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 September 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 November 13, 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
               September  30, 2000 (unaudited) and December 31, 1999.     3 - 4

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

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

               Consolidated Statements of Cash Flows for the
               Nine Months Ended September 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 - 14


Item 3.        QUANTITATIVE AND QUALITATIVE DISCLOSURES
               ABOUT MARKET RISK                                             14



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

Item 6.        EXHIBITS AND REPORTS ON FORM 8-K                              14

Signatures                                                                   15

The Exhibit Index appears on page 14.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>

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


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

Current assets:
   Cash and cash equivalents                     $  5,182              $  1,302

   Accounts receivable, less
    allowance for doubtful accounts
    of $1,060 for both periods                     28,970                33,718

   Inventories                                     41,139                30,227

   Deferred income taxes                            2,242                 2,235

   Prepaid and other                                5,451                 3,058
                                                 ---------             ---------
      Total current assets                         82,984                70,540
                                                 ---------             ---------
Deferred income taxes                               1,460                 1,474

Property, plant and equipment, net                  7,077                 4,856

Investments                                         7,308                 4,476

Intangible assets, net                             12,767                11,548

Other assets, net                                  14,915                14,710
                                                 ---------             ---------
Total Assets                                     $126,511              $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)
                      Liabilities and Stockholders' Equity


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

Current liabilities:

   Current portion of long-term debt          $  1,473                 $    875

   Accounts payable                             10,767                    7,732

   Accrued liabilities and other                 9,212                   10,562
                                              ---------                ---------
   Total current liabilities                    21,452                   19,169
                                              ---------                ---------
Long-term liabilities:
    Long-term debt                              19,236                   11,362

    Other                                          919                      693
                                              ---------                ---------
    Total Liabilities                           41,607                   31,224
                                              ---------                ---------
Minority interest                                5,611                      -
                                              ---------                ---------

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                   49,006                   49,137

   Accumulated other comprehensive
     income (loss)                                 639                     (401)

   Retained earnings                            36,796                   35,576
                                              ---------                 --------
                                                87,338                   85,198

   Less:  Treasury stock:  905,734 and
          1,014,108, respectively               (8,003)                  (8,711)

          Deferred compensation                    (42)                    (107)
                                              ----------                --------
Total stockholders' equity                      79,293                   76,380
                                              ----------                --------
Total Liabilities and Stockholders' Equity    $126,511                 $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 per share data)
                                   (unaudited)

                                Three Months Ended             Nine Months Ended
                                  September 30,                  September 30,
                              2000            1999          2000           1999
                              ----            ----          ----           ----
<S>                        <C>             <C>           <C>           <C>

Net revenues                $32,719         $33,026       $87,644       $86,992

Cost of sales                19,920          20,228        53,380        53,255
                            --------        --------      --------      --------
Gross profit                 12,799          12,798        34,264        33,737

Selling, general and
administrative expenses      11,203          11,210        32,930        32,530
                            --------        --------      --------      --------
Operating income              1,596           1,588         1,334         1,207

Interest income
  (expense), net               (294)           (235)         (852)         (371)

Investment gain (loss), net     -               -           1,583        (2,280)
                            --------        --------      --------      --------
Total other income
(expense), net                 (294)           (235)          731        (2,651)
                            --------        --------      --------      --------
Income (loss) before
income taxes                  1,302           1,353         2,065        (1,444)

Income tax provision            525             587           857           269

Minority interest               (12)            -             (12)          -
                            --------        --------      ---------     --------
Net income (loss)              $789            $766        $1,220       ($1,713)
                            ========        ========      =========     ========

Earnings per share:
   Basic                      $0.10           $0.10         $0.15        ($0.22)
                              =====           =====         =====        =======
   Diluted                    $0.10           $0.10         $0.15        ($0.22)
                              =====           =====         =====        =======

Weighted average number of
   shares outstanding:
   Basic                      8,037           7,854         7,943         7,864
                             ======          ======        ======        ======
   Diluted                    8,250           8,048         8,157         7,864
                             ======          ======        ======        ======
</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 NINE MONTHS ENDED SEPTEMBER 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                        -           -            -                -          (1,713)        -         ($1,713)
   Change in unrealized gain
     on marketable securities       -           -            -              (781)           -           -            (781)
   Foreign currency
     translation adjustment         -           -            -               155            -           -             155
                                                                                                                   -------
Comprehensive loss                                                                                                ($2,339)
                                                                                                                   =======
Acquisition of Bear MGC
  Cutlery, Inc.                     -           -          1,500              -             -           -
Repurchase of
    common stock                    -           -            -                -             -          (517)
Stock options exercised            10,000         1           53              -             -           -
                               -----------    ------     --------         -------       ---------    --------
BALANCE
September 30, 1999
(unaudited)                     8,868,218      $886      $48,025           ($449)       $33,743     ($8,711)
                               ===========    ======     ========         =======       =========   =========
BALANCE
December 31, 1999               8,866,218      $886      $49,137           ($401)       $35,576     ($8,711)

Comprehensive income:
   Net income                       -           -            -               -            1,220         -          $1,220
   Foreign currency
      translation adjustment        -           -            -              (208)           -           -            (208)
   Change in unrealized gain
      in  marketable securities     -           -            -             1,248            -           -           1,248
                                                                                                                   -------
Comprehensive income                                                                                               $2,260
                                                                                                                   =======
Issuance of common stock          106,112        11          (11)            -              -           -
Acquisition of Xantia, S.A.         -           -           (110)            -              -           708
Cancellation of stock grant        (1,250)      -            (10)            -              -           -
                              ------------   ------       --------       --------       ---------    --------
BALANCE
Septmber 30, 2000
(unaudited)                     8,971,080     $ 897     $ 49,006            $639        $36,796     ($8,003)
                              ============   ======      =========       ========       =========    ========

</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)


                                                            Nine months ended
                                                              September 30,
                                                           2000            1999
                                                           ----            ----
<S>                                                      <C>           <C>

Cash flows from operating activities:
   Net income (loss)                                      $ 1,220      ($ 1,713)
   Adjustments to reconcile net income (loss) to cash
   provided from (used in) operating activities:
      Minority interest                                       (12)          -
      Depreciation and amortization                         2,330         2,389
      Stock compensation expense                               55            55
      Deferred income taxes                                     7          (298)
      Investment (gain) loss, net                          (1,583)        2,280
                                                         ---------      --------
                                                            2,017         2,713
Changes in other current assets and liabilities:
   Accounts receivable                                      5,290         3,099
   Inventories                                             (8,319)       (8,147)
   Prepaid and other                                       (2,384)        2,651
   Accounts payable                                         3,204        (5,184)
   Accrued liabilities                                     (1,581)         (556)
                                                         ---------      --------
       Net cash used in operating activities               (1,773)       (5,424)
                                                         ---------      --------
Cash flows from investing activities:
   Acquisition of Xantia, S.A., net of cash acquired       (1,296)          -
   Acquisition of Bear MGC Cutlery, Inc., net of
     cash acquired                                            -          (7,976)
   Capital expenditures                                      (518)       (1,190)
   Other assets                                              (592)       (2,031)
   Proceeds from sale of investment                           -           1,972
                                                         ---------      --------
         Net cash used in investing activities             (2,406)       (9,225)
                                                         ---------      --------
Cash flows from financing activities:
  Borrowings under debt agreements                        45,967         47,580
  Repayments under debt agreements                       (37,368)       (33,730)
  Repurchase of common stock                                 -             (517)
  Proceeds from exercise of stock options                    -               54
                                                         ---------      --------
      Net cash provided from financing activities          8,599         13,387
                                                         ---------      --------
Effect of exchange rate changes on cash                     (540)           (47)
                                                         ---------      --------
Net increase (decrease) in cash and cash equivalents       3,880         (1,309)
   Cash and cash equivalents, beginning of period          1,302          1,309
                                                         ---------      --------
   Cash and cash equivalents, end of period               $5,182         $  -
                                                         =========      ========
Cash paid during the period:
   Interest                                               $  782         $  330
                                                         =========      ========
   Income taxes                                           $  300         $  425
                                                         =========      ========
</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
                          SEPTEMBER 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 financial
statements  and notes thereto  included in the  Company's  Annual 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.

ACQUISITION
-----------
     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  Michel  and Irene  Thievent  (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.

     Pursuant to the Agreements, the Company paid at the closing 2,250,000 Swiss
Francs  ("CHF")  ($1,354,500)  and delivered  108,374  shares of the Company's
common  stock  ("Common  Stock"),  such shares  being valued for purposes of the
Agreements at 1,000,000 CHF ($598,000).  At the closing,  Victorinox paid to the
Sellers  3,250,000 CHF  ($1,943,500).  Each of the Company and  Victorinox  also
agreed  to pay an  additional  12,000,000  CHF 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.

The source of funds for the acquisition by the Company was a bank line of credit
from the Company's existing lender.
<PAGE>

     The purchase method of accounting was used to account for the  acquisition.
The aggregate purchase price has been allocated to the assets and liabilities of
Xantia based on  preliminary  estimates of fair market  value.  Any  adjustments
resulting  from the final  purchase  price  allocation,  which  could  result in
changes to the carrying values of assets and  liabilities,  including  goodwill,
are not expected to be material to the consolidated  financial  statements.  The
purchase price, including amounts paid or owed by Victorinox and the issuance of
the Common Stock, has resulted in acquired  goodwill and other intangible assets
of approximately $2.1 million, which is being amortized on a straight-line basis
over 20 years.  The  following is a summary of the  preliminary  allocation  (in
thousands):
<TABLE>

              <S>                                   <C>
               Cash..................................... $4,127
               Accounts receivable......................  2,015
               Inventory................................  3,102
               Other current assets.....................     25
               Plant and equipment......................  2,808
               Intangible assets and goodwill...........  2,148
               Accrued expenses and other liabilities... (2,441)
                                                        --------
                                                        $11,784
                                                        ========
</TABLE>

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

    Investments consist of the following:
                                        September 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)          2,832                -
         Preferred units of
            Victory Ventures LLC (C)                851                851
         Common stock of Chaparral Resources,
            Inc. (D)                                 12                 12
                                                --------           --------
Total investments                                $7,308             $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.

(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
stockholders' equity.
<PAGE>

(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 September 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.


INCOME TAXES
------------
     Income taxes are provided at the projected  annual  effective tax rate. The
income tax benefit for the nine months  ended  September  30, 1999 is lower than
the federal  statutory rate of 34% as the Company has taken limited tax benefits
on the capital loss  write-down of the Hudson River  investment.  The income tax
provisions  for the periods ended  September 30, 2000 and the three month period
ended September 30, 1999, exceed the federal statutory rate of 34% due primarily
to state income taxes (net of federal benefit).

EARNINGS PER SHARE
------------------
     For the nine month period ended  September 30, 1999,  the weighted  average
number of shares of common stock  outstanding do not include the effect of stock
options as they would have had an anti-dilutive effect.

RECENT ACCOUNTING PRONOUNCEMENT
-------------------------------
     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.

LINE OF CREDIT
--------------
     In connection with the acquisition of Xantia, on July 24, 2000, the Company
amended its line of credit agreement, which among other things, added a new term
loan of $1.6 million. The term loan is repayable at $22,222 per month over a six
year period.

<PAGE>

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

Comparison of the Three Months Ended September 30, 2000 and 1999
----------------------------------------------------------------

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

                  Product sales, net                  $32,253          $33,026
                  Royalty income                          466              -
                                                      -------          -------
                                                      $32,719          $33,026
                                                      =======          =======
</TABLE>

     Product  sales for the three  months  ended  September  30, 2000 were $32.3
million compared with $33.0 million for the same period in 1999,  representing a
decrease of $0.8  million or 2.3%.  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  and sales  related to
Xantia,  in which the  Company  acquired a  controlling  interest  in July 2000.
Royalty income relates to the licensing program of Victorinox Travel Gear, which
was introduced in the fourth quarter of 1999.

     Gross profit of $12.8 million for the three months ended September 30, 2000
was even with the amount for the  comparable  period in 1999.  The gross  profit
margin  percentage  for the third  quarter of 2000 of 39.1% was higher  than the
gross profit  margin  percentage  of 38.8%  reported for the same period in 1999
primarily  because  royalty  income  revenues  have a higher  gross  margin than
product sales and due to an increase in the value of the U.S.  dollar versus the
Swiss franc,  offset  partially by unfavorable  product mix. The Company's gross
profit margin is a function of both product mix (including  royalty  income) and
Swiss franc exchange rates.

     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
and 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.
<PAGE>

     Selling,  general and  administrative  expenses  for the nine months  ended
September 30, 2000 of $11.2 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 33.9% in 1999 to 34.2% in 2000.

     Interest  income  (expense) and other,  net was expense of $294,000 for the
three months ended  September 30, 2000,  compared to expense of $235,000 for the
comparable period in 1999 primarily due to increased  borrowings  related to the
acquisition of Xantia.

     As a result of these  changes,  income  before  income  taxes for the three
months ended  September 30, 2000 was $1,302,000  versus  $1,353,000 for the same
period in 1999, a decrease of $51,000.

     Income tax expense was provided at an effective  rate of 40.3% and 43.4% in
2000 and 1999, respectively.

     As a result,  net income for the three months ended  September 30, 2000 was
$789,000  ($0.10 per  share-basic  and diluted) versus $766,000 ($0.10 per share
-basic and diluted) for the same period in 1999, an increase of $23,000.

<TABLE>
<CAPTION>

Comparison for the Nine Months Ended September 30, 2000 and 1999
----------------------------------------------------------------

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

                  Product sales, net                    $86,674         $86,992
                  Royalty income                            970             -
                                                        -------         -------
                                                        $87,644         $86,992
                                                        =======         =======
</TABLE>

     Product  sales for the nine  months  ended  September  30,  2000 were $86.9
million compared with $87.0 million for the same period in 1999, representing an
decrease  of $0.1  million or 0.2%.  The sales  decrease  was due to lower watch
sales,  offset  partially by the sales  related to Bear Cutlery,  Inc.  ("Bear")
which was acquired in April 1999,  an increase in sales of  Victorinox  products
and sales related to Xantia.  Royalty income relates to the licensing program of
Victorinox Travel Gear, which was introduced in the fourth quarter of 1999.

     Gross profit of $34.3 million for the nine months ended  September 30, 2000
increased by $0.6 million or 1.6% from 1999. The gross profit margin  percentage
for the nine  months of 2000 of 39.1% was higher  than the gross  profit  margin
percentage  of 38.8%  reported  for the same  period in 1999  primarily  because
royalty income revenues have a higher gross margin than product sales and due to
an  increase  in the value of the U.S.  dollar  versus the Swiss  franc,  offset
partially by unfavorable product mix.

     Selling,  general and  administrative  expenses  for the nine months  ended
September  30, 2000 of $32.9  million  were $0.4 million or 1.2% 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 37.4% in 1999 to 37.6% in 2000.

     Interest  income  (expense) and other,  net was expense of $852,000 for the
nine months  ended  September  30, 2000  compared to $371,000 in the  comparable
period in 1999 due to increased  borrowings  related to the  acquisition of Bear
and Xantia.
<PAGE>

     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 the 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
nine months ended  September 30, 2000 was income of $2,065,000  versus a loss of
$1,444,000 for the same period in 1999, an increase of $3,509,000.

     Income tax expense (benefit) was provided at an effective rate of 41.1% and
18.6% in 2000 and  1999,  respectively.  The  income  tax  benefit  for 1999 was
significantly  lower than the statutory  rate of 34% as the Company took limited
tax benefits on the capital loss write-down of the Highgate Captial investment.

     As a result, net income (loss) for the nine months ended September 30, 2000
was income of $1,220,000  ($0.15 per share - basic and diluted) versus a loss of
$1,713,000 ($0.22 per share - basic and diluted) for the same period in 1999, an
increase of $2,933,000.

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

     As of September 30, 2000, the Company had working  capital of $61.5 million
compared  with $51.4  million as of  December  31,  1999,  an  increase of $10.1
million.   The  increase  was  primarily  due  to  the  acquisition  of  Xantia.
Significant  uses of working  capital  included  capital   expenditures  of $0.5
million and additions to other assets of $0.6 million. The Company currently has
no material commitments for capital expenditures.

     Cash used in operating  activities  was  approximately  $1.8 million in the
nine months  ended  September  30,  2000  compared  with cash used in  operating
activities of $5.4 million in the comparable period in 1999. The change resulted
primarily  from a larger  decrease in  receivables  in 2000 compared to 1999, an
increase in accounts  payable in 2000 as compared to a decrease in 1999,  offset
partially  by an increase in other  current  assets in 2000 versus a decrease in
1999.

     The Company meets its short-term  liquidity  needs with cash generated from
operations,  and, when necessary,  bank borrowings under its bank agreement. The
Company  currently has a $16.0 million line of credit,  of which  $9,400,000 was
outstanding as of September 30, 2000.  This line of credit expires in June 2001.
The  Company  expects  to renew the line of  credit  with  terms and  conditions
consistent  with the existing line of credit.  Also,  the Company has $7,849,000
outstanding  under  its term  loans as of  September  30,  2000.  The  Company's
short-term  liquidity  is affected by  seasonal  changes in sales and  inventory
levels.  The  Company  believes  its  current  liquidity  levels  and  financial
resources  continue to be sufficient  to meet its  operating  needs for the next
twelve months.


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 the majority of 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 September  30, 2000,  the
Company has entered  into  foreign  currency  contracts  and options to purchase
approximately  71.9 million Swiss francs in 2000 and 2001 at a weighted  average
rate $1.547 Swiss  franc/dollar.  At September 30, 2000, the unrealized  loss on
these  contracts  and options was  approximately  $4.8  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.
<PAGE>


                           PART II OTHER INFORMATION
                           -------------------------

Exhibits and Reports on Form 8-K

A) Exhibits

2.1  Share  Purchase  Agreement,   dated  as  of  June  23,  2000  (the  "Xantia
Agreement"),  by and among the Company, Swiss Army Brands CH, Inc. (the "Buyer")
and Michel and Irene  Thievent  (collectively,  the  "Sellers")  with respect to
Xantia,  S.A.  Fabrique  de Montres  Precision  ("Xantia")  ;  incorporated  by
reference to Exhibit 2.1 to the  Company's  Current  Report on Form 8-K filed on
August 7, 2000.

2.2 Amendment to the Xantia  Agreement,  dated as of July 10, 2000, by and among
the the Buyer, and the Sellers;  incorporated by reference to Exhibit 2.2 to the
Company's Current Report on Form 8-K filed on August 7, 2000.

2.3 Second Amendment to the Xantia Agreement,  dated as of July 24, 2000, by and
among the Company,  the Buyer,  the Sellers and Victorinox  AG;.incorporated  by
reference to Exhibit 2.3 to the  Company's  Current  Report on Form 8-K filed on
August 7, 2000.

(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

B) The Company  filed a report on Form 8-K on August 7,2000 and a report on Form
8K/A on October 6, 2000 related to the  acquisition of Xantia for items 2 and 7,
including historical financial statemtents and pro forma financial information.



SIGNATURES:


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