<PAGE>

                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

                                  FORM 10-QA

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

                  For the quarterly period ended June 3, 1995

                                      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 0-21940
                                               -------

                                Donnkenny, Inc.
            (Exact name of registrant as specified in its charter)

                    Delaware                     51-022889
        -------------------------------       ----------------
        (State or other jurisdiction of       (I.R.S. Employer
         incorporation or organization)      Identification No.)

               1411 Broadway, New York, NY            10018
         -----------------------------------------------------
         (Address of principal executive offices)   (Zip Code)

       Registrant's telephone number, including area code (212) 730-7770
                                                          --------------

                                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), Yes _X_ No ___ and (2) has been
subject to such filing requirements for the past 90 days. Yes X  No   .
                                                             ---   ---

     Indicate the number of shares outstanding of each of the issuer's classes
of Common Stock, as of the latest practicable date.

      Common Stock $0.01 par value        13,645,640 (adjusted for split)
      ----------------------------        -------------------------------
                (Class)                    (Outstanding at June 3, 1995)


<PAGE>


                       DONNKENNY, INC. AND SUBSIDIARIES

                  INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
                                 (FORM 10-QA)

<TABLE>
<CAPTION>
                                                                                     Page
                                                                                     ----
<S>                                                                                  <C>
PART I  - FINANCIAL INFORMATION

Consolidated financial statements:

        Balance sheets as of June 3, 1995 (unaudited) and December 3, 1994 ........    I-1

        Statements of operations for the three months and the six months ended
        June 3, 1995 and June 4, 1994 (unaudited) .................................   II-1

        Statements of cash flows for the six months ended
        June 3, 1995 and June 4, 1994 (unaudited) .................................  III-1

        Notes to consolidated financial statements.................................   IV-1

        Management's Discussion and Analysis of Financial Condition and
        Results of Operations .....................................................    V-1

PART II - OTHER INFORMATION .......................................................   VI-1

        Signatures ................................................................   VI-2
</TABLE>

<PAGE>

                       DONNKENNY, INC. AND SUBSIDIARIES

                          Consolidated Balance Sheets
                                (In Thousands)
                       June 3, 1995 and December 3, 1994

<TABLE>
<CAPTION>
                                                                          June 3,   December 3,
                                                                           1995        1994
                                                                       -----------  -----------
                                                                        (Restated
                                                                        unaudited)   (Restated)
<S>                                                                    <C>          <C>
                                              ASSETS
CURRENT:
     Cash                                                                $  1,153     $  1,606
     Accounts receivable - net of allowances of
     $971 and $881 in 1995 and 1994, respectively                          12,511       34,349
     Recoverable income taxes                                               4,188        2,308
     Inventories (Note 2)                                                  48,595       34,458
     Deferred tax assets                                                    1,330        1,330
     Prepaid expenses and other current assets                              1,369        1,260
                                                                         --------     --------

                                       TOTAL CURRENT ASSETS                69,146       75,311

Property, plant and equipment, net                                          9,417        9,552
Intangible assets                                                          23,947       24,316
                                                                         --------     --------

Total Assets                                                             $102,510     $109,179
                                                                         ========     ========

                               LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT:
     Current portion of long-term debt                                   $     89     $     85
     Accounts payable                                                       9,546       16,959
     Accrued expenses and other current liabilities                         4,874        3,975
                                                                         --------     --------

                                    TOTAL CURRENT LIABILITIES              14,509       21,019

Long-term debt, net of current portion                                     28,816       28,230

Deferred income taxes                                                       2,104        2,104

STOCKHOLDERS' EQUITY:
    Common stock, $.01 par value.  Authorized 20,000 shares;
    issued and outstanding 13,644 and 13,644
    shares in 1995 and 1994, respectively                                     137          137
    Additional paid-in capital                                             43,585       43,585
    Retained earnings                                                      13,359       14,104
                                                                         --------     --------
         Total stockholders' equity                                        57,081       57,826

Total Liabilities and Stockholders' Equity                               $102,510     $109,179
                                                                         ========     ========
</TABLE>

See accompanying notes to consolidated financial statements.

                                     I - 1

<PAGE>

                       DONNKENNY, INC. AND SUBSIDIARIES

                     Consolidated Statements of Operations
                (In Thousands, Except Share and Per Share Data)
                                  (Unaudited)


<TABLE>
<CAPTION>
                                                            Three Months Ended               Six Months Ended
                                                       ----------------------------   -----------------------------
                                                           6/3/95         6/4/94          6/3/95          6/4/94
                                                       ------------    ------------   -------------    ------------
                                                         (Restated)     (Restated)      (Restated)      (Restated)
<S>                                                    <C>             <C>             <C>             <C>
Net sales                                              $     20,893    $     32,717    $     45,595    $     59,603

Cost of sales                                                14,173          22,469          32,503          40,706

                                                       ------------    ------------    ------------    ------------
     Gross profit                                             6,720          10,248          13,092          18,897

Selling, general and administrative expenses                  6,944           6,209          12,691          11,866

Amortization of goodwill
and other related acquisition costs                             175             305             376             610

Gain on sale of license (note 4)                               --              --              --             1,116

                                                       ------------    ------------    ------------    ------------
     Operating (loss) income                                   (399)          3,734              25           7,537

Interest expense                                                568             714           1,239           1,484

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

     (Loss) income before income taxes                         (967)          3,020          (1,214)          6,053

Income tax (benefit) provision                                 (376)          1,223            (469)          2,445
                                                       ------------    ------------    ------------    ------------

    Income before extraordinary item                           (591)          1,797            (745)          3,608
                                                       ------------    ------------    ------------    ------------

Extraordinary item (note 3)                                    --               295            --               295
                                                       ------------    ------------    ------------    ------------

    Net (loss) income                                  $       (591)   $      1,502    $       (745)   $      3,313
                                                       ============    ============    ============    ============


Income per common share:
    Net (loss) income before extraordinary item        $      (0.04)   $       0.13    $      (0.05)   $       0.28
    Extraordinary item                                         --             (0.02)           --             (0.02)
                                                       ------------    ------------    ------------    ------------
    Net (loss) income per common share                 $      (0.04)   $       0.11    $      (0.05)   $       0.26
                                                       ============    ============    ============    ============

Weighted average number of common shares outstanding
and common stock equivalents                             13,645,640      13,238,962      13,645,640      12,928,138
                                                       ============    ============    ============    ============
</TABLE>


See accompanying notes to consolidated financial statements.

                                    II - 1
<PAGE>

                       DONNKENNY, INC. AND SUBSIDIARIES

                     Consolidated Statements of Cash Flows
                                (In Thousands)
                                  (Unaudited)
<TABLE>
<CAPTION>
                                                                                  SIX MONTHS ENDED
                                                                             -------------------------
                                                                               June 3,        June 4,
                                                                                1995           1994
                                                                             ----------     ----------
                                                                             (Restated)     (Restated)
<S>                                                                          <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net (loss) income before extraordinary item                                $   (745)      $  3,608
  Extraordinary item                                                             --             (295)

  Adjustments to reconcile net income to net cash provided by operating
    activities:
    Depreciation and amortization of fixed assets                                 547            505
    Amortization of intangibles                                                   376            610
    Accretion of debt discount                                                      6             18
    Provision for losses on accounts receivable                                   306             50
    Changes in assets and liabilities:
        Decrease in accounts receivable                                        21,532          8,152
        Increase in recoverable income taxes                                   (1,880)          (710)
        Increase in inventories                                               (14,137)       (10,493)
        (Increase) decreases in prepaid expenses and
        other current assets                                                     (116)            69
        Decrease in other assets                                                 --              243
        (Decrease) increases in accounts payable                               (7,413)           799
        Increase (decrease) in accrued expenses and other
        current liabilities                                                       899         (1,440)
        Decrease in income taxes payable                                         --             (116)
                                                                             --------       --------

              Net cash (used in) provided by operating activities                (625)         1,000
                                                                             --------       --------

CASH FLOWS FROM INVESTING ACTIVITIES:
    Purchase of fixed assets                                                     (412)          (239)
                                                                             --------       --------

              Net cash used in investing activities                              (412)          (239)
                                                                             --------       --------

CASH FLOWS FROM FINANCING ACTIVITIES:
        Repayment of long-term debt                                           (15,416)       (11,215)
        Long-term borrowings                                                   16,000           --
        Net repayments under revolving credit line                               --          (11,000)
        Net borrowings under revolving credit line                               --           11,000
        Net proceeds from secondary offering                                     --           10,667
                                                                             --------       --------

              Net cash provided by (used in) financing activities                 584           (548)
                                                                             --------       --------

NET (DECREASE) INCREASE  IN CASH                                                 (453)           213

CASH, AT BEGINNING OF YEAR                                                      1,606            927
                                                                             --------       --------

CASH, AT END OF QUARTER                                                      $  1,153       $  1,140
                                                                             ========       ========
</TABLE>

See accompanying notes to consolidated financial statements.

                                    III - 1
<PAGE>

                       DONNKENNY, INC. AND SUBSIDIARIES
                  Notes to Consolidated Financial Statements
                     (In Thousands Except Per Share Data)

NOTE 1 - BASIS OF PRESENTATION

        The accompanying unaudited consolidated financial statements have been
prepared by the Company pursuant to the Rules of the Securities and Exchange
Commission ("SEC") and in the opinion of management, include all adjustments,
(consisting of normal recurring accruals) necessary for the fair presentation
of financial position, results of operations and cash flows. 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 such SEC rules. The Company believes the
disclosures made are adequate to make such financial statements not
misleading. The results for the interim periods presented are not necessarily
indicative of the results to be expected for the full year. These financial
statements should be read in conjunction with the Company's December 31, 1996
Form 10-K which includes restated financial information for the 1994 and 1995
fiscal years. Balance sheet data as of December 3, 1994 has been derived from
audited financial statements of the Company.

NOTE 2 - INVENTORIES

Inventories consist of the following:

                          June 3,          December 3,
                           1995               1994
                           ----               ----
                                        (Restated see Note 1)
Raw materials            $ 1,245            $ 8,320
Work-in-process            5,672              4,314
Finished goods            31,678             21,824
                         -------            -------
                         $48,595            $34,458
                         =======            =======

NOTE 3 - PUBLIC OFFERING

On May 5, 1994, the Company completed a public offering of 5,060,000 shares of
common stock of which 1,177,640 shares were sold by the Company and 3,882,360
shares were sold by certain stockholders. The price per share in the offering
of $10.31 resulted in net proceeds of $10,885 to the Company. The net proceeds
were used to repay $10,600 of indebtedness, accrued interest and a prepayment
penalty of $495.

NOTE 4 - GAIN ON SALE OF LICENSE

The Company sold the rights to the Ship 'N Shore trademarks in December, 1993
resulting in a one time pre-tax gain of $1,116 that equates to $0.05 per share
on an after-tax basis during the first quarter of fiscal 1994 and $0.05 per
share on an after-tax basis during the first half of fiscal 1994.

NOTE 5 - SUBSEQUENT EVENTS

On May 15, 1995, the Company signed letters of intent to acquire all the
outstanding stock of Beldoch Industries Corporation, and to purchase certain
assets, inventories and leasehold improvements of Oak Hill Sportswear
Corporation.

                                     IV-1



<PAGE>


NOTE 5 - SUBSEQUENT EVENTS - continued

On June 5, 1995, the Company completed its acquisition of Beldoch Industries
Corporation. Beldoch, is a manufacturer and marketer of moderate and
better-priced women's knitwear, under the Beldoch-Popper, Alberoy and
Knitmakers labels. Beldoch also holds the license for Pierre Cardin women's
wear manufactured in the U.S.

The Company expects to complete the transaction with Oak Hill Sportswear
Corporation during July, 1995.

On June 5, 1995, the Company's loan facility from Chemical Bank was increased
to $85 million from $35 million to finance these acquisitions and the
additional working capital needs of these businesses.

NOTE 6 - STOCK SPLIT

        On November 17, 1995 , the Board of Directors authorized a two-for-one
stock split which was paid to all holders of record on December 4, 1995. All
references in the accompanying consolidated financial statements to number of
shares, per share amounts, and prices of the Company's common stock for
periods prior to December 4, 1995 have been restated to reflect the stock
split.

NOTE 7 - RESTATEMENT OF FINANCIAL INFORMATION

        The Company has restated its financial statements for the years ended
December 2, 1995 and December 3, 1994, as well as the quarters within such
years and the two quarters of fiscal 1996 because of errors discovered for
those periods subsequent to the issuance of such financial statements. The
financial statements for the aforementioned periods required restatement to
correct the reporting for the recognition of net sales, cost of sales and
certain expenses. The third quarter of fiscal 1996 was restated for the 
rescission of the Fashion Avenue acquisition and to reflect additional reserves
for sales returns and allowances.

        The impact of the restatement on the Company's statement of operations
and balance sheets is summarized as follows:




                                    IV - 2

<PAGE>



3 MONTHS ENDED                    June 3, 1995               June 4, 1994
                            -------------------------  ------------------------
                           (As Originally             (As Originally
STATEMENT OF OPERATIONS       Reported)   (Restated)     Reported)   (Restated)
-----------------------       ---------   ----------     ---------   ----------
Net Sales .................   $  40,145   $  20,893      $  33,164   $  32,717
Gross Profit ..............      11,672       6,720          9,956      10,248
Operating Income (Loss) ...       4,253        (399)         3,442       3,734
Net Income (Loss) .........       2,175        (591)         1,333       1,502
Per common share:
       Net Income (Loss) ..   $    0.16   ($   0.04)     $    0.10   $    0.11

6 MONTHS ENDED                    June 3, 1995                June 4, 1994
                            ------------------------   ------------------------
                           (As Originally             (As Originally
STATEMENT OF OPERATIONS       Reported)   (Restated)     Reported)   (Restated)
-----------------------       ---------   ----------     ---------   ----------
Net Sales .................   $  79,275   $  45,595      $  63,724   $  59,603
Gross Profit ..............      23,058      13,092         19,171      18,897
Operating Income ..........       8,492          25          6,695       7,537
Net Income (Loss) .........       4,281        (745)         3,474       3,313
Per common share:
       Net Income (Loss) ..   $    0.31   ($   0.05)     $    0.27   $    0.26


                                  June 3, 1995            December 3, 1994
                            -------------------------  ------------------------
                           (As Originally             (As Originally
BALANCE SHEET                 Reported)   (Restated)     Reported)   (Restated)
--------------                ---------   ----------     ---------   ----------
Current Assets ............   $  76,868   $  69,146      $  77,758   $  75,311
Total Assets ..............     110,232     102,510        111,626     109,179
Total Liabilities .........      45,516      45,429         51,190      51,353
Stockholders' Equity ......      64,716      57,081         60,436      57,826



                                     IV-3




<PAGE>


                        DONNKENNY, INC AND SUBSIDIARIES
          MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                           AND RESULTS OF OPERATIONS

COMPARISON OF SIX MONTHS ENDED JUNE 3, 1995 AND JUNE 4, 1994

     Net sales decreased by $14.0 million from $59.6 million in the first half
of fiscal 1994 to $45.6 million in the first half of fiscal 1995. The decrease
was due to net sales declines in all of the Company's divisions.

     Gross profit for the first half of fiscal 1995 was $13.1 million or 28.7%
of net sales compared to $18.9 million or 31.7% of net sales during the first
half of fiscal 1994. The decrease in gross profit margin was due to a change in
sales mix.

     Selling, general, and administrative expenses increased from $11.9
million in the first half of fiscal 1994 to $12.7 million in the first half of
1995. As a percentage of net sales, these expenses increased from 19.9% in the
first half of fiscal 1994 to 27.8% in the first half of fiscal 1995. This
increase is primarily due to relatively fixed sales and design costs being
measured against lower sales volume.

     The amortization of goodwill and other related acquisition costs were
$0.4 million during the first six months of fiscal 1995 compared to $0.6
million during the first half of fiscal 1994 as certain related acquisition
costs became fully amortized during February, 1995.

The Company sold the rights to the Ship 'N Shore trademarks during the first
quarter of fiscal 1994 resulting in a one-time pre-tax gain of $1.1 million
that equated to $0.05 per share on an after tax basis. There was no
corresponding gain during fiscal 1995.

     Interest expense declined from $1.5 million in the first half of fiscal
1994 to $1.2 million in the first half of fiscal 1995. This was due to reduced
borrowings under the Company's Senior Term Loan with the Prudential Insurance
Company of America, Pruco Life Insurance Company of America, Pruco Life
Insurance and Prudential Reinsurance Company (the "Prudential Senior Term
Loan") which was paid off on February 2, 1995, offset to a certain extent by
higher average borrowings on the Company's line of credit to support higher
working capital needs.

     The Company provided for taxes at an effective rate of 38.6% for the
first half of fiscal 1995 and 40.4% for the first half of fiscal 1994.

COMPARISON OF QUARTERS ENDED JUNE 3,1995 AND JUNE 4, 1994

      Net sales decreased by $11.8 million from $32.7 million in the second
quarter of fiscal 1994 to $20.9 million in the second quarter of fiscal 1995.
The decrease was due to declines in all of the Company's divisions.

      Gross profit for the second quarter of fiscal 1995 was $6.7 million or
32.2% of net sales, compared to $10.2 million or 31.3% of net sales during
the second quarter of fiscal 1994.

      Selling, general and administrative expenses increased from $6.2 million
in the second quarter of fiscal 1994 to $6.9 million in the second quarter of
1995 As a percentage of net sales, these expenses increase from 19.0% in the
second quarter of fiscal 1994 to 33.2% in the second quarter of fiscal 1995.
This increase is primarily due to relatively fixed sales and design costs
being measured against lower sales volume and an increase in administrative
expense.

      The amortization of goodwill and other related acquisition costs were
$0.2 million during the second quarter of fiscal 1995 compared to $0.3 million
during the second quarter of fiscal 1994 as certain related acquisition costs
became fully amortized during February, 1995.

     Interest expense declined from $0.7 million in the second quarter of
fiscal 1994 to $0.6 million in the second quarter of fiscal 1995. This was due
to reduced borrowings under the Company's Senior Term Loan with the Prudential
Insurance Company of America, Pruco Life Insurance Company of America, Pruco
Life Insurance and Prudential Reinsurance Company (the "Prudential Senior Term
Loan") which was paid


                                     V-1


<PAGE>

off on February 2, 1995, and offset to a certain extent by higher average
borrowings on the Company's line of credit to support higher working capital
needs.

The Company provided for taxes at a rate of 38.9% in the second quarter of
1995 and 40.5% in the second quarter of 1994.

LIQUIDITY AND CAPITAL RESOURCES

The Company's liquidity requirements arise from the funding of working capital
needs, primarily inventory and accounts receivable, and the interest and
principal payments related to certain indebtedness. The Company utilized the
net proceeds from its second public offering, which closed on May 5, 1994, to
repay $10.6 million of debt, accrued interest and a prepayment penalty owing
pursuant to the Prudential Senior Term Loan. This payment reduced interest
expense, which was partially offset by increased average borrowings on the
Company's line of credit to support higher working capital needs. The
Company's borrowing requirements for working capital fluctuate throughout the
year.

     Capital expenditures were $0.4 million in the first half of 1995 compared
to $0.2 in the first half of 1994. The Company may spend up to $2.0 million
annually on capital investments in accordance with the Chemical Bank Revolving
Credit Agreement described below. The Company has no material capital
expenditure commitments.

  During the first half of fiscal 1995, the Company's operating activities
used cash principally as the result of decreases in net income and accounts
payable and increases in inventory which more than offset the cash generated
by decreases in accounts receivable. During the first half of fiscal 1994, the
Company's operating activities generated cash principally as the result of
increases in net income and decreases in accounts receivable which offset
increases in inventories. The Company believes that amounts available under
its Chemical Bank revolving credit agreement will be sufficient to offset any
negative operating cash flows and capital expenditures and to provide the
Company with sufficient cash for its needs for the foreseeable future.

    On February 2, 1995, the Company entered into a new three year, $35.0
million secured revolving credit facility from Chemical Bank which replaced a
$25.0 million secured line of credit facility with Chemical Bank. On February
2, 1995, the Company drew down on the new Chemical bank revolving credit
facility to make a final principal payment of $12.4 million to retire the
prudential Senior Term Loan. The new Chemical Loan facility requires
compliance with certain financial performance tests on a quarterly basis that
the Company expects to be able to meet. As of June 3, 1995, $6.5 million was
available under the Chemical Bank line of credit facility. As indicated above
in Note 5 - Subsequent Events, on June 5, 1995, the Company's loan facility
with Chemical bank was increased from $35.0 million to $85.0 million.


                                     V-2


<PAGE>
                       DONNKENNY, INC. AND SUBSIDIARIES

                          PART II. OTHER INFORMATION

Item 1.  Legal Proceedings.

         Not applicable.

Item 2.  Changes in Securities.

         Not applicable.

Item 3.  Defaults Upon Senior Securities.

         Not applicable.

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

         The Company's annual meeting of stockholders was held on April 19,
1995. The following directors were elected:

         NAME                          FOR               WITHOLDING AUTHORITY
         ----                          ---               --------------------
         Harvey Appelle             5,496,899                   145,999
         James Crystal              5,498,399                   144,449
         Sidney Egale               5,498,399                   144,449
         Harvey Horowitz            5,498,399                   144,449
         Richard Rubin              5,498,399                   144,449

The appointment of KPMG Peat Marwick as independent auditors for the fiscal
year ended December 2, 1995 was ratified with 5,607,798 shares voting in
favor, 3,700 shares against and 31,400 shares abstaining

The amendment to the Donnkenny, Inc. 1992 Stock option Plan to set the maximum
number of shares underlying options that any one person may be granted in any
year at 150,000 and to confirm that directors (in their capacity as such) are
not eligible to participate in such plan was approved with 4,695,438 shares
voting in favor, 799,800 shares against and 97,450 shares abstaining.

Item 5.  Other Information.

         Not applicable.

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

On June 2, 1995, the Company filed a Form 8-K dated May 23, 1995 reporting
that the Company had on May 23, 1995 entered into an agreement with Oak Hill
Sportswear Corporation ("Oak Hill") to acquire certain assets of Oak Hill. On
May 26, 1995 the company had entered into an agreement to acquire all of the
stock of Beldoch Industries Corporation. Copies of such agreement were filed
as exhibits to the Form 8-K.




                                    VI - 1


<PAGE>

                              S I G N A T U R E S



        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.





                                           DONNKENNY, INC.
                                           --------------------------------
                                           Registrant



Date: June 11, 1997
     -------------------------
                                           --------------------------------
                                           Harvey Appelle
                                           Chairman of the Board, President and
                                           Chief Executive Officer




Date: June 11, 1997
     -------------------------             --------------------------------
                                           Stuart S. Levy
                                           Vice President - Finance and
                                           Chief Financial Officer
                                           (Principal Financial Officer)




                                    VI - 2