SWISS ARMY BRANDS, INC. AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS
                       (In thousands, except share data)

                      Liabilities and Stockholders' Equity
<TABLE>
<CAPTION>



                                               March 31,        December 31,
                                                 1998               1997   
                                              (unaudited)       
                  
<S>                                              <C>               <C>

Current liabilities:
   Accounts payable                               $9,877            $8,478      

   Accrued liabilities                             8,664             9,865      
                                                 --------          --------
     Total current liabilities                    18,541            18,343      

Commitments and contingencies

Stockholders' equity:
   Preferred stock, par value $.10
      per  share: shares authorized -
      2,000,000; no shares issued                    -                 -          

   Common stock, par value $.10 per
      share: shares authorized -
      18,000,000; shares issued -
      8,831,968 and 8,823,718  respectively          883               882      

   Additional paid-in capital                     46,244            46,186      

   Foreign currency translation adjustment          (239)             (240)     

   Unrealized loss on marketable securities           (5)               -         

   Retained earnings                              34,279            33,993      
                                                ---------          --------
                                                  81,162            80,821  
   Less-cost of common stock in
      treasury; 614,108 shares                    (5,113)           (5,113)     
                                                ---------          --------
   Total stockholders' equity                     76,049            75,708      
                                                ---------          --------
Total Liabilities and Stockholders' Equity       $94,590           $94,051      
                                                =========          ========

</TABLE>


The accompanying notes to consolidated financial statements are an integral part
of these balance sheets.

                                       4
<PAGE>


                    SWISS ARMY BRANDS, INC. AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                     (In thousands, except per share data)
                                  (unaudited)
<TABLE>
<CAPTION>


                                                  Three Months Ended
                                                      March 31,      
                                                 1998           1997       

<S>                                            <C>            <C>

Net sales                                       $24,610        $24,215  

Cost of sales                                    15,375         15,195  
                                               ---------      ---------
Gross profit                                      9,235          9,020  

Selling, general and administrative 
  expenses                                       10,305         10,836  
                                               ---------      ---------
Operating loss                                   (1,070)        (1,816) 

Interest income and other, net                       50             54 

Gain on sale of investment                        1,500             -  
                                               ---------      ---------
Total interest income and other, net              1,550             54 
                                               ---------      ---------

Income (loss) before income taxes                   480         (1,762) 

Income tax provision (benefit)                      194           (714) 
                                               ---------      ---------
Net income (loss)                                  $286        ($1,048) 
                                               =========      =========   
Earnings per share:
    Basic                                         $0.03         ($0.13)
                                               =========      =========
    Diluted                                       $0.03         ($0.13)
                                               =========      =========
Weighted average number of
   shares outstanding:
    Basic                                         8,213          8,209  
                                               =========      =========
    Diluted                                       8,273          8,209  
                                               =========      =========
</TABLE>


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

                                       5
<PAGE>

                    SWISS ARMY BRANDS, INC. AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
               FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
                       (In thousands, except share data)
                                  (unaudited)


<TABLE>
<CAPTION>
  
                                                           Unrealized     Foreign
                            Common Stock      Additional    Loss on      Currency   
                           Par Value  $.10      Paid-In    Marketable   Translation   Retained    Treasury
                         Shares      Amount     Capital    Securities    Adjustment   Earnings      Stock   
<S>                   <C>             <C>      <C>          <C>            <C>        <C>        <C>
  
 
BALANCE
December 31, 1996      8,822,968       $882     $46,182      $  -           ($113)     $38,018    ($5,113)

Net  loss for three
   months ended
   March 31, 1997            -           -          -           -              -        (1,048)       -    

Stock options
   exercised                 750         -            4         -              -           -          -

Foreign currency
   translation    
   adjustment                -           -          -           -             (24)         -          -
                      -----------    --------   --------   ---------      ---------   ----------  ---------
BALANCE 
March 31, 1997         8,823,718       $882     $46,186      $  -           ($137)     $36,970    ($5,113)
                      ===========    ========   ========   =========      =========   ==========  =========  


BALANCE
December 31, 1997      8,823,718       $882     $46,186      $  -           ($240)     $33,993    ($5,113)

Net income for three
   months ended
   March 31, 1998            -           -          -           -              -           286        - 

Unrealized loss on 
    marketable
    securities               -           -          -           (5)            -           -          -  

Stock options
   exercised               8,250          1          58         -              -           -          -   

Foreign currency
   translation    
   adjustment                -           -          -           -               1          -          -
                      ------------    --------  ---------   ---------     ---------   ---------    ---------
BALANCE 
March 31, 1998         8,831,968       $883     $46,244     $   (5)         ($239)     $34,279    ($5,113)
                      ============    ========  =========   =========     =========   =========    =========  

</TABLE>

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

                                       6
<PAGE>

                    SWISS ARMY BRANDS, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (In thousands)
                                  (unaudited)
<TABLE>
<CAPTION>


                                                        Three Months Ended
                                                             March 31,
                                                         1998         1997     

<S>                                                   <C>           <C>
Cash flows from operating activities:
   Net income (loss)                                     $286       ($1,048)
   Adjustments to reconcile net income (loss) to net   
   cash provided from operating activities:
      Depreciation and amortization                       714           741
      Gain on sale of investment                       (1,500)           -
      Deferred income taxes                                19            - 
                                                       -------       --------
                                                         (481)         (307) 

Changes in other current assets and liabilities:
   Accounts receivable                                  7,582        12,458
   Inventories                                         (1,550)       (4,074)
   Prepaid and other                                      609          (644)
   Accounts payable                                     1,408          (762)
   Accrued liabilities                                 (1,189)         (456)
                                                      --------      --------
      Net cash provided from operating  activities      6,379         6,215
                                                      --------      --------

Cash flows from investing activities:
   Capital expenditures                                  (233)         (325)
   Additions to other assets                             (265)         (710)
   Distribution from investment in preferred units      1,613            -
                                                      --------      -------- 
      Net cash provided from (used for) investing 
          activities                                    1,115        (1,035)
                                                      --------      --------

Cash flows from financing activities:
   Proceeds from exercise of stock options                 59             4
                                                      --------      --------
      Net cash provided from financing activities          59             4
                                                      --------      --------

Effect of exchange rate changes on cash                   (25)          (47)

Net increase in cash and cash equivalents
   Cash and cash equivalents, beginning of period       7,528         5,137
   Cash and cash equivalents, end of period             1,070         2,067
                                                      --------      -------- 
                                                      $ 8,598       $ 7,204
                                                      ========      ========
Cash paid during the period:
   Interest                                            $    7       $     4
                                                      ========      ======== 
   Income taxes                                        $  295       $    -    
                                                      ========      ========
</TABLE>


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

                                       7
<PAGE>

                    SWISS ARMY BRANDS, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                            MARCH 31, 1998 and 1997
                                  (unaudited)

CONSOLIDATED FINANCIAL STATEMENTS
---------------------------------
     The consolidated  financial statements included in this Form 10-Q have been
prepared by Swiss Army Brands, Inc. ("Swiss Army", the "Company") without audit.
Certain  information  and footnote  disclosures  normally  included in financial
statements prepared in accordance with generally accepted accounting  principles
have been  condensed  or omitted  pursuant to the rules and  regulations  of the
Securities  and Exchange  Commission.  It is suggested  that these  consolidated
financial  statements be read in conjunction  with the financial  statements and
notes thereto  included in the Company's  report on Form 10-K for the year ended
December  31, 1997.  In the opinion of  management  of the Company,  the interim
financial statements included herein reflect all adjustments, consisting only of
normal recurring adjustments, necessary for a fair presentation of the financial
position,  results  of  operations  and  cash  flows  for  the  interim  periods
presented.  The preparation of financial statements in conformity with generally
accepted  accounting  principles  requires  management  to  make  estimates  and
assumptions  that affect the reported  amounts of assets and  liabilities at the
date of the  financial  statements  and the  reported  amounts of  revenues  and
expenses  during the reporting  period.  Actual  results could differ from those
estimates.  Due to the seasonal nature of the Company's business, the results of
operations for the interim periods  presented are not necessarily  indicative of
the operating results for the full year.

COMPREHENSIVE INCOME
--------------------
     Effective  January 1, 1998,  the Company  adopted  Statement  of  Financial
Standards ("SFAS") No. 130, "Reporting  Comprehensive  Income" which establishes
standards  for  the  reporting  and  display  of  comprehensive  income  and its
components.

     The components of  comprehensive  income (loss),  net of tax, for the first
quarter of 1998 and 1997 are as follows:
<TABLE>
<CAPTION>

                                               March 31, 1998     March 31, 1997
                                                        (in thousands)
       <S>                                         <C>                <C>    

        Net income (loss)                           $286              ($1,048)
          
        Other comprehensive income,
         net of tax:                       
            Foreign currency translation 
              adjustment                               1                  (14)    
            Unrealized loss on marketable
              securities                              (3)                   -
                                                    ------             --------
            Other comprehensive income                (2)                 (14)
                                                    ------             --------
        Comprehensive income (loss)                 $284              ($1,062)
                                                    ======             ========
</TABLE>


INVENTORIES
-----------
     Domestic  inventories  are stated at the lower of cost  (determined  by the
last-in,  first-out (LIFO) method) or market.  Foreign inventories are valued at
the  lower  of  cost  or  market  determined  by the  FIFO  method.  Inventories
principally consist of finished goods.

                                       8
<PAGE>


INVESTMENTS
-----------
<TABLE>
<CAPTION>

Investments consist of the following:
                                             March 31, 1998    December 31, 1997
                                                      (in thousands)
       <S>                                       <C>                 <C>    

        Preferred units of Hudson
            River Capital LLC (A)                 $7,794              $7,907
        Preferred Units of 
            Victory Ventures LLC (B)                 886                 886
                                                  -------             -------
            Total  investments in preferred units $8,680              $8,793
                                                  =======             =======
        Common stock of Chaparral Resources,
             Inc. (C)                             $  213              $  219
        Common stock of SWWT, Inc. (D)               150                 150
                                                  -------             -------
               Total investments in common stock  $1,363              $  369      
                                                  =======             =======
</TABLE>


     (A) Hudson River  Capital LLC ("Hudson  River"),  is a private  equity firm
     specializing in middle market acquisitions, re-capitalization and expansion
     capital  investments.  In January  1998,  Hudson River  distributed  to the
     Company  $1,613,000 in cash and  authorized to distribute  42,014 shares of
     common stock (valued at  $1,481,000) of Iron Mountain  Incorporated  ("Iron
     Mountain").  Iron Mountain,  a publicly traded  company,  is a full service
     provider of records management and related services. The Company expects to
     receive the common stock during 1998. The Company recognized a $1.5 million
     gain on the cash and common stock distribution which is included in gain on
     sale of investment in the accompanying financial statements.

     (B) Victory  Ventures LLC is a private  equity firm  specializing  in small
     venture capital investments.

     (C) Chapparal Resources, Inc. ("Chapparal"),  a publicly traded company, is
     an independent oil and gas exploration and production company. At March 31,
     1998,  the Company owns 87,634  shares of Chapparal  common stock valued at
     $2.44 per share.  The Company  accounts for this  investment at fair value,
     with changes  between  cost and fair  value   reflected  as a  component of
     stockholders' equity.

     (D)  SWWT,  Inc.  is  a  holding  company   formerly  in  the  business  of
     manufacturing  and marketing  portable  water  purification  and filtration
     systems to certain markets. The Company has recorded this investment at its
     estimated fair value.

INCOME TAXES
------------
     Income taxes are provided at the projected  annual  effective tax rate. The
income tax provision  (benefit) for the interim 1998 and 1997 periods exceed the
federal statutory rate of 34% due primarily to state income taxes.

EARNINGS PER SHARE
------------------
     In the fourth quarter of 1997, the Company adopted SFAS No. 128,  "Earnings
Per Share". This statement replaces the calculation of primary and fully diluted
earnings per share with basic and diluted  earnings per share.  All earnings per
share  amounts for all periods  presented  have been  restated to conform to the
requirements of this statement.

     For the period ended March 31, 1997, the weighted  average number of shares
of common stock  outstanding do not include the dilutive effect of stock options
as they would have an anti-dilutive effect.

                                       9
<PAGE>

                    SWISS ARMY BRANDS, INC. AND SUBSIDIARIES
          MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                           AND RESULTS OF OPERATIONS
                   THREE MONTHS ENDED MARCH 31, 1998 and 1997
                                  (unaudited)

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

     Sales for the three months ended March 31, 1998 were $24.6 million compared
with $24.2 million for the same period in 1997, representing an increase of $0.4
million or 1.6%.  Excluding a $1.1  million  sales  decrease  related to special
promotional  programs with one customer,  sales increased by 6.7%. This increase
was due to a 9.7% increase in sales of Victorinox products, primarily related to
the Victorinox SwissTool, and a 7.1% increase in watch sales.

     Gross profit of $9.2 million for the quarter ended March 31, 1998 increased
$0.2 million or 2.4% from 1997. The gross profit margin percentage for the first
quarter of 1998 of 37.5% was higher than the gross profit  margin  percentage of
37.2% reported for the same period in 1997, primarily due to the increase in the
value of the U.S.  dollar  versus the Swiss franc offset in part by  unfavorable
product mix. The Company's gross profit margin is a function of both product mix
and Swiss franc exchange rates.  Since the Company imports  virtually all of its
products  from  Switzerland,  its  costs are  affected  by both the spot rate of
exchange and by its foreign currency  hedging  program.  The Company enters into
foreign  currency  contracts and options to hedge the exposure  associated  with
foreign currency  fluctuations.  Based upon current Swiss franc requirements the
Company believes it is hedged through the first quarter of 1999.  However,  such
hedging activity cannot eliminate the long-term  adverse impact on the Company's
competitive  position  and  results  of  operations  that  would  result  from a
sustained  decrease  in the value of the dollar  versus the Swiss  franc.  These
hedging  transactions,  which are meant to reduce foreign  currency  risk,  also
reduce the beneficial effects to the Company if the dollar increases relative to
the  Swiss  franc.   The  Company   plans  to  continue  to  engage  in  hedging
transactions; however, the extent to which such hedging transactions will reduce
the effect of adverse currency fluctuations is uncertain.

     Selling,  general and  administrative  expenses  for the three months ended
March 31, 1998 of $10.3  million were $0.5 million or 5.2% lower than the amount
for the comparable  period in 1997. The decrease is primarily due to expenses in
1997 related to the  introduction  of a new brand of Swiss  watches.  Due to the
increase  in net sales and the  decrease in  expenses,  as a  percentage  of net
sales, selling general and administrative  expenses decreased from 44.7% in 1997
to 41.9% in 1998.

     Interest income and other,  net of $50,000 for the three months ended March
31, 1998 was $4,000 lower than interest income and other, net for the comparable
period in 1997.

     Gain on sale of  investment of $1.5 million in the three months ended March
31, 1998 was due to a cash and stock distribution from the Company's  investment
in Hudson River Capital LLC.

     As a result of these  changes,  income  before  income  taxes for the three
months ended March 31, 1998 was  $480,000  versus a loss of  $1,762,000  for the
same period in 1997, a change of $2,242,000.

     Income tax provision  (benefit) was provided at an effective  rate of 40.5%
in 1998 and 1997.

                                       10
<PAGE>

     As a result,  net  income for the three  months  ended  March 31,  1998 was
$286,000  ($0.03  per share - basic  and  diluted)  versus a loss of  $1,048,000
($0.13 per share - basic and  diluted)  for the same period in 1997, a change of
$1,334,000.

                        LIQUIDITY AND CAPITAL RESOURCES
                        -------------------------------

     As of March 31,  1998,  the Company had  working  capital of $46.4  million
compared  with $45.8  million as of  December  31,  1997,  an  increase  of $0.6
million.  Significant  sources of working  capital  included a $1.6 million cash
distribution  from the  Company's  investment  in Hudson  River  Capital LLC and
significant  uses of working capital  included a $0.2 million  increase in other
assets and capital  expenditures of $0.3 million.  The Company  currently has no
material commitments for capital expenditures.

     Cash provided from operating  activities was approximately  $6.4 million in
the three  months  ended  March 31,  1998  compared  with  $6.2  million  in the
comparable  period in 1997. The  improvement  resulted  primarily from a smaller
increase  in  inventory  in 1998 as compared to 1997 offset in part by a smaller
decrease in accounts receivable in 1998 as compared to 1997.

     Swiss Army meets its  short-term  liquidity  needs with cash generated from
operations,  and, when  necessary,  bank borrowings  under its revolving  credit
agreement.  As of March 31, 1998,  the Company has a $5.0 million line of credit
which it can use for any  borrowings  and a $5.0 million  commercial  promissory
note agreement which expires on June 30,1998. The Company is currently reviewing
its  options to  establish  a new  revolving  credit  agreement.  The  Company's
short-term  liquidity  is  affected  by seasonal  changes in  inventory  levels,
payment  terms and  seasonality  of sales.  The  Company  believes  its  current
liquidity  levels  and  financial  resources  will be  sufficient  to  meet  its
operating needs in the near-term.

           QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
           ----------------------------------------------------------

Foreign Exchange Risk

     The  Company  is exposed to market  risk from  changes in foreign  exchange
rates as the Company  imports  virtually all its products from  Switzerland.  To
minimize the risks associated with  fluctuations in the value of the Swiss franc
versus the U.S. dollar,  the Company enters into foreign currency  contracts and
options.  Pursuant to guidelines approved by its Board of Directors, the Company
is to engage in these  activities  only as a hedging  mechanism  against foreign
exchange  rate  fluctuations   associated  with  specific   inventory   purchase
commitments to protect gross margin and is not to engage in speculative trading.
Gains or losses on these  contracts  and options are deferred and  recognized in
cost of sales when the related inventory is sold. At March 31, 1998, the Company
has  entered  into   foreign   currency   contracts   and  options  to  purchase
approximately 83,000,000 Swiss francs in 1998 and 1999. The Company expects that
the deferred gains and losses on these contracts will be immaterial.

                                       11
<PAGE>


PART II.        OTHER INFORMATION

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

       (2)   Not Applicable

       (3)   Not Applicable

       (4)   Not Applicable

      (10)   Not Applicable

     (11)    Statement  regarding  computation  of  per  share  earnings  is not
             required because the relevant computation can be clearly determined
             from  the material  contained in the Financial  Statements included
             herein.

     (15)    Not Applicable

     (18)    Not Applicable

     (19)    Not Applicable

     (22)    Not Applicable

     (23)    Not Applicable

     (24)    Not Applicable

     (27)    Financial data schedule

     (99)     Not Applicable

     b.) There  were no  reports or  exhibits  on Form 8-K for the three  months
     ended March 31, 1998.



                                       12
<PAGE>


     Pursuant to the  requirements  to 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.

                                             Swiss Army Brands, Inc.     
                                            (Registrant)

Date:  May 10, 1998                                     
                                             By /s/ Thomas M. Lupinski     
                                             Name:  Thomas M. Lupinski
                                             Title: Senior Vice President,
                                             Chief Financial Officer, Secretary
                                             and Treasurer




                                       13
<PAGE>