<Page>
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                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

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

                                   FORM 10-Q

(MARK ONE)

<Table>
<C>        <S>
   /X/     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
           SECURITIES EXCHANGE ACT OF 1934
</Table>

                  FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2001
                                       OR

<Table>
<C>        <S>
   / /     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
           SECURITIES EXCHANGE ACT OF 1934
</Table>

        FOR THE TRANSITION PERIOD FROM ______________ TO ______________

                        COMMISSION FILE NUMBER 001-14843

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

                           THE BOYDS COLLECTION, LTD.

             (Exact Name of Registrant as Specified in its Charter)

<Table>
<S>                                             <C>
                MARYLAND                                     52-1418730
    (State or Other Jurisdiction of             (I.R.S. Employer Identification No.)
     Incorporation or Organization)

    350 SOUTH STREET, MCSHERRYSTOWN,
  PENNSYLVANIA, ATTN.: PETER H. FROST                          17344
(Address of Principal Executive Offices)                     (Zip Code)
</Table>

                                 (717) 633-9898
              (Registrant's Telephone Number, Including Area Code)

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 / /

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date:

<Table>
<S>                                            <C>
  COMMON STOCK, PAR VALUE $.0001 PER SHARE                      59,091,460
                   (Class)                           (Outstanding as of July 27, 2001)
</Table>

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<Page>
                           THE BOYDS COLLECTION, LTD.
                               TABLE OF CONTENTS

<Table>
<Caption>
                                                                          PAGE
                                                                        --------
<S>       <C>                                                           <C>
PART I.   FINANCIAL INFORMATION

ITEM 1.   FINANCIAL STATEMENTS:

          Condensed Consolidated Balance Sheets as of December 31,
          2000 and June 30, 2001......................................      3

          Condensed Consolidated Statements of Income for the Three
          Months and the Six Months Ended June 30, 2000 and 2001......      4

          Condensed Consolidated Statement of Stockholders' Equity for
          the Six Months Ended June 30, 2001..........................      5

          Condensed Consolidated Statements of Cash Flows for the Six
          Months Ended June 30, 2000 and 2001.........................      6

          Notes to Condensed Consolidated Financial Statements........      7

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
          AND RESULTS OF OPERATIONS...................................     11

ITEM 3.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
          RISK........................................................     17

PART II.  OTHER INFORMATION...........................................     18

ITEM 1.   LEGAL PROCEEDINGS...........................................     18

ITEM 2.   EXHIBITS AND REPORTS ON FORM 8-K............................     18

          SIGNATURES..................................................     19
</Table>

                                       2
<Page>
                                     PART I
                             FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS.

                           THE BOYDS COLLECTION, LTD.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
        AS OF DECEMBER 31, 2000 (AUDITED) AND JUNE 30, 2001 (UNAUDITED)

<Table>
<Caption>
                                                              DECEMBER 31,   JUNE 30,
                                                                  2000         2001
                                                              ------------   --------
                                                                  (IN THOUSANDS)
<S>                                                           <C>            <C>
ASSETS
CURRENT ASSETS:
  Cash and cash equivalents.................................    $  3,191     $     95
  Accounts receivable, less allowance for doubtful accounts
    of $2,466 at December 31, 2000 and $2,086 at June 30,
    2001....................................................      20,412       20,347
  Inventory--primarily finished goods, less allowance for
    obsolete inventory of $645 at December 31, 2000 and
    $2,141 at June 30, 2001.................................      12,865       13,045
  Inventory in transit......................................       3,102        1,694
  Other current assets......................................         804          728
  Income taxes receivable...................................       5,630        2,456
  Deferred income taxes.....................................      18,672       18,672
                                                                --------     --------
    Total current assets....................................      64,676       57,037
PROPERTY AND EQUIPMENT--NET.................................       5,635        7,100
OTHER ASSETS:
  Deferred debt issuance costs..............................       3,912        3,557
  Deferred tax asset........................................     186,371      179,811
  Other assets..............................................       2,719        3,162
                                                                --------     --------
    Total other assets......................................     193,002      186,530
                                                                --------     --------
TOTAL ASSETS................................................    $263,313     $250,667
                                                                ========     ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
  Accounts payable..........................................    $  2,481     $  1,546
  Accrued expenses..........................................       4,016        3,208
  Interest payable..........................................       1,933        1,590
  Current portion of long-term debt (Note 4)................       6,250       14,000
                                                                --------     --------
    Total current liabilities...............................      14,680       20,344
LONG-TERM DEBT (Note 4).....................................     187,157      149,541
COMMITMENTS AND CONTINGENCIES (Notes 2, 4 and 6)
OTHER LIABILITIES...........................................         190          190
STOCKHOLDERS' EQUITY:
  Common stock (61,838 shares issued at December 31, 2000
    and June 30, 2001) and paid-in capital in excess of
    par.....................................................     (41,133)     (41,137)
  Accumulated other comprehensive loss......................          (7)          (6)
  Retained earnings.........................................     128,775      148,552
  Less: Treasury shares at cost (2,685 at December 31, 2000
    and 2,752 at June 30, 2001).............................     (26,349)     (26,817)
                                                                --------     --------
    Total stockholders' equity..............................      61,286       80,592
                                                                --------     --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY..................    $263,313     $250,667
                                                                ========     ========
</Table>

           See notes to condensed consolidated financial statements.

                                       3
<Page>
                           THE BOYDS COLLECTION, LTD.
                  CONDENSED CONSOLIDATED STATEMENTS OF INCOME
      FOR THE THREE MONTHS AND THE SIX MONTHS ENDED JUNE 30, 2000 AND 2001
                                  (UNAUDITED)

<Table>
<Caption>
                                                          THREE MONTHS ENDED     SIX MONTHS ENDED
                                                               JUNE 30,              JUNE 30,
                                                          -------------------   -------------------
                                                            2000       2001       2000       2001
                                                          --------   --------   --------   --------
                                                          (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<S>                                                       <C>        <C>        <C>        <C>
NET SALES...............................................  $39,276    $27,350    $91,959    $77,725
COST OF GOODS SOLD......................................   13,866      9,718     33,285     27,721
                                                          -------    -------    -------    -------
  GROSS PROFIT..........................................   25,410     17,632     58,674     50,004
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Notes 3
  and 7)................................................    5,358      6,161     10,861     10,928
                                                          -------    -------    -------    -------
INCOME FROM OPERATIONS..................................   20,052     11,471     47,813     39,076
                                                          -------    -------    -------    -------
OTHER INCOME/(EXPENSE)..................................       60        (55)       190        (23)
INTEREST EXPENSE:
  Interest expense......................................    4,045      3,074      9,345      6,763
  Amortization of deferred debt issuance costs..........      181        155        358        318
                                                          -------    -------    -------    -------
TOTAL INTEREST EXPENSE..................................    4,226      3,229      9,703      7,081
                                                          -------    -------    -------    -------
INCOME BEFORE PROVISION FOR INCOME TAXES AND
  EXTRAORDINARY ITEM....................................   15,886      8,187     38,300     31,972
PROVISION FOR INCOME TAXES (Note 5).....................    5,853      3,288     14,000     12,171
                                                          -------    -------    -------    -------
INCOME BEFORE EXTRAORDINARY ITEM........................   10,033      4,899     24,300     19,801
EXTRAORDINARY ITEM--
  WRITE OFF OF DEFERRED DEBT ISSUANCE COSTS
  (NET OF $13, $13, $199 AND $13 TAX BENEFITS FOR THE
  THREE MONTHS ENDED JUNE 30, 2000 AND 2001, AND THE SIX
  MONTHS ENDED JUNE 30, 2000 AND 2001, RESPECTIVELY)....       24         23        353         24
                                                          -------    -------    -------    -------
NET INCOME..............................................  $10,009    $ 4,876    $23,947    $19,777
                                                          =======    =======    =======    =======
EARNINGS PER SHARE:
  Basic and Diluted Earnings Per Share
    Income Before Extraordinary Item....................  $  0.17    $  0.08    $  0.41    $  0.33
    Extraordinary Item--Write Off of Deferred Debt
      Issuance Costs....................................       --         --      (0.01)        --
                                                          -------    -------    -------    -------
    Net Income..........................................  $  0.17    $  0.08    $  0.40    $  0.33
                                                          =======    =======    =======    =======
</Table>

           See notes to condensed consolidated financial statements.

                                       4
<Page>
                           THE BOYDS COLLECTION, LTD.
            CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                     FOR THE SIX MONTHS ENDED JUNE 30, 2001
                                  (UNAUDITED)
<Table>
<Caption>
                                 COMMON STOCK
                            ----------------------   COMMON STOCK                ACCUMULATED
                              SHARES                  AND PAID-IN                   OTHER
                            ISSUED AND    TREASURY    CAPITAL IN     TREASURY   COMPREHENSIVE   RETAINED
                            OUTSTANDING    STOCK     EXCESS OF PAR    STOCK     INCOME/(LOSS)   EARNINGS
                            -----------   --------   -------------   --------   -------------   --------
                                                           (IN THOUSANDS)
<S>                         <C>           <C>        <C>             <C>        <C>             <C>
BALANCE, JANUARY 1,
  2001....................    61,838       2,685       $(41,133)     $(26,349)       $(7)       $128,775
  Issuance of common
    stock.................        --          (1)            (4)           13         --              --
  Repurchase of common
    stock.................        --          68             --          (481)        --              --
  Other comprehensive
    income:
    Foreign currency
      translation.........        --          --             --            --          1              --
  Net income..............        --          --             --            --         --          19,777
  Comprehensive income....        --          --             --            --          1              --
                              ------       -----       --------      --------        ---        --------
BALANCE, JUNE 30, 2001....    61,838       2,752       $(41,137)     $(26,817)       $(6)       $148,552
                              ======       =====       ========      ========        ===        ========

<Caption>

                                                TOTAL
                            COMPREHENSIVE   STOCKHOLDERS'
                               INCOME          EQUITY
                            -------------   -------------
                                   (IN THOUSANDS)
<S>                         <C>             <C>
BALANCE, JANUARY 1,
  2001....................          --         $61,286
  Issuance of common
    stock.................          --         $     9
  Repurchase of common
    stock.................          --         $  (481)
  Other comprehensive
    income:
    Foreign currency
      translation.........           1         $     1
  Net income..............      19,777         $19,777
                               -------
  Comprehensive income....     $19,778              --
                               =======         -------
BALANCE, JUNE 30, 2001....                     $80,592
                                               =======
</Table>

           See notes to condensed consolidated financial statements.

                                       5
<Page>
                           THE BOYDS COLLECTION, LTD.

                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 2001
                                  (UNAUDITED)

<Table>
<Caption>
                                                               SIX MONTHS ENDED
                                                                   JUNE 30,
                                                              -------------------
                                                                2000       2001
                                                              --------   --------
                                                                (IN THOUSANDS)
<S>                                                           <C>        <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income................................................  $ 23,947   $ 19,777
  Adjustments to reconcile net income to net cash provided
    by operating activities:
    Depreciation and amortization...........................       530        877
    Amortization and write off of deferred debt issuance
      costs.................................................       912        355
    Deferred taxes..........................................     8,249      6,560
    Changes in assets and liabilities:
      Accounts receivable--net..............................    (4,605)        65
      Inventory--net........................................    (1,844)      (180)
      Inventory in transit..................................      (971)     1,408
      Other current assets..................................      (830)        76
      Other assets..........................................       (24)        12
      Accounts payable......................................       425       (935)
      Accrued taxes/income taxes receivable.................    (2,262)     3,174
      Accrued expenses......................................    (4,464)      (808)
      Interest payable......................................      (640)      (343)
                                                              --------   --------
        Net cash provided by operating activities...........    18,423     30,038
                                                              --------   --------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Acquisition, net of cash acquired.........................        --       (531)
  Purchase of property and equipment........................      (776)    (2,266)
                                                              --------   --------
        Net cash used in investing activities...............      (776)    (2,797)
                                                              --------   --------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Repayment of debt.........................................   (26,000)   (29,866)
  Sale of common stock (net of related fees and expenses)...       691         (4)
  Repurchase of common stock................................      (124)      (468)
                                                              --------   --------
        Net cash used in financing activities...............   (25,433)   (30,338)
                                                              --------   --------
Effect of exchange rate changes on cash.....................        16          1
                                                              --------   --------
NET DECREASE IN CASH AND CASH EQUIVALENTS...................    (7,770)    (3,096)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD..............    11,501      3,191
                                                              --------   --------
CASH AND CASH EQUIVALENTS, END OF PERIOD....................  $  3,731   $     95
                                                              ========   ========
CASH PAID DURING THE PERIOD FOR INTEREST....................  $  9,886   $  7,108
                                                              ========   ========
CASH PAID DURING THE PERIOD FOR INCOME TAXES................  $  8,140   $  2,447
                                                              ========   ========
</Table>

           See notes to condensed consolidated financial statements.

                                       6
<Page>
                           THE BOYDS COLLECTION, LTD.

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
           (AMOUNTS IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
                                  (UNAUDITED)

1. INTERIM FINANCIAL STATEMENTS

    The Boyds Collection, Ltd., ("Boyds" or the "Company") is a leading
designer, importer and distributor of high-quality, hand crafted collectibles
and other specialty giftware products. Boyds imports substantially all of its
products from foreign suppliers, primarily located in The People's Republic of
China.

    The condensed consolidated balance sheet, as of June 30, 2001, the condensed
consolidated statements of income for the three months and the six months ended
June 30, 2000 and 2001, the condensed consolidated statement of stockholders'
equity for the six months ended June 30, 2001 and the condensed consolidated
statements of cash flows for the six months ended June 30, 2000 and 2001 are
unaudited. In the opinion of management, all adjustments, consisting only of
normal recurring adjustments, necessary for a fair presentation of such interim
financial statements have been included. The results of operations for the six
months ended June 30, 2001 are not necessarily indicative of the results to be
expected for the full year. These financial statements should be read in
conjunction with the financial statements and notes included in the Annual
Report on Form 10-K filed with the Securities and Exchange Commission on
April 2, 2001.

    Certain reclassifications have been made to the prior years' amounts to
conform to the fiscal 2001 presentation.

    In July 2001, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards No. 141 ("SFAS 141"), "Business
Combinations." SFAS 141 requires the purchase method of accounting for business
combinations initiated after June 30, 2001 and eliminates the
pooling-of-interests method. The Company does not believe that the adoption of
SFAS 141 will have a significant impact on its financial statements.

    In July 2001, the FASB issued Statement of Financial Accounting Standards
No. 142 ("SFAS 142"), "Goodwill and Other Intangible Assets", which is effective
January 1, 2002. SFAS 142 requires, among other things, the discontinuance of
goodwill amortization. In addition, the standard includes provisions for the
reclassification of certain existing recognized intangibles as goodwill,
reassessment of the useful lives of existing recognized intangibles,
reclassification of certain intangibles out of previously reported goodwill and
the identification of reporting units for purposes of assessing potential future
impairments of goodwill. SFAS 142 also requires the Company to complete a
transitional goodwill impairment test six months from the date of adoption. The
Company is currently assessing but has not yet determined the impact of
SFAS 142 on its financial position and results of operations.

2. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK

    At December 31, 2000 and at June 30, 2001, Boyds had letters of credit
outstanding under bank credit agreements amounting to $8,239 and $9,859,
respectively. These letters of credit represent Boyds' commitment to purchase
inventory which is to be produced and/or shipped.

                                       7
<Page>
                           THE BOYDS COLLECTION, LTD.

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
           (AMOUNTS IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
                            (UNAUDITED) (CONTINUED)

3. RELATED PARTY TRANSACTIONS

    For the second quarter and first six months ended June 30, 2000, Boyds paid
to Kohlberg, Kravis & Roberts approximately $479 and $573 respectively for
management fees, recruitment fees and related expenses. For the second quarter
and first six months ended June 30, 2001, Boyds paid to Kohlberg, Kravis &
Roberts approximately $99 and $194 respectively for management fees, recruitment
fees and related expenses.

4. LONG-TERM DEBT

    Long-term debt is summarized as follows:

<Table>
<Caption>
                                                        DECEMBER 31,   JUNE 30,
                                                            2000         2001
                                                        ------------   --------
<S>                                                     <C>            <C>
9% Senior Subordinated Notes due May 15, 2008             $ 82,657     $ 81,541
Credit Agreement:
  Secured Tranche A Term Loans due April 2005
    Interest based on LIBOR or base rate as defined...      88,250       82,000
  Secured revolving loan due April 2005
    Interest based on LIBOR or base rate as defined...      22,500           --
                                                          --------     --------
Sub-Total.............................................     193,407      163,541
Less: Current portion of long-term debt...............      (6,250)     (14,000)
                                                          --------     --------
                                                          $187,157     $149,541
                                                          ========     ========
</Table>

    At June 30, 2001, the weighted average interest rate in effect for the term
loans was 4.8%.

    The Notes have an optional redemption feature exercisable by Boyds any time
on or after May 15, 2003. Boyds may also redeem up to 40% of the Notes with the
proceeds of one or more equity offerings at any time on or prior to May 15,
2001, and did so following the public offering on March 5, 1999. Interest on the
Notes is payable semiannually on May 15 and November 15.

    The Credit Agreement contains certain covenants, including the requirement
of a minimum interest coverage ratio as defined in the agreement and substantial
restrictions as to dividends and distributions. Boyds is in compliance with all
applicable covenants as of June 30, 2001. The agreement also provides that the
Term Loans and revolving loan commitment be secured by the capital stock of
Boyds' current and future subsidiaries. In addition, the Term Loans are subject
to mandatory prepayment with the proceeds of certain asset sales and a portion
of Boyds' excess cash flow as defined in the credit agreement. Boyds has the
option of selecting its own interest period at one, two, three, six, nine or
twelve month periods.

                                       8
<Page>
                           THE BOYDS COLLECTION, LTD.

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
           (AMOUNTS IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
                            (UNAUDITED) (CONTINUED)

4. LONG-TERM DEBT (CONTINUED)
    The scheduled maturities of the long-term debt are as follows:

<Table>
<S>                                                           <C>
2002........................................................  $    --
2003........................................................   17,000
2004........................................................   23,000
2005........................................................   28,000
Thereafter..................................................   81,541
</Table>

5. PROVISION FOR INCOME TAXES

    For federal income tax purposes, Boyds has elected to treat the
Recapitalization and Stock purchase that occurred in April 1998 as an asset
acquisition by making an Internal Revenue Code Section 338 (h) (10) election. As
a result, there is a difference between the financial reporting and tax basis of
Boyds' assets. The difference creates deductible goodwill for tax purposes, and
a deferred tax asset for financial reporting purposes. The deferred tax asset
will be realized as the goodwill is amortized over a period of fifteen years. In
the opinion of management, Boyds believes it will have sufficient profits in the
future to realize the deferred tax asset.

    On June 21, 2001 the Pennsylvania General Assembly passed House Bill 334.
Included in this Bill were income and franchise tax changes, backdated to
January 1, 2001. Boyds is currently reviewing the impact of these changes with
its tax advisors, however, it believes the final outcome will result in a
decrease in its effective state tax rate during 2001 and an increase in
subsequent years.

6. CONTINGENCIES

    Boyds has received from the State of Pennsylvania an assessment to pay
additional franchise taxes of approximately $6,914 for 1998. However, a
June 2001 ruling issued by the State indicates that Boyds will ultimately
prevail in this matter.

    Boyds is involved in various legal proceedings, claims and governmental
audits in the ordinary course of business. In the opinion of management, the
ultimate disposition of these matters will not have a material adverse effect on
the financial position or results of operations of Boyds'.

7. LEGAL SETTLEMENT

    On March 28, 2000, Boyds settled an outstanding lawsuit related to a claim
for royalties. In complete and final resolution of the suit, Boyds agreed to a
settlement of the claim, resulting in a $4,400 charge ($3,068 after tax), which
was recorded in selling, general and administrative expenses in the period ended
December 31, 1999, and paid in March, 2000.

                                       9
<Page>
                           THE BOYDS COLLECTION, LTD.

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
           (AMOUNTS IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
                            (UNAUDITED) (CONTINUED)

8. EARNINGS PER SHARE

    The following is a reconciliation of the numerators and denominators of the
basic and diluted earnings per share computations for the net income available
to common stockholders:

<Table>
<Caption>
                                                          THREE MONTHS ENDED     SIX MONTHS ENDED
                                                               JUNE 30,              JUNE 30,
                                                          -------------------   -------------------
                                                            2000       2001       2000       2001
                                                          --------   --------   --------   --------
                                                                       (IN THOUSANDS)
<S>                                                       <C>        <C>        <C>        <C>
Numerator for basic and diluted earnings per share:
  Net income............................................  $10,009    $ 4,876    $23,947    $19,777
                                                          =======    =======    =======    =======
Denominator:
  Denominator for basic earnings per share--weighted
    average shares......................................   59,154     59,105     59,145     59,129
Effect of dilutive securities:
  Effect of shares issuable under stock option plans
    based on treasury stock method......................      180        378        133        333
                                                          -------    -------    -------    -------
Denominator for diluted earnings per share--weighted
  average shares........................................   59,334     59,483     59,278     59,462
                                                          =======    =======    =======    =======
</Table>

                                       10
<Page>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
  OF OPERATIONS

GENERAL

    Boyds is a leading designer, importer and distributor of branded,
high-quality, hand crafted collectibles and other specialty giftware products.
Boyds sells its products through an extensive network of approximately 18,000
accounts comprised of independent gift and collectibles retailers, premier
department stores, selected catalogue retailers and other electronic and retail
channels.

    Boyds' sales consist of plush products, resin products, doll products,
village products, home decor products and other products. Other products include
Collectors club sales, which are generated from annual dues collected directly
from consumers who become members of Boyds' collectors club, THE LOYAL ORDER OF
FRIENDS OF BOYDS, which began in July 1996 and currently has approximately
100,000 paying members; distributor sales, which are sales of Boyds' products to
independent distributors in other countries and to certain accounts in the U.S.,
which are shipped directly from overseas suppliers; and related clothing and
accessories.

    Boyds licenses its product designs to other companies for products including
stationery, greeting cards and home textiles. Boyds believes such licensing, in
addition to providing royalty income, helps to increase consumer awareness of
Boyds' designs and brand image. Boyds reports royalty income in net sales.

    Selling, general and administrative expenses are comprised of overhead,
selling and marketing costs, administration and professional fees. Boyds
exhibits its products at many national and regional tradeshows where orders are
taken by Boyds' employees and part-time help. Boyds operates almost exclusively
out of a leased office/distribution facility in McSherrystown, Pennsylvania
where it believes both labor and rental costs are attractive. These factors,
combined with Boyds' access to low-cost manufacturing sources located primarily
in China, result in increased operating income margins.

RESULTS OF OPERATIONS

    The following table sets forth the components of net income as a percentage
of net sales for the periods indicated:

<Table>
<Caption>
                                                           THREE MONTHS ENDED              SIX MONTHS ENDED
                                                                JUNE 30,                       JUNE 30,
                                                        -------------------------       -----------------------
                                                          2000             2001           2000           2001
                                                        --------         --------       --------       --------
<S>                                                     <C>              <C>            <C>            <C>
Net sales.............................................   100.0%           100.0%         100.0%         100.0%
Gross profit..........................................    64.7             64.4           63.8           64.3
Selling, general and administrative expenses..........    13.6             22.5           11.8           14.1
                                                         -----            -----          -----          -----
  Income from operations..............................    51.1             41.9           52.0           50.2
                                                         -----            -----          -----          -----
Other income/(expense)................................     0.1             (0.2)           0.2            0.0
Interest expense......................................    10.8             11.8           10.6            9.1
Provision for income taxes............................    14.9             12.0           15.2           15.7
                                                         -----            -----          -----          -----
  Income before extraordinary item....................    25.5%            17.9%          26.4%          25.4%
                                                         =====            =====          =====          =====
Extraordinary item....................................     0.0              0.1            0.4            0.0
                                                         -----            -----          -----          -----
  Net income..........................................    25.5%            17.8%          26.0%          25.4%
                                                         =====            =====          =====          =====
</Table>

                                       11
<Page>
THREE MONTHS ENDED JUNE 30, 2001 VS. THREE MONTHS ENDED JUNE 30, 2000

    NET SALES--Net sales declined $12.0 million, or 30.5%, to $27.3 million in
the second quarter of 2001 from $39.3 million for the second quarter of 2000.
Compared to the same quarter last year sales of Boyds' plush products decreased
$9.5 million, or 39.7%, resin product sales decreased $1.0 million, or 11.2%,
doll product sales decreased $0.2 million, or 12.5%, village product sales
decreased $0.9 million, or 75.0%, and home decor product sales, previously
included in the all other category, were flat. As a percentage of net sales for
the quarter plush products represented 53%, resin products represented 29%, doll
products represented 5%, village products represented 1% and home decor products
represented 4%.

    The sales shortfall was due to reduced order volume from our accounts,
reflecting the ongoing challenging environment facing our retailers, and the
strategic elimination of certain resin product categories. These were only
partially offset by the launch of our stationery product line and increased
emphasis on giftability within the resin category. During the second six months
of 2001 Boyds will launch a new concept, Bear & Co., which will feature bears
and bear related books directed at the children's market. The Company will also
continue its focus on giftability, the newly launched stationery and men's
lines, and home decor.

    GROSS PROFIT--Gross profit declined $7.8 million, or 30.7%, to
$17.6 million in the second quarter of 2001 from $25.4 million for the second
quarter of 2000. Gross profit as a percent of sales declined to 64.4% for the
quarter from 64.7% for the same period in 2000. The dollar decline was primarily
attributable to the decline in sales volume.

    SELLING, GENERAL & ADMINISTRATIVE EXPENSES (SG&A)--SG&A increased
$0.8 million, or 14.8%, to $6.2 million in the second quarter of 2001 from
$5.4 million for the second quarter of 2000. SG&A as a percent of sales
increased to 22.5% for the quarter from 13.6% for the same period in 2000. The
dollar increase was primarily due to increased expenditure on new product
development and advertising, and the cost of holding the first Friends of Boyds
convention. The increase in the percent of sales was primarily due to the
decline in sales volume.

    INCOME FROM OPERATIONS--Income from operations declined $8.6 million, or
42.8%, to $11.5 million in the second quarter of 2001 from $20.1 million for the
second quarter of 2000. Income from operations as a percent of sales declined to
41.9% for the quarter from 51.1% for the same period in 2000. The dollar decline
and the decline in the percent of sales was primarily attributable to the
decline in sales volume.

    TOTAL INTEREST EXPENSE--Total interest expense declined $1.0 million, or
23.8%, to $3.2 million in the second quarter of 2001 from $4.2 million for the
second quarter of 2000. Total interest expense as a percent of sales increased
to 11.8% for the quarter from 10.8% for the same period in 2000. The dollar
decline was due to the reduction of debt from excess cash and a decline in
interest rates. The increase in the percent of sales was due primarily to the
decline in sales volume.

    PROVISION FOR INCOME TAXES--Provision for income taxes declined
$2.6 million, or 44.1%, to $3.3 million in the second quarter of 2001 from
$5.9 million for the second quarter of 2000. Provision for income taxes as a
percent of sales declined to 12.0% for the quarter from 14.9% for the same
period in 2000. The dollar decline and the decline in the percent of sales was
due primarily to the decline in sales volume.

    INCOME BEFORE EXTRAORDINARY ITEM--Income before extraordinary item declined
$5.1 million, or 51.0%, to $4.9 million in the second quarter of 2001 from
$10.0 million for the second quarter of 2000. Income before extraordinary item
as a percent of sales declined to 17.9% for the quarter from 25.5% for the same
period in 2000. The decline in both dollars and as a percent of sales was
primarily attributable to the decline in sales volume.

                                       12
<Page>
    EXTRAORDINARY ITEM--The extraordinary items, both net of tax, recorded in
the second quarter 2001 and the second quarter 2000, respectively, are for the
write off of deferred debt issuance costs arising from the early paydown of long
term debt of $1.1 million and $2.0 million in the first quarter 2001 and the
first quarter 2000, respectively.

    NET INCOME--Net income declined $5.1 million, or 51.0%, to $4.9 million in
the second quarter of 2001 from $10.0 million for the second quarter of 2000.
Net income as a percent of sales declined to 17.8% for the quarter from 25.5%
for the same period in 2000. The decline in both dollars and as a percent of
sales was primarily attributable to the decline in sales volume.

SIX MONTHS ENDED JUNE 30, 2001 VS. SIX MONTHS ENDED JUNE 30, 2000

    NET SALES--Net sales declined $14.3 million, or 15.5%, to $77.7 million in
the first six months of 2001 from $92.0 million for the first six months of
2000. Compared to the same six months last year sales of Boyds' plush products
decreased $8.7 million, or 18.2%, resin product sales decreased $2.6 million, or
9.7%, doll product sales decreased $2.4 million, or 48.0%, village product sales
decreased $0.1 million, or 3.7%, and home decor product sales, previously
included in the all other category, increased $1.7 million, or 141.7% from a low
base. As a percentage of net sales for the first six months plush products
represented 50%, resin products represented 31%, doll products represented 3%,
village products represented 3% and home decor products represented 4%.

    The sales shortfall was due to reduced order volume from our accounts,
reflecting the challenging environment that has persisted over the past year for
our retailers, and the strategic elimination of certain resin product
categories. These were only partially offset by the launch of our stationery
product line and increased emphasis on giftability within the resin category.

    GROSS PROFIT--Gross profit declined $8.7 million, or 14.8%, to
$50.0 million in the first six months of 2001 from $58.7 million for the first
six months of 2000. Gross profit as a percent of sales increased to 64.4% for
the first six months from 63.8% for the same period in 2000. The dollar decline
was primarily attributable to the decline in sales volume and a provision of
$1.8 million for slow-moving inventory. The increase in the percent of sales
reflects the impact of the operational programs and financial controls
implemented in 2000.

    SELLING, GENERAL & ADMINISTRATIVE EXPENSES (SG&A)--SG&A was flat in the
first six months of 2001 when compared to the first six months of 2000. SG&A as
a percent of sales increased to 14.1% for the first six months from 11.8% for
the same period in 2000. The increase in the percent of sales was primarily due
to the decline in sales volume.

    INCOME FROM OPERATIONS--Income from operations declined $8.7 million, or
18.2%, to $39.1 million in the first six months of 2001 from $47.8 million for
the first six months of 2000. Income from operations as a percent of sales
declined to 50.2% for the first six months from 52.0% for the same period in
2000. The dollar decline and the decline in the percent of sales was primarily
attributable to the decline in sales volume.

    TOTAL INTEREST EXPENSE--Total interest expense declined $2.6 million, or
26.8%, to $7.1 million in the first six months of 2001 from $9.7 million for the
first six months of 2000. Total interest expense as a percent of sales declined
to 9.1% for the first six months from 10.6% for the same period in 2000. The
dollar decline and the decline in the percent of sales was due to the reduction
of debt from excess cash and a decline in interest rates.

    PROVISION FOR INCOME TAXES--Provision for income taxes declined
$1.8 million, or 12.9%, to $12.2 million in the first six months of 2001 from
$14.0 million for the first six months of 2000. Provision for income taxes as a
percent of sales increased to 15.7% for the first six months from 15.2% for the
same period in 2000. The dollar decline and the decline in the percent of sales
was due primarily to the decline in sales volume.

                                       13
<Page>
    INCOME BEFORE EXTRAORDINARY ITEM--Income before extraordinary item declined
$4.5 million, or 18.5%, to $19.8 million in the first six months of 2001 from
$24.3 million for the first six months of 2000. Income before extraordinary item
as a percent of sales declined to 25.4% for the first six months from 26.4% for
the same period in 2000. The dollar decline and the decline in the percent of
sales was primarily attributable to the decline in sales volume.

    EXTRAORDINARY ITEM--The extraordinary items, both net of tax, recorded in
the first six months of 2001 and the first six months of 2000, respectively, are
for the write off of deferred debt issuance costs arising from the early paydown
of long term debt of $7.4 million and $29.0 million in the first six months of
2001 and the first six months of 2000, respectively.

    NET INCOME--Net income declined $4.1 million, or 17.2%, to $19.8 million in
the first six months of 2001 from $23.9 million for the first six months of
2000. Net income as a percent of sales declined to 25.4% for the first six
months from 26.0% for the same period in 2000. The dollar decline and the
decline in the percent of sales was primarily attributable to the decline in
sales volume.

LIQUIDITY AND CAPITAL RESOURCES

    Boyds' primary sources of liquidity are cash flow from operations and
borrowings under its credit agreement, which includes a revolving credit
facility. Boyds' primary uses of cash are to fund working capital and to service
debt. Cash flow from operations increased $11.6 million, or 63.0%, to
$30.0 million in the first six months of 2001 from $18.4 million for the first
six months of 2000. The cash flow increase was primarily attributable to the
increase in accrued expenses, and the decrease in income tax receivable,
accounts receivable--net, inventory in transit and inventory--net, partially
reduced by the decrease in net income, deferred taxes and accounts payable. Net
cash used in investing activities for the first six months of 2001, of
$2.8 million, was used for capital expenditures and an acquisition. Net cash
used in financing activities for the first six months of 2001, of
$30.3 million, was primarily used to reduce outstanding long-term debt and was
derived primarily from net income.

    In connection with its recapitalization, Boyds issued 9% Senior Subordinated
Notes due 2008 in an amount of $165.0 million and entered into a $325.0 million
senior secured term loan and a senior secured revolving credit facility
providing for borrowings up to $40.0 million. As of June 30, 2001, Boyds had
repaid $83.5 million of the 9% Notes leaving a balance outstanding of
$81.5 million, and $243.0 million of the term loan leaving a balance outstanding
of $82.0 million. The revolving credit facility provides loans in an aggregate
amount of up to $40.0 million. Boyds had no borrowings under the revolving
credit facility at June, 2001, thus the full amount available under the
revolving credit facility is available to fund the working capital requirements
of Boyds.

    Borrowings under the credit agreement bear interest at a rate per annum,
equal to a margin over either a base rate or LIBOR, at Boyds' option. Beginning
April 21, 2000, the Tranche A term loan amortizes over six years and the Tranche
B term loan amortizes over seven years. The credit agreement contains customary
covenants and events of default, including substantial restrictions on Boyds'
ability to declare dividends or make distributions. The term loans are subject
to mandatory prepayment with the proceeds of certain asset sales and a portion
of Boyds' excess cash flow, as defined in the credit agreement. As of
December 31, 2000, the Tranche B term loan had been fully repaid. The revolving
credit facility commitment will terminate on April 21, 2005.

    Boyds does not expect to incur significant capital expenditures for the
foreseeable future, due to its sourcing arrangements with suppliers. However,
between now and the Fall of 2002 Boyds expects to spend approximately
$16.0 million to construct and equip a company museum and visitor attraction,
which will be located in Gettysburg.

                                       14
<Page>
    Management believes that cash flow from operations and availability under
the revolving credit facility will provide adequate funds for Boyds' foreseeable
working capital needs, planned capital expenditures, debt service obligations,
the common stock repurchase program and the bond repurchase program. Any future
acquisitions, joint ventures or other similar transactions may require
additional capital and there can be no assurance that any such capital will be
available to Boyds on acceptable terms or at all. Boyds' ability to fund its
working capital needs, planned capital expenditures and scheduled debt payments,
to refinance indebtedness and to comply with all of the financial covenants
under its debt agreements, depends on its future operating performance and cash
flow, which in turn are subject to prevailing economic conditions and to
financial, business and other factors, some of which are beyond Boyds' control.

    On February 17, 2000, Boyds announced that its Board of Directors had
approved the repurchase of an additional 3,000,000 shares of the Company's
common stock. As of June 30, 2001, Boyds had repurchased 86,580 shares of common
stock pursuant to this stock repurchase program for an aggregate amount of
approximately $0.6 million. These repurchases were financed out of operating
cash flow. Any future repurchases under this program are expected to be financed
similarly or by utilizing borrowings under the revolving credit facility. Boyds
plans to make such purchases from time to time in the open market or in private
transactions.

    On July 27, 2000 Boyds announced that its Board of Directors had approved a
repurchase program for its outstanding 9% Series B Senior Subordinated Notes due
2008. As of June 30, 2001, Boyds had repurchased $17.5 million of its notes
pursuant to this note repurchase program. These repurchases were financed out of
operating cash flow. Any future repurchases under this program are expected to
be financed similarly or by utilizing borrowings under the revolving credit
facility. Boyds plans to make such purchases from time to time in the open
market or in private transactions.

SEASONALITY

    Boyds does not have the significant seasonal variation in its orders that it
believes is experienced by many other giftware and collectibles companies. Boyds
receives orders throughout the year and generally ships merchandise out on a
first-in, first-out basis. Approximately 40% of orders are taken between
November and April while approximately 60% of orders are placed between May and
October in anticipation of the holiday season. Boyds does not build a large
receivables balance relative to sales because it typically does not offer its
customers long payment terms or dating programs.

EFFECTS OF RECENTLY ISSUED ACCOUNTING STANDARDS

    SFAS No. 133, "Accounting for Derivative Instruments and Hedging
Activities," is effective for all fiscal years beginning after June 15, 2000.
SFAS 133, as amended, establishes accounting and reporting standards for
derivative instruments, including certain derivative instruments embedded in
other contracts and for hedging activities. Under SFAS 133, certain contracts
that were not formerly considered derivatives may now meet the definition of a
derivative. Boyds adopted SFAS 133 effective January 1, 2001. The adoption of
SFAS 133 did not have a significant impact on the financial position, results of
operations, or cash flows of Boyds.

    In July 2001, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards No. 141 ("SFAS 141"), "Business
Combinations." SFAS 141 requires the purchase method of accounting for business
combinations initiated after June 30, 2001 and eliminates the
pooling-of-interests method. The Company does not believe that the adoption of
SFAS 141 will have a significant impact on its financial statements.

                                       15
<Page>
    In July 2001, the FASB issued Statement of Financial Accounting Standards
No. 142 ("SFAS 142"), "Goodwill and Other Intangible Assets", which is effective
January 1, 2002. SFAS 142 requires, among other things, the discontinuance of
goodwill amortization. In addition, the standard includes provisions for the
reclassification of certain existing recognized intangibles as goodwill,
reassessment of the useful lives of existing recognized intangibles,
reclassification of certain intangibles out of previously reported goodwill and
the identification of reporting units for purposes of assessing potential future
impairments of goodwill. SFAS 142 also requires the Company to complete a
transitional goodwill impairment test six months from the date of adoption. The
Company is currently assessing but has not yet determined the impact of
SFAS 142 on its financial position and results of operations.

FOREIGN EXCHANGE

    The dollar value of Boyds' assets abroad is not significant. Boyds' sales
are primarily denominated in United States dollars and, as a result, are not
subject to changes in exchange rates.

    Boyds imports most of its products from manufacturers in China. Boyds' costs
could be adversely affected on a short-term basis if the Chinese renminbi
appreciates significantly relative to the United States dollar. Conversely, its
costs would be favorably affected on a short-term basis if the Chinese renminbi
depreciates significantly relative to the United States dollar. Although Boyds
generally pays for its products in United States dollars, the cost of such
products fluctuates with the value of the Chinese renminbi. In the future, Boyds
may, from time to time, enter into foreign exchange contracts or prepay
inventory purchases as a partial hedge against currency fluctuations.
Differences between the amounts of such contracts and costs of specific material
purchases are included in inventory and cost of sales. Boyds intends to manage
foreign exchange risks to the extent appropriate.

FORWARD LOOKING STATEMENTS

    Some of the matters discussed in this report include forward-looking
statements. Statements that are predictive in nature, that depend upon or refer
to future events or conditions or that include words such as "expects,"
"anticipates," "intends," "plans," "believes," "estimates" and similar
expressions are forward-looking statements.

    The forward-looking statements in this report are based on a number of
assumptions and estimates which are inherently subject to significant
uncertainties and contingencies, many of which are beyond the control of Boyds,
and reflect future business decisions that are subject to change. A variety of
factors could cause actual results to differ materially from those anticipated
in Boyds' forward-looking statements, including: the effects of economic
conditions; the inability to grow Boyds' business as planned; the loss of either
of Boyds' two independent buying agencies or any of its manufacturing sources;
economic or political instability in the countries with which Boyds does
business; changes to, or the imposition of, new regulations, duties, taxes or
tariffs associated with the import or export of goods from or to the countries
with which Boyds does business; and other risk factors that are discussed in
this report and, from time to time, in other Securities and Exchange Commission
reports and filings. One or more of the factors discussed above may cause actual
results to differ materially from those expressed in or implied by the
statements in this report.

    Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of such statements. Boyds undertakes
no obligation to publicly release the results of any revisions to these
forward-looking statements that may be made to reflect events or circumstances
after the date of this report, or the date of such statements, as the case may
be, or to reflect the occurrence of unanticipated events.

                                       16
<Page>
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

    The Company faces minimal interest rate risk exposure in relation to its
outstanding debt of $163.5 million at June 30, 2001. Of this amount,
$82.0 million under the Credit Agreement is subject to interest rate
fluctuations. A hypothetical 10% change in interest rates applied to the fair
value of debt would not have a material impact on earnings or cash flows of the
Company.

    The Company faces currency risk exposure that arises from translating the
results of its United Kingdom operations to the U.S. dollar. The currency risk
exposure is not material as the United Kingdom subsidiary operations do not have
a material impact on the Company's earnings.

                                       17
<Page>
                                    PART II
                               OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

    Boyds has received from the State of Pennsylvania an assessment to pay
additional franchise taxes of approximately $6,914 for 1998. However, a
June 2001 ruling issued by the State indicates that Boyds will ultimately
prevail in this matter.

    In addition, Boyds is involved in various legal proceedings, claims and
governmental audits in the ordinary course of business. In the opinion of
management, the ultimate disposition of these matters will not have a material
adverse effect on the financial position or results of operations of Boyds.

    Other than the above, Boyds does not believe that there are any other
pending or threatened legal proceedings that, if adversely determined, would
have a material adverse effect on Boyds.

ITEM 2. EXHIBITS AND REPORTS ON FORM 8-K.

<Table>
      <S>  <C>

      (a)  Exhibits:

           None.

      (b)  Reports on Form 8-K:

           None.
</Table>

                                       18
<Page>
                                   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.

<Table>
<S>                                                    <C>  <C>
Date: July 27, 2001                                    THE BOYDS COLLECTION, LTD.

                                                       By:            /s/ CHRISTINE L. BELL
                                                            -----------------------------------------
                                                                        Christine L. Bell
                                                             CHIEF OPERATING OFFICER, CONTROLLER AND
                                                                            SECRETARY

                                                       By:              /s/ PETER H. FROST
                                                            -----------------------------------------
                                                                          Peter H. Frost
                                                                     CHIEF FINANCIAL OFFICER
</Table>

                                       19