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 June 30, 2000

                                       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  Registrant's  Common  Stock,  $.10 par  value,
outstanding on August 10, 2000, was 8,065,346 shares.
<PAGE>
<TABLE>
<CAPTION>


                             SWISS ARMY BRANDS, INC.
                                AND SUBSIDIARIES
                                      INDEX



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

Item 1.           FINANCIAL STATEMENTS

                  Consolidated Balance Sheets as of
                  June 30, 2000 (unaudited) and December 31, 1999.       3 - 4

                  Consolidated Statements of Operations for the
                  Three and Six Months Ended June 30, 2000 and 1999
                  (unaudited).                                               5

                  Consolidated Statements of Stockholders' Equity
                  and Comprehensive Income  for  the  Six  Months
                  Ended  June  30,  2000  and  1999 (unaudited).             6

                  Consolidated Statements of Cash Flows for the
                  Six Months Ended June 30, 2000 and 1999 (unaudited).       7

                  Notes to Consolidated Financial Statements            8 - 10

Item 2.           MANAGEMENT'S DISCUSSION AND ANALYSIS
                  OF FINANCIAL CONDITION AND RESULTS OF
                  OPERATIONS                                           11 - 13


Item 3.           QUANTITATIVE AND QUALITATIVE DISCLOSURES
                  ABOUT MARKET RISK                                         13



Part II:  OTHER INFORMATION
---------------------------
Item 4.           SUBMISSION OF MATTERS TO A VOTE OF
                  SECURITY HOLDERS                                          14

Item 6.           EXHIBITS AND REPORTS ON FORM 8-K                          15

Signatures                                                                  15

The Exhibit Index appears on page 15.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                    SWISS ARMY BRANDS, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                      (in thousands, except for share data)
                                     Assets


                                                    June 30,       December 31,
                                                      2000             1999
                                                    --------       ------------
                                                                    (unaudited)
<S>        <C>    <C>

Current assets:
   Cash and cash equivalents                         $ 578            $ 1,302

   Accounts receivable, less
    allowance for doubtful accounts
    of $1,060 for both periods                      25,809             33,718

   Inventories                                      41,279             30,227

   Deferred income taxes                             2,242              2,235

   Prepaid and other                                 4,256              3,058
                                                  ---------          ---------
      Total current assets                          74,164             70,540
                                                  ---------          ---------

Deferred income taxes                                1,460              1,474

Property, plant and equipment, net                   4,643              4,856

Investments                                          6,972              4,476

Intangible assets, net                              10,932             11,548

Other assets, net                                   14,907             14,710
                                                  ---------           --------
Total Assets                                      $113,078           $107,604
                                                  =========           ========


</TABLE>

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

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


                                                June 30,           December 31,
                                                  2000                 1999
                                                --------           ------------
                                                                   (unaudited)
<S>                                          <C>                   <C>

Current liabilities:

   Current portion of long-term debt          $     875             $    875

   Accounts payable                              12,722                7,732

   Accrued liabilities                            8,495               10,562
                                              ----------            ---------

   Total current liabilities                     22,092               19,169
                                              ----------            ---------
Long-term liabilities:
    Long-term debt                               12,535               11,362

    Other                                           792                  693
                                              ----------            ---------
    Total Liabilities                            35,419               31,224
                                              ----------            ---------
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 - 8,971,080
      and 8,866,218, respectively                   897                  886

   Additional paid-in capital                    49,116               49,137

   Accumulated other comprehensive income (loss)    410                 (401)

   Retained earnings                             36,007               35,576
                                               ---------             --------
                                                 86,430               85,198

   Less:  Treasury stock:  1,014,108 for
               both periods                      (8,711)              (8,711)
          Deferred compensation                     (60)                (107)
                                               ----------            ---------


Total stockholders' equity                       77,659               76,380
                                               ----------            ---------

Total Liabilities and Stockholders' Equity     $113,078             $107,604
                                               ==========            =========
</TABLE>


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

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



                                   Three Months Ended         Six Months Ended
                                        June 30,                  June 30,
                                    2000        1999           2000       1999
                                    ----        ----           ----       ----
<S>                              <C>         <C>            <C>        <C>
Net revenues                      $29,345     $30,396        $54,881    $53,966

Cost of sales                      17,595      18,406         33,364     33,027
                                  --------    --------       --------   --------
Gross profit                       11,750      11,990         21,517     20,939

Selling, general and administrative
expenses                           11,295      11,330         21,780     21,320
                                  --------    --------       --------   --------
Operating income (loss)               455         660           (263)      (381)

Interest income (expense), net       (345)       (143)          (559)      (136)

Investment gain (loss), net           164      (2,700)         1,583     (2,280)
                                  --------    --------       --------   --------

Total other income (expense), net    (181)     (2,843)         1,024     (2,416)
                                  --------    --------       --------   --------

Income (loss) before income taxes     274      (2,183)           761     (2,797)

Income tax provision (benefit)        119         (57)           330       (318)
                                  --------    --------       --------   --------
Net income (loss)                   $ 155     ($2,126)          $431    ($2,479)
                                  ========    ========       ========   ========
Earnings per share:
   Basic                            $0.02      ($0.27)         $0.05     ($0.32)
   Diluted                          $0.02      ($0.27)         $0.05     ($0.32)

Weighted average number of shares
outstanding:
   Basic                            7,940       7,854          7,895      7,869
   Diluted                          8,153       7,854          8,110      7,869

</TABLE>


The accompanying notes to consolidated financial statements are an integral part
of these statements.
<PAGE>
<TABLE>
<CAPTION>

                    SWISS ARMY BRANDS, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY AND COMPREHENSIVE INCOME
                 FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
                      (in thousands, except for share data)

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

Comprehensive Loss:
   Net  loss for six
      months ended
      June 30, 1999              -               -             -               -               (2,479)        -           ($2,479)
   Change in Unrealized gain on
      marketable securities      -               -             -             (763)                -           -              (763)
   Foreign currency
      translation adjustment     -               -             -              153                 -           -               153
                                                                                                                          ---------
Comprehensive Loss                                                                                                        ($3,089)
Acquisition of Bear                                                                                                       =========
  MGC Cutlery, Inc.              -               -           1,500             -                  -           -
Repurchase of
    common stock                 -               -             -               -                  -          (517)
Stock options exercised         10,000            1             53             -                  -           -
                            -----------      --------      ---------        -------           ---------    --------
BALANCE
June 30, 1999 (unaudited)    8,868,218         $886        $48,025          ($433)            $32,977     ($8,711)
                            ===========      ========      =========        =======           =========    ========
BALANCE
December 31, 1999            8,866,218         $886        $49,137          ($401)            $35,576     ($8,711)

Comprehensive Income:
   Net income for six months
      ended June 30, 2000        -               -             -               -                  431         -              $431
   Foreign currency
      translation adjustment     -               -             -              208                 -           -               208
   Change in unrealized
      gain in  marketable
      securities                 -               -             -              603                 -           -               603
                                                                                                                           ------
Comprehensive Income                                                                                                       $1,242
                                                                                                                           ======
Issuance of common stock       106,112           11            (11)            -                  -           -
Cancellation of stock grant     (1,250)          -             (10)            -                  -           -
                             ----------        ----         ------          ------           --------     --------
BALANCE
June 30, 2000 (unaudited)    8,971,080         $897        $49,116           $410             $36,007     ($8,711)
                             ==========        ====         ======          ======           ========     ========
</TABLE>


The accompanying notes to consolidated financial statements are an integral part
of these statements.
<PAGE>
<TABLE>
<CAPTION>

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

                                                           Six Months Ended
                                                               June 30,
                                                          2000          1999
                                                          ----          ----
<S>                                                      <C>          <C>
Cash flows from operating activities:
   Net income (loss)                                      $431        ($2,479)
   Adjustments to reconcile net income (loss) to
   net cash used in operating activities:
      Depreciation and amortization                      1,788          1,526
      Investment (gain) loss, net                       (1,583)         2,280
      Stock compensation expense                            37             37
      Deferred income taxes                                  7           (298)
Changes in other current assets and liabilities:
   Accounts receivable                                   7,951          7,681
   Inventories                                         (11,148)       (11,283)
   Prepaid and other                                    (1,208)         2,573
   Accounts payable                                      4,962           (252)
   Accrued liabilities                                  (1,959)        (1,151)
                                                       --------       --------
        Net cash used in operating activities             (722)        (1,366)
                                                       --------       --------
Cash flows from investing activities:
   Acquisition of Bear MGC Cutlery, Inc., net of
    cash acquired                                          -           (7,791)
   Capital expenditures                                   (693)          (735)
   Additions to other assets                              (457)           (61)
   Proceeds from sale of investments                       -            1,972
                                                       --------        -------
         Net cash used in investing activities          (1,150)        (6,615)
                                                       --------        -------
Cash flows from financing activities:
   Repurchase of common stock                              -             (517)
   Borrowings under bank agreements                     26,630         28,395
   Repayments under bank agreements                    (25,457)       (20,645)
   Proceeds from exercise of stock options                 -               54
                                                       --------       --------
        Net cash provided from financing activities      1,173          7,287
                                                       --------       --------

Effect of exchange rate changes on cash                    (25)           (64)
                                                       --------       --------
Net increase (decrease) in cash                           (724)          (758)
   Cash and cash equivalents, beginning of period        1,302          1,309
                                                       --------       --------
   Cash and cash equivalents, end of period               $578           $551
                                                       ========       ========
Cash paid during the period:
   Interest                                               $607           $124
                                                       ========       ========
   Income taxes                                         $1,056           $355
                                                       ========       ========
</TABLE>

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

                    SWISS ARMY BRANDS, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             JUNE 30, 2000 and 1999
                                   (unaudited)

CONSOLIDATED FINANCIAL STATEMENTS
---------------------------------
     The consolidated  financial statements included in this Form 10-Q have been
prepared by Swiss Army Brands,  Inc.  ("Swiss  Army" or 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 consolidated
financial  statements and notes thereto included in the Company's report on Form
10-K for the year ended  December 31, 1999.  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:
                                            June 30, 2000     December 31, 1999
                                            -------------     -----------------
                                                    (in thousands)
<S>                                            <C>                 <C>

Preferred units of Highgate
   Capital LLC (A)                              $3,613              $3,613
Common stock of John Hancock
   Financial Services, Inc. (B)                  2,496                 -
Preferred units of
   Victory Ventures LLC (C)                        851                 851
Common stock of Chaparral Resources,
   Inc. (D)                                         12                  12
                                                -------             -------
       Total investments                        $6,972              $4,476
                                                =======             =======
</TABLE>


(A)      Highgate  Capital  LLC,  ("Highgate"),  formerly  known as Hudson River
Capital  LLC,  is  a  private   equity  firm   specializing   in  middle  market
acquisitions,  re-capitalization and expansion capital investments. In the three
months  ended  June 30,  1999,  the  Company  recorded a $2.7  million  non-cash
write-down  of the  investment  in  Highgate  due to the  other  than  temporary
impairment  in the  value  of the  investment.  The  Company  accounts  for this
investment on the cost basis, subject to review for permanent impairment.  Since
this investment does not have a readily  determinable  fair value, the valuation
is subject to uncertainty.
<PAGE>

(B)      In the first  quarter of 2000,  the Company  received  95,707 shares of
common stock of John Hancock Financial  Services,  Inc. ("John Hancock") related
to the  demutualization  of John Hancock.  As a result,  the Company recorded an
investment  gain of  $1,627,000  in the first  quarter  of 2000.  In the  second
quarter of 2000, the Company received an additional 9,663 shares of common stock
of John  Hancock.  As a result,  the  Company  recorded  an  additional  gain of
$164,000 in the second quarter of 2000. The Company accounts for this investment
at fair value,  with changes between cost and fair value reflected as a separate
component of stockholder's equity.

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

(D)     Chapparal Resources, Inc.("Chapparal"), a publicly traded company, is an
independent oil and gas exploration  and production  company.  At June 30, 2000,
the Company owned 1,461 shares of Chapparal  common  stock.  In the three months
ended March 31, 2000, the Company recorded a non-cash  write-down of $208,000 of
its  investment  in Chapparal due to the other than temporary  impairment in the
value of the investment.


EARNINGS PER SHARE
------------------
     For the periods ended June 30, 1999, 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.

INCOME TAXES
------------
     Income taxes are provided at the projected  annual  effective tax rate. The
income tax  benefit  for the  interim  1999  periods  are lower than the federal
statutory  rate of 34% as the  Company  has taken  limited  tax  benefits on the
capital loss write-down of the Highgate investment. The income tax provision for
the interim 2000 periods exceeds the federal statutory rate of 34% due primarily
to state income taxes (net of federal benefit).

RECENT ACCOUNTING PRONOUNCEMENTS
--------------------------------
     In June 1998, the Financial Accounting Standards Board ("FASB") issued SFAS
No. 133 "Accounting for Derivative  Instruments  and Hedging  Activities."  This
statement  standardizes  the accounting and reporting  standards for derivatives
and hedging  activities and is effective for fiscal years  beginning  after June
15, 2000. The Company will adopt this statement  effective  January 1, 2001. The
Company is  currently  evaluating  the  impact of SFAS No. 133 on the  Company's
financial  position and results of  operations  and has  yet to  determine   the
impact of the adoption of this statement.

SUBSEQUENT EVENT
----------------
     On July 24, 2000, the Company and Victorinox AG, a Swiss  corporation and a
principal supplier to and substantial shareholder of the Company ("Victorinox"),
each acquired 50% of the issued and  outstanding  capital stock of Xantia,  S.A.
Fabrique  de  Montres  Precision  ("Xantia"),  the  principal  manufacturer  and
assembler  of watches sold by the Company.  The Xantia  shares were  acquired by
both  firms from the  stockholders  of Xantia  (the  "Sellers")  pursuant  to an
agreement of June 23, 2000,  as amended by  agreements of July 10, 2000 and July
24, 2000 (collectively the "Agreements"),  which contain provisions  intended to
secure ongoing control of Xantia by the Company.
<PAGE>

     Pursuant to the Agreements, the Company paid at the closing 2,250,000 Swiss
Francs ("CHF") ($1,345,500) and delivered 108,374 shares of the Company's Common
Stock,  such  shares  valued  at  1,000,000  CHF  ($602,000).  At  the  closing,
Victorinox paid to the Sellers 3,250,000 CHF  ($1,956,500).  Each of the Company
and Victorinox also agreed to pay an additional 12,000,000 CHF ($7,224,000) over
the next seven years plus  interest  with the total  purchase  price  subject to
upward or downward adjustment of up to 1,000,000 CHF ($602,000).

     The source of funds for the  acquisition  by the Company was a bank line of
credit from the Company's  existing lender. The purchase price was determined on
the basis of arms-length  negotiations  between the Company and the Sellers. The
division of the purchase price between the Company and Victorinox was based upon
an arms-length agreement to share equally in the acquisition.

     Pursuant to the Agreements,  the Company and Victorinox each own 50% of the
capital stock of Xantia.  Following the acquisition,  Xantia retained all of its
pre-closing  assets,  including  plant and equipment used in the manufacture and
assembly of watches and  timepieces  and will continue to employ those assets to
manufacture  timepieces  to be  supplied  to  the  Company  and to  third  party
customers.

Item 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS
                                   (unaudited)

                           FORWARD LOOKING STATEMENTS
                           --------------------------
     The following discussion contains, in addition, to historical  information,
forward looking statements.  The forward looking statements were prepared on the
basis of certain assumptions which relate, among other things, to the demand for
and cost of purchasing and marketing the Company's products; the prices at which
such products may be sold; new product development; seasonal selling trends; the
Swiss franc - U.S.  dollar  exchange  rates;  the extent to which the Company is
able to  successfully  hedge  against  foreign  currency  fluctuations;  and the
Company's  anticipated  credit needs and ability to obtain such credit.  Even if
the  assumptions  upon  which the  projections  are  based  prove  accurate  and
appropriate,  the actual  results of the Company's  operations in the future may
vary widely from financial projections due to increased competition,  changes in
consumer tastes and other factors not yet known or anticipated. Accordingly, the
actual  results of the  Company's  operations in the future may vary widely from
the forward looking statements included herein.

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

Comparison of the Three Months Ended June 30, 2000 and 1999
-----------------------------------------------------------
<TABLE>
<CAPTION>

       Net revenues consist of the following:
                                                       2000              1999
                                                       ----              ----
                       <S>                          <C>               <C>

                        Product sales, net           $29,105           $30,396
                        Royalty income                   240               -
                                                     -------           -------
                                                     $29,345           $30,396
                                                     =======           =======
</TABLE>
<PAGE>

     Product  sales for the three months ended June 30, 2000 were $29.1  million
compared with $30.4 million for the same period in 1999, representing a decrease
of $1.3 million or 4.4%.  The sales  decrease was primarily due to a decrease in
watch sales, offset in part by an increase in sales of Victorinox Original Swiss
Army Knives and Victorinox  SwissCards.  Royalty income relates to the licensing
program of Victorinox Travel Gear, which was introduced in the fourth quarter of
1999.

     Gross  profit of $11.8  million  for the three  months  ended June 30, 2000
decreased $0.2 million or 2.0% from 1999. The gross profit margin percentage for
the  second  quarter of 2000 of 40.0% was higher  than the gross  profit  margin
percentage  of 39.4%  reported  for the same  period in 1999  primarily  because
royalty  income  revenues  have no  related  cost of  sales,  and also due to an
increase in the value of the U.S.  dollar versus the Swiss franc.  The Company's
gross profit margin is a function of both product mix (including royalty income)
and Swiss franc exchange  rates.  Since the Company  imports the majority 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 third quarter of 2001.  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,  it is  uncertain  of the extent to which  such  hedging
transactions will reduce the effect of adverse currency fluctuations.

     Selling,  general and  administrative  expenses  for the three months ended
June 30,  2000 of $11.3  million  were even with the amount  for the  comparable
period  in 1999.  As a  percentage  of net  sales,  total  selling  general  and
administrative expenses increased from 37.3% in 1999 to 38.4% in 2000.

     Interest  income  (expense) and other,  net was expense of $345,000 for the
three months ended June 30, 2000, compared to $143,000 for the comparable period
in 1999 primarily due to increased borrowings related to the acquisition of Bear
MGC Cutlery, Inc.

     Investment  gain  (loss),  net in 2000  was a gain of  $164,000  due to the
common stock received related to the  demutualization  of John Hancock Financial
Services,  Inc.  Investment gain (loss),  net in 1999 was a loss of $2.7 million
due to the  write-down  of the Company's  investment in Highgate  Capital LLC, a
private equity firm.

     As a result of these  changes,  income  (loss)  before income taxes for the
three  months  ended  June 30,  2000 was  income  of  $274,000  versus a loss of
$2,183,000 for the same period in 1999, a change of $2,457,000.

     Income tax expense (benefit) was provided at an effective rate of 43.4% and
2.6% in 2000  and  1999,  respectively.  The  income  tax  benefit  for 1999 was
significantly  lower than the federal  statutory  rate of 34% as the Company has
taken  limited tax  benefits  on the capital  loss  write-down  of the  Highgate
Capital LLC investment.

     As a result, net income (loss) for the three months ended June 30, 2000 was
income  of  $155,000  ($0.02  per  share-basic  and  diluted)  versus  a loss of
$2,126,000  ($0.27 per share  -basic and diluted) for the same period in 1999, a
change of $2,281,000.
<PAGE>
<TABLE>
<CAPTION>

Comparison for the Six Months Ended June 30, 2000 and 1999

       Net revenues consist of the following:
                                                        2000           1999
                                                        ----           ----
                       <S>                           <C>            <C>

                        Product sales, net            $54,415        $53,966
                        Royalty income                    466            -
                                                      -------        -------
                                                      $54,881        $53,966
                                                      =======        =======
</TABLE>

     Product  sales for the six months  ended June 30,  2000 were $54.4  million
compared  with  $54.0  million  for the same  period  in 1999,  representing  an
increase of $0.4 million or 0.8%.  The sales  increase was due the sales related
to Bear Cutlery,  Inc. ("Bear") which was acquired in April 1999 and an increase
in sales of Victorinox products, offset in part by a decrease in watch sales and
a decrease in sales  related to a special  promotion  program with one customer.
Royalty income relates to the licensing program of Victorinox Travel Gear, which
was introduced in the fourth quarter of 1999.

     Gross  profit of $21.5  million  for the six  months  ended  June 30,  2000
increased by $0.6 million or 2.8% from 1999. The gross profit margin  percentage
for the six  months of 2000 of 39.2% was  higher  than the gross  profit  margin
percentage  of 38.8%  reported for the same period in 1999  primarily due to the
increase in the value of the U.S.  dollar versus the Swiss franc and an increase
in royalty income offset in part by unfavorable product mix.

     Selling,  general and administrative expenses for the six months ended June
30, 2000 of $21.8  million  were $0.5 million or 2.2% higher than the amount for
the  comparable  period in 1999.  The  increase was  primarily  due to operating
expenses  of Bear.  As a  percentage  of net sales,  total  selling  general and
administrative expenses increased from 39.5% in 1999 to 39.7% in 2000.

     Interest  income  (expense) and other,  net was expense of $559,000 for the
six months ended June 30, 2000 as compared to $136,000 in the comparable  period
in 1999 due to  increased  borrowings  related  to the  acquisition  of Bear MGC
Cutlery, Inc.

     Investment  gain (loss),  net was a gain of $1,583,000  due to a $1,791,000
gain from the  common  stock  received  related to the  demutualization  of John
Hancock  Financial  Services,  Inc. offset in part by a $208,000 loss related to
the write-down of the Company's common stock investment in Chapparal  Resources,
Inc.  The  investment  loss  in  1999 of  $2,280,000  was due to a $2.7  million
non-cash write-down of its investment in Highgate Capital, LLC offset in part by
a $420,000 gain from the sale of its investment in Iron Mountain, Inc.

     As a result of these changes, income (loss) before income taxes for the six
months  ended June 30, 2000 was income of $761,000  versus a loss of  $2,797,000
for the same period in 1999, a change of $3,558,000.

     Income tax expense (benefit) was provided at an effective rate of 43.4% and
11.4% in 2000 and  1999,  respectively.  The  income  tax  benefit  for 1999 was
significantly  lower than the  statutory  rate of 34% as the  Company  has taken
limited tax benefits on the capital  loss  write-down  of the  Highgate  Capital
investment.

     As a result,  net income  (loss) for the six months ended June 30, 2000 was
income  of  $431,000  ($0.05  per share - basic  and  diluted)  versus a loss of
$2,479,000  ($0.32 per share - basic and diluted) for the same period in 1999, a
change of $2,910,000.
<PAGE>

                         LIQUIDITY AND CAPITAL RESOURCES

     As of June 30,  2000,  the  Company had  working  capital of $52.1  million
compared  with $51.4  million as of  December  31,  1999,  an  increase  of $0.7
million.  Significant uses of working  capital  included  capital   expenditures
of $0.7 million.  The Company currently has no material  commitments for capital
expenditures.

     Cash used in operating activities was approximately $0.7 million in the six
months ended June 30, 2000 as compared to $1.4 million in the comparable  period
in 1999.  The change  resulted from an increase in current  liabilities  in 2000
compared to a decrease  in 1999  offset in part by an increase in other  current
assets in 2000 as compared to a decrease in 1999.

     The Company meets its short-term  liquidity  needs with cash generated from
operations,  and, when  necessary,  bank borrowings  under its revolving  credit
agreement.  As of June 30,  2000,  the Company had  $13,410,000  of  outstanding
borrowings  under its bank  agreement  consisting of a $16.0 million credit line
and a $7.0  million  term  loan.  As a result of the  Company's  acquisition  of
Xantia,  in July 2000, the Company amended its revolving credit agreement which,
among other  things,  increased  the term loan by $1.6  million.  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.

Item 3.         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 June 30, 2000, the Company
has  entered  into   foreign   currency   contracts   and  options  to  purchase
approximately  80.3 million Swiss francs in 2000 and 2001 at a weighted  average
rate  1.539 Swiss  franc/dollar.  At June 30, 2000, the unrealized loss on these
contracts and options was  approximately  $3.1 million.  The Company's  ultimate
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.

<PAGE>

PART II. - OTHER INFORMATION

Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     The annual meeting of the  stockholders  of the Company was held on May 18,
2000,  pursuant to notice, at which meeting  shareholders  elected the following
directors:
<TABLE>
<CAPTION>
                                          NUMBER OF VOTES      NUMBER OF VOTES
                                                FOR                WITHHELD
NAME                                      ---------------      ---------------
----
<S>                                          <C>                   <C>

A. Clinton Allen                              7,419,576             10,703
Clarke H. Bailey                              7,419,676             10,603
Vincent D. Farrell, Jr.                       7,419,580             10,699
Herbert M. Friedman                           7,419,480             10,799
Peter W. Gilson                               7,419,580             10,699
Louis Marx, Jr.                               7,419,676             10,603
Robert S. Prather, Jr.                        7,419,676             10,603
Stanley R. Rawn, Jr.                          7,419,580             10,699
John Spencer                                  7,419,580             10,699
J. Merrick Taggart                            7,419,676             10,603
John V. Tunney                                7,419,484             10,795
</TABLE>
<PAGE>

Item 6.     EXHIBITS AND REPORTS ON FORM 8-K

A.)       Exhibits

(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.

(27)      Financial Data Schedule

(99)      Not Applicable

B.)      There were no reports on Form 8-K for the three  months  ended June 30,
2000.

                                   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.


                                               SWISS ARMY BRANDS, INC.


Date:  August 14, 2000
                                               By /s/
                                               Name:  Thomas M. Lupinski
                                               Title:    Senior Vice President &
                                               Chief Financial Officer,
                                               Secretary and Treasurer