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, 1999

                                       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 10, 1999, was 7,854,110 shares.
<PAGE>
                                                            
      
        
<TABLE>
<CAPTION>

                    SWISS ARMY BRANDS, INC. AND SUBSIDIARIES
                                     INDEX

<S>          <C>                                                    <C>

PART I:  FINANCIAL INFORMATION                                       Page No.
------------------------------

Item 1.       FINANCIAL STATEMENTS

              Consolidated Balance Sheets as of
              March 31, 1999 and December 31, 1998.                  3 - 4

              Consolidated Statements of Operations for the
              Three Months Ended March 31, 1999 and 1998.                5

              Consolidated Statements of Stockholders' Equity
              for the Three Months Ended March 31, 1999 and
              1998.                                                      6

              Consolidated Statements of Cash Flows for the
              Three Months Ended March 31, 1999 and 1998.                7

              Notes to Consolidated Financial Statements             8 - 9 

Item 2.       MANAGEMENT'S DISCUSSION AND ANALYSIS
              OF FINANCIAL CONDITION AND RESULTS OF
              OPERATIONS                                           10 - 12

Item 3.       QUANTITATIVE AND QUALITATIVE DISCLOSURES
              ABOUT MARKET RISK                                         12 

Part II:  OTHER INFORMATION
---------------------------

Item 6.       EXHIBITS AND REPORTS ON FORM 8-K                          13

Signatures                                                              14

The Exhibit Index Appears on Page 13.

</TABLE>
<PAGE>
<TABLE>
<CAPTION>


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




                                                March 31,         December 31, 
                                                  1999                1998  
                                               (unaudited)  
<S>                                             <C>               <C>


Current assets:
   Cash and cash equivalents                     $   5,169         $   1,309

   Accounts receivable, less
    allowance for doubtful accounts
    of $975 for both periods                        23,000            31,321   

   Inventories                                      34,809            28,890  

   Deferred income taxes                             2,214             2,205  

   Prepaid and other                                 4,534             6,658
                                                   --------          --------

      Total current assets                          69,726            70,383   
                                                   --------          -------- 
 
Deferred income taxes                                1,076             1,069 

Property, plant and equipment, net                   3,569             3,735

Investments in preferred units                       7,164             7,164  

Investments in common stock                             33             2,303 

Foreign distribution rights, net                     2,708             2,875
   
Other assets                                        13,020            12,875  
                                                   --------         ---------

Total Assets                                       $97,296          $100,404   
                                                   ========         =========

</TABLE>

  


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









                                       3
<PAGE>
<TABLE>
<CAPTION>


                    SWISS ARMY BRANDS, INC. AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS
                       (In thousands, except share data)
                      Liabilities and Stockholders' Equity






                                                 March 31,        December 31,
                                                   1999               1998 
                                                (unaudited)
<S>                                            <C>               <C>

              
Current liabilities:
    Line of credit                              $  6,060          $   5,140  
                               
    Accounts payable                              10,956             12,439 

    Accrued liabilities                            7,144              8,227 
                                                 --------           -------- 

     Total current liabilities                    24,160             25,806   
                                                 --------           --------
     
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 -
      8,868,218 and 8,852,218, respectively          886              885

   Additional paid-in capital                     46,525           46,472 

   Accumulated other comprehensive income (loss)    (556)             177 

   Retained earnings                              35,103           35,456 
                                                 --------         --------
                                                  81,958           82,990  

   Less:Treasury stock; 1,006,708 and 958,108          
             shares, respectively                 (8,642)          (8,194) 

        Deferred compensation                       (180)            (198)   
                                                 --------         --------

   Total stockholders' equity                     73,136           74,598 
                                                 --------         --------
                      
Total Liabilities and Stockholders' Equity       $97,296         $100,404 
                                                 ========         ========
</TABLE>

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




                                       4
<PAGE>
<TABLE>
<CAPTION>

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



                                                       Three Months Ended
                                                            March 31,
                                                     1999               1998 
<S>                                                <C>                <C>

Net sales                                           $23,570            $24,610

Cost of sales                                        14,621             15,375 
                                                    --------           --------
Gross profit                                          8,949              9,235  

Selling, general and administrative expenses          9,990             10,305  
                                                    --------           --------
Operating loss                                       (1,041)            (1,070)

Interest income and other, net                            7                 50

Gain on sale of investment                              420              1,500
                                                    --------           --------  
Total interest income and other, net                    427              1,550
                                                    --------           --------  
Income (loss) before income taxes                      (614)               480

Income tax provision (benefit)                         (261)               194
                                                    --------           --------
Net income (loss)                                     ($353)              $286 
                                                    ========           ========

Earnings per share:
    Basic                                            ($0.04)             $0.03  
                                                    ========           ========
    Diluted                                          ($0.04)             $0.03  
                                                    ========           ======== 

Weighted average number of
   shares outstanding:
    Basic                                             7,885              8,213 
                                                    ========           ======== 
    Diluted                                           7,885              8,273  
                                                    ========           ========
</TABLE>





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






                                       5
<PAGE>
<TABLE>
<CAPTION>
                    SWISS ARMY BRANDS, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY AND COMPREHENSIVE INCOME
               FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998
                       (In thousands, except share data)
                                  (unaudited)

                                                           Accumulated 
                        Common Stock         Additional       Other 
                      Par Value  $.10        Paid-In      Comprehensive     Retained    Treasury     Comprehensive 
                     Shares      Amount      Capital      Income (Loss)     Earnings      Stock       Income (Loss)  
<S>                <C>          <C>         <C>              <C>            <C>         <C>              <C>
 
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       -              $286
 
  
Change in unrealized   
    gain on  marketable
   securities           -          -            -                (5)             -         -                (5)

Foreign currency
   translation            
    adjustment          -          -            -                 1              -         -                 1
                                                                                                          -----
Comprehensive
   income                                                                                                 $282
                                                                                                          =====   
Stock options
   exercised          8,250         1           58               -               -         -
                 -----------    -------    ---------         --------       --------    --------

BALANCE 
March 31, 1998    8,831,968      $883      $46,244           ($244)          $34,279    ($5,113)
                 ===========    =======    =========         ========       ========    =========


BALANCE
December 31, 1998 8,858,218      $885      $46,472            $177           $35,456    ($8,194)


Net loss for three 
   months ended 
   March 31, 1999      -           -          -                 -               (353)      -              ($353)

Change in unrealized   
    gain on  marketable
   securities          -           -          -               (788)             -          -               (788) 

Foreign currency
   translation            
    adjustment         -           -          -                 55              -          -                 55   
                                                                                                          ------ 
Comprehensive
   income                                                                                               ($1,086)
                                                                                                        ========
Stock options
   exercised         10,000         1           53              -               -          -

Repurchase of 
   common stock        -           -          -                 -               -          (448)  
                  ---------     ------     -------           ------          -------    --------
BALANCE 
March 31, 1999    8,868,218      $886      $46,525           ($556)          $35,103    ($8,642)
                  =========     ======     =======           ======          =======    ========
</TABLE>
 

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

                                       6

<PAGE>
<TABLE>
<CAPTION>


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



                                                         Three Months Ended
                                                              March 31,
                                                           1999          1998  
<S>                                                       <C>           <C>
  
Cash flows from operating activities:
   Net income (loss)                                      ($353)         $286
   Adjustments to reconcile net income (loss) to net   
   cash provided from operating activities:
      Stock compensation expense                             18            -
      Depreciation and amortization                         720           714
      Gain on sale of investment                           (420)       (1,500)
      Deferred income taxes                                 (16)           19
                                                          -------       -------
                                                            (51)         (481)
Changes in other current assets and liabilities:
   Accounts receivable                                    8,361         7,582
   Inventories                                           (5,910)       (1,550)
   Prepaid and other                                      2,141           609
   Accounts payable                                      (1,480)        1,408
   Accrued liabilities                                   (1,194)       (1,189)
                                                         -------       --------
      Net cash provided from operating  activities        1,867         6,379
                                                         -------       --------
Cash flows from investing activities:
   Capital expenditures                                    (189)         (233)
   Additions to other assets                               (350)         (265)
   Proceeds from long-term investments                    1,972         1,613
                                                         -------       --------
      Net cash provided from  investing activities        1,433         1,115

Cash flows from financing activities:
   Repurchase of common stock                              (448)          -
   Borrowings under bank agreements                      10,110           -
   Repayments under bank agreements                      (9,190)          -  
   Proceeds from exercise of stock options                   54            59 
                                                         -------       --------
      Net cash provided from financing activities           526            59
                                                         -------       --------
Effect of exchange rate changes on cash                      34           (25) 
                                                         -------       -------- 
Net increase in cash and cash equivalents                 3,860         7,528
   Cash and cash equivalents, beginning of period         1,309         1,070
                                                         -------       --------
   Cash and cash equivalents, end of period             $ 5,169       $ 8,598
                                                        ========      =========
Cash paid during the period:
   Interest                                             $    27       $     7
                                                        ========      =========
   Income taxes                                         $  -          $    95  
                                                        ========      =========
</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, 1999 and 1998
                                  (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, 1998.  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.

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.

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

Investments consist of the following:
                                          March 31, 1999      December 31, 1998 
                                          --------------      -----------------
                                                    (in thousands)
   <S>                                        <C>                   <C>

    Preferred units of Hudson
         River Capital LLC (A)                 $6,313                $6,313
    Preferred units of 
        Victory Ventures LLC (B)                  851                   851
                                               ------                ------- 
        Total  investments in preferred units  $7,164                $7,164
                                               ======                =======
    Common stock of Iron Mountain, Inc. (C)    $    -                $2,273
    Common stock of Chaparral Resources,
         Inc.(D)                                   33                    30
                                               ------                -------
           Total investments in common stock   $   33                $2,303
                                               ======                =======
</TABLE>
  
     (A) Hudson River  Capital  LLC, is a private  equity firm  specializing  in
     middle  market  acquisitions,   re-capitalization   and  expansion  capital
     investments.

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

     (C) Iron  Mountain,  Inc.,  a publicly  traded  company,  is a full service
     provider of records  management and related services.  The Company sold its
     common  stock  investment  in Iron  Mountain,  Inc.  in  January  1999  and
     recognized a gain of approximately $420,000.

                                       8
<PAGE>


     (D) Chapparal Resources, Inc. ("Chapparal"),  a publicly traded company, is
     an independent oil and gas exploration and production company. At March 31,
     1999,  the Company owns 87,634  shares of Chapparal  common stock valued at
     $0.38 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.


INCOME TAXES
------------

     Income taxes are provided at the projected  annual  effective tax rate. The
income tax provision  (benefit) for the interim 1999 and 1998 periods exceed the
federal statutory rate of 34% due primarily to state income taxes.


SUBSEQUENT EVENT
----------------

     On  April  16,  1999,  the  Company  and Bear  Cutlery,  Inc.,  a  Delaware
corporation and a wholly owned subsidiary of the Company (the "Buyer"),  entered
into an Asset Purchase Agreement (the "Agreement") with Bear MGC Cutlery,  Inc.,
an Alabama corporation (the "Seller"), and the shareholders (the "Shareholders")
of the Seller,  pursuant to which the Buyer  acquired  substantially  all of the
assets (other than certain  patent  rights,  which Seller has licensed to Buyer)
and assumed certain of the liabilities of the Seller.  In consideration  for the
acquisition  of the assets,  the Buyer paid the Seller  $6,970,000  in cash upon
execution of the Agreement.  In further consideration of the acquired assets, on
each of April 16, 2000,  2001 and 2002,  the Buyer shall  transfer to the Seller
shares of the Company's common stock, par value $.10 per share ("Common Stock"),
valued at $500,000 (based on the average daily closing price of the Common Stock
during the 30 trading days prior to April 16, 1999).  Pursuant to the Agreement,
the Buyer may also pay the Seller up to an additional  $2,500,000 in either cash
or a  combination  of cash and  shares  as  determined  in  accordance  with the
Agreement,  if the Buyer attains  certain  earnings  targets for the year ending
December 31, 1999.  

     The  source  of  funds  for the  acquisition  was  available  cash  and the
Company's line of credit.

     The business and assets of the Seller  acquired  pursuant to the  Agreement
include the plant,  equipment and certain of the intellectual  property used for
the manufacture and marketing of multi-tools and knives to retail  customers and
original equipment for industrial markets. These assets will continue to be used
for these purposes by the Company.












                                       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, 1999 and 1998
                                  (unaudited)

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

     Sales for the three months ended March 31, 1999 were $23.6 million compared
with $24.6 million for the same period in 1998,  representing a decrease of $1.0
million or 4.2%.  Excluding a $2.1  million  sales  increase  related to special
promotional programs with one customer,  sales decreased by 12.9%. This decrease
was due to a 15% decrease in watch sales, a 10% decrease in cutlery sales, and a
9% decrease in sales of Victorinox products.

     Gross profit of $8.9 million for the quarter ended March 31, 1999 decreased
$0.3 million or 3.1% from 1998. The gross profit margin percentage for the first
quarter of 1999 of 38.0% was higher than the gross profit  margin  percentage of
37.5% reported for the same period in 1998, 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 2000.  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, 1999 of $10.0  million were $0.3 million or 3.1% lower than the amount
for the  comparable  period in 1998. The decrease is primarily due to a decrease
in selling  expenses  offset in part by a $0.2 million charge for  restructuring
costs. As a percentage of net sales, selling general and administrative expenses
increased from 41.9% in 1998 to 42.4% in 1999.

     Interest  income and other,  net of $7,000 for the three months ended March
31,  1999  was  $43,000  lower  than  interest  income  and  other,  net for the
comparable period in 1998 due to increased borrowings in 1999 versus 1998.

     Gain on sale of  investment of $420,000 in the three months ended March 31,
1999 was due to the sale of the Company's investment in Iron Mountain,  Inc. The
gain  on the  sale  of  $1.5  million  in  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  (loss)  before income taxes for the
three  months  ended  March 31,  1999 was a loss of  $614,000  versus  income of
$480,000 for the same period in 1998, a change of $1,094,000.

     Income tax provision  (benefit) was provided at an effective  rate of 42.5%
in 1999 and 40.4% in 1998.



                                       10
<PAGE>


     As a result,  net income  (loss) for the three  months ended March 31, 1999
was a loss of $353,000  ($0.04 per share - basic and diluted)  versus  income of
$286,000  ($0.03 per share - basic and  diluted)  for the same period in 1998, a
change of $639,000.

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

     As of March 31,  1999,  the Company had  working  capital of $45.6  million
compared  with $44.6  million as of  December  31,  1998,  an  increase  of $1.0
million.  Significant  sources of working capital  included $2.0 million in cash
proceeds from the sale of the  Company's  investment in the common stock of Iron
Mountain,  Inc., and significant uses of working capital included a $0.4 million
increase in other assets,  capital  expenditures of $0.2 million and repurchases
of its common  stock of $0.4  million.  The  Company  currently  has no material
commitments for capital expenditures.

     Cash provided from operating  activities was approximately  $1.9 million in
the three  months  ended  March 31,  1999  compared  with  $6.4  million  in the
comparable period in 1998. The change resulted  primarily from a larger increase
in inventory in 1999 as compared to 1998, a decrease in accounts payable in 1999
versus an  increase  in 1998,  offset in part by a larger  decrease  in accounts
receivable in 1999 as compared to 1998.

     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,  1999,  the  Company  has a $15  million  commercial
promissory  note  agreement  which expires on July  31,1999.  As a result of the
Company's  acquisition of certain assets of Bear MGC Cutlery,  Inc., the Company
is currently  reviewing  its options to establish a long-term  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.

                                   YEAR 2000
                                   --------- 

     The  Company  has been  conducting  a review of its  computer  systems  and
operations  to  identify  those  areas that could be affected by the "Year 2000"
issue and has developed an implementation plan to minimize disruption.

     The Company has completed the assessment phase of its internal  information
computer  systems.  Based upon the  assessment,  certain  computer  systems were
vulnerable to the Year 2000 issues.  The Company  presently  believes that, with
modifications to existing software and hardware,  and investment in new software
and  hardware,  the Year 2000 problem as it relates to its own computer  systems
will not pose significant operational concerns. The Company has made significant
progress in completing its Year 2000  projects.  The costs  associated  with the
Year 2000 compliance for the Company's  computer systems primarily include costs
to upgrade computer systems not currently compliant. The majority of these costs
have and will be  incurred  in the normal  course of business as the Company has
continually upgraded their hardware and software to keep pace with technological
advances.  Based upon the Company's  assessments  to date, the costs of the Year
2000  initiative are estimated to be $150,000 (of which  approximately  $100,000
will be  expensed as  incurred),  of which  $75,000 has been spent to date.  







                                       11
<PAGE>

     The Company is working with its significant suppliers and service providers
to ensure  that those  parties  have  appropriate  plans to manage the Year 2000
issue as it relates to the Company's  operations.  The Company has commenced the
communication  process with its significant  suppliers and service providers and
expects this process to be complete by May 31, 1999.

     The Company's Year 2000  initiative is expected to be completed by June 30,
1999.  While the Company  believes its planning  efforts are adequate to address
its Year 2000  concerns,  there can be no  assurance  that the  systems of other
companies  on  which  the  Company's  systems  and  operations  rely  on will be
converted on a timely basis and will not have a material  adverse  effect on the
Company.  However,  based on the  progress  the Company has made on its internal
initiative and the information available from third parties, the Company has not
identified a need to develop an extensive  contingency  plan for  non-compliance
issues at this time.  The need for such plan is evaluated on an ongoing basis as
part of the Company's overall Year 2000 initiative.


           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, 1999, the Company
has  entered  into   foreign   currency   contracts   and  options  to  purchase
approximately  81,000,000  Swiss francs in the years 1999 and 2000 at a weighted
average rate $1.457 Swiss  franc/dollar.  At March 31, 1999, the unrealized loss
on these  contracts and options was  approximately  $1.1 million.  The Company's
ultimate  unrealized  gain or loss on these contracts and options will primarily
depend on the currency  exchange  rates in effect at the time the  contracts and
options mature. At March 31, 1999, the Company has reviewed its foreign exchange
risks and based upon its  foreign  currency  hedging  program  and review of its
outstanding foreign exchange  contracts,  it believes that a near- term increase
in the value of the Swiss franc versus the U.S. dollar would not have a material
effect on the Company's results of operations or financial condition.


















                                       12
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PART II.        OTHER INFORMATION

Item 6.         Exhibits and Reports on Form 8-K
                --------------------------------
<S>    <C>
    
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, 1999.




                                       13
<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, 1999                                     
                                             By /s/ Thomas M. Lupinski 
                                             -------------------------
                                             Name:  Thomas M. Lupinski
                                             Title: Senior Vice President,                         
                                             Chief Financial Officer, Secretary
                                             and Treasurer




















                                       14
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