<PAGE>   1
Company Name: DANIEL GREEN COMPANY Ticker Symbol: DAGR


                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                  Quarterly Report under Section 13 or 15(d) of
                       the Securities Exchange Act of 1934

       For the quarter ended September 30, 2000 Commission File No. 0-774
                              DANIEL GREEN COMPANY
                 (Name of Small Business Issuer in its Charter)

<TABLE>
<S>                                       <C>

         MASSACHUSETTS                             15-0327010
(State or other jurisdiction of           (IRS Employer Identification No.)
incorporation or organization)

         OLD TOWN, MAINE                                04468
(Address of principal executive offices)              (Zip Code)
</TABLE>

Issuer's telephone number, including area code: (207) 827-4431

Former  name,  former  address and former  fiscal  year,  if changed  since last
report: None.

Check whether the issuer:  (1) filed all reports required to be filed by section
13 or 15(d) of the  Exchange  Act  during  the past  twelve  months (or for such
shorter period that the  registrant was required to file such reports),  and (2)
has been subject to the filing requirements for the past 90 days. YES  X NO ___

<TABLE>
<S>                                         <C>
         CLASS                              OUTSTANDING AT SEPTEMBER 30, 2000
Common Stock $2.50 par value                         1,585,098
</TABLE>


Transitional Small Business Disclosure Format (Check One)  Yes __   No X



<PAGE>   2



                              DANIEL GREEN COMPANY

                                      INDEX

<TABLE>
<CAPTION>

                                                                                Page
                                                                                Number
<S>                                                                             <C>

Index..............................................................................1

PART I - Financial Information

Consolidated Balance Sheets, Assets
         September 30,2000 and December 31, 1999...................................2

Consolidated Balance Sheets, Liabilities & Stockholders' Equity
         September 30,2000 and December 31, 1999...................................3

Consolidated Statements of Operations for the three months and six months
         periods ended September 30, 2000 and 1999.................................4

Consolidated Statements of Cash Flows for the six months ended
         September 30, 2000 and 1999...............................................5

Notes to Consolidated Financial Statements.........................................6

Management Discussion & Analysis of Financial Condition and Results
         of Operations.............................................................7

PART II - Other Information........................................................9
</TABLE>

                                        1

<PAGE>   3

Item 1  Financial Statements

                             DANIEL GREEN COMPANY
                          Consolidated Balance Sheets

<TABLE>
<CAPTION>

                                                                     ASSETS
                                                     September 30,              December 31,
                                                         2000                      1999
                                                      (Unaudited)                   (*)
                                                       ------------            ------------
<S>                                                  <C>                       <C>
Current Assets:
Cash                                                     $   309,996              $   225,079

Accounts Receivable, trade
 less allowances of $690,000 in 2000
         and $321,000 in 1999                             10,633,912                4,167,612

Deferred Income Tax Asset                                    535,500                  101,629

Finished Goods Inventories, at lower of
         cost (FIFO) or market:                           11,209,981                3,542,255

Other Current Assets                                         157,600                   71,725
                                                         -----------              -----------

Total Current Assets                                      22,846,989                8,108,300

Property, plant & equipment:
Real Estate and Water Power, at cost                       2,560,504                2,560,504
Machinery & Equipment at cost                              3,126,681                1,594,847
                                                         -----------              -----------
                                                           5,687,185                4,155,351
Less: Accumulated Depreciation                             3,461,257                3,333,701
                                                         -----------              -----------
Property, plant & equipment, net                           2,225,928                  821,650


Other Assets:
Deferred income tax asset                                  1,089,369                  815,176
Prepaid Pension Cost                                       2,497,719                        -
Other Assets, net                                          1,223,794                  506,535
                                                         -----------              -----------
 Total Other Assets                                        4,810,882                1,321,711
                                                         -----------              -----------


Total Assets                                             $29,883,799              $10,251,661
                                                         ===========              ===========
</TABLE>

(*) Derived from audited financial statements.
See notes to consolidated financial statements.


                                       2
<PAGE>   4

                             DANIEL GREEN COMPANY

                         Consolidated Balance Sheets

                      Liabilities & Stockholders' Equity


<TABLE>
<CAPTION>
                                                           September 30                   December 31
                                                               2000                           1999
                                                            (Unaudited)                        (*)
                                                           ------------                    ------------
<S>                                                       <C>                              <C>
Current Liabilities:

Notes Payable, line of credit                              $         -                      $ 1,903,078
Notes Payable, current                                         910,668                          864,754
Accounts Payable, trade                                      3,441,511                          548,816
Accrued Salaries & Commissions                                 182,308                          170,935
Income Tax Payable                                             833,350                                0
Other Accrued Liabilities                                      725,188                          206,448
                                                           -----------                      -----------

Total Current Liabilities                                    6,093,025                        3,694,031

Notes Payable, line of credit                               11,119,228                                0
Notes Payable, non-current                                   5,780,481                           81,087
Other Liability                                              1,875,156                                0
                                                           -----------                      -----------

Total Liabilities                                           24,867,890                        3,775,118


Stockholders' Equity:

Common Stock                                                 4,245,823                        4,245,823
Paid-in-excess of par value                                    815,940                          815,940
Retained Earnings                                              391,573                        1,987,992
                                                           -----------                      -----------
                                                             5,453,336                        7,049,755
Less: Treasury Stock                                          (437,427)                        (573,212)
                                                           -----------                      -----------
Total stockholders' equity                                   5,015,909                        6,476,543
                                                           -----------                      -----------

Total Liabilities & Stockholders'
         Equity                                            $29,883,799                      $10,251,661
                                                           ===========                      ===========
</TABLE>


(*) Derived from audited financial statements.
See notes to consolidated financial statements.






                                       3
<PAGE>   5
                             DANIEL GREEN COMPANY

                    Consolidated Statements of Operations
                                 (unaudited)


<TABLE>
<CAPTION>

                                                          For the                                  For the
                                                   Three Months Ended                        Nine Months Ended
                                             September 30        September 30          September 30        September 30
                                                 2000                 1999                2000                 1999
                                              --------------------------------------------------------------------------

<S>                                        <C>                  <C>                  <C>                 <C>
Net Sales                                   $11,192,226           $3,694,844           $18,746,232          $ 8,845,220

Costs and Expenses
  Cost of Goods Sold                          7,170,100            2,583,448            12,721,761            7,833,290
  Selling, General &
    Administrative                            2,948,765              988,871             7,664,505            3,303,650
  Interest Expense                              451,430               65,035               520,712              117,012
                                              --------------------------------------------------------------------------

Total Costs and Expenses                     10,570,295            3,637,354            20,906,978           11,253,952
Income (Loss) before
  Income Taxes (Credit)                         621,931               57,490            (2,160,746)          (2,408,732)

Income Taxes (Credit)                           186,579               13,797              (564,327)            (578,096)
                                              --------------------------------------------------------------------------

Net Income (Loss)                             $ 435,352              $43,693           $(1,596,419)         $(1,830,636)
                                              ==========================================================================

Net Income (Loss) per Share:
  Basic                                       $    0.27               $ 0.03           $     (1.02)         $     (1.17)
  Diluted                                     $    0.27               $ 0.03           $     (1.02)         $     (1.17)

Shares Outstanding:
  Basic                                       1,588,640            1,579,211             1,571,320            1,568,860
  Diluted                                     1,588,640            1,579,211             1,571,320            1,568,860
</TABLE>


See notes to consolidated financial statements.




                                       4
<PAGE>   6

                             DANIEL GREEN COMPANY
                     Consolidated Statements of Cash Flows
                                  (Unaudited)

<TABLE>
<CAPTION>
                                                                                    For the
                                                                             For Nine Months Ended
                                                                 September 30                     September 30
                                                                    2000                              1999
                                                                 ----------------------------------------------

<S>                                                             <C>                               <C>
Operating Activities:
Net Loss                                                         $ (1,596,419)                     $(1,830,636)
Adjustments to reconcile net loss to net
  cash used by operating activities:
  Depreciation  and amortization                                      167,280                          248,151
Changes in assets & liabilities:
  (Increases) decreases in:
    Accounts Receivable, trade                                     (1,808,784)                         874,414
    Income Tax Refund Receivable                                            0                          387,142
    Inventories                                                    (1,744,240)                         924,839
    Other Current Assets                                              (59,469)                        (576,724)
    Other Assets                                                     (359,569)                        (656,850)
  Increases (decreases) in:
    Accounts Payable, trade                                         2,470,128                          304,853
    Accrued Salaries & Commissions                                    (85,886)                          46,735
Other Accrued Liabilities                                            (283,502)                          16,381
                                                                 ----------------------------------------------
Net Cash Used by Operating Activities                              (3,300,461)                        (261,695)
Investing Activities:
  Acquisition of business less cash acquired                      (11,485,900)                               0
  Sale of Marketable Securities                                       718,000                                0
  Purchase of property & equipment                                   (281,834)                        (133,082)
                                                                 ----------------------------------------------
Net cash used in Investing Activities                             (11,049,734)                        (133,082)

Financing Activities:
  Net Borrowing on Line of Credit                                   9,916,152                        1,175,615
  Net Borrowing (payments) of Notes Payable                         5,033,050                         (365,359)
  Purchase of Treasury Stock                                          135,785                           38,259
  Other Refinancing Expenses                                         (649,875)                        (456,038)
                                                                 ----------------------------------------------
Net Cash Provided in Financing Activities                          14,435,112                          392,477
                                                                 ----------------------------------------------

Net Increase (Decrease) in Cash                                        84,917                           (2,300)

Cash at Beginning of Period                                           225,079                            7,300
                                                                 ----------------------------------------------

Cash at End of Period                                            $    309,996                      $     5,000
                                                                 ==============================================
</TABLE>



See notes to consolidated financial statements.






                                       5
<PAGE>   7

DANIEL GREEN COMPANY

                   Notes to Consolidated Financial Statements

Note 1.                 In the opinion of the Company, the accompanying
                  unaudited consolidated financial statements contain
                  adjustments, all of which are of a normal and recurring
                  nature, necessary to present fairly the financial position
                  as of September 30, 2000 and the results of operations and
                  cash flows for the nine months then ended.

Note 2.                 The results of operations for the nine months ended
                  September 30, 2000 are not necessarily indicative of the
                  results to be expected for the full year.

Note 3.                 Due to severe global competition, the Company ceased
                  domestic manufacturing and transitioned to a fully sourced
                  importer during 1999. At the same time, several acquisition
                  opportunities were aggressively evaluated and pursued. This
                  activity resulted in acquiring certain assets of one of the
                  Company's largest competitors, L. B. Evans and Son Company
                  Limited Partnership ("Evans") on February 3, 2000. In
                  addition, the Company purchased all of the outstanding
                  shares of Penobscot Shoe Company ("Penobscot") from Riedman
                  Corporation on March 30, 2000. Penobscot Shoe Company has
                  been making women's footwear for over 60 years and is based
                  in Old Town, Maine. Since a significantly more modern
                  distribution facility, with excess capacity came with the
                  Penobscot acquisition, it was decided that relocating the
                  Daniel Green operation to Maine would provide the most
                  efficient and effective platform for optimizing the
                  synergies from the three businesses. During May 2000, and
                  pursuant to a public announcement made by the Company on
                  March 30, 2000, the Company's headquarters and distribution
                  operation previously located in Dolgeville, New York were
                  relocated to, and consolidated with, the newly acquired
                  operations in Old Town, Maine. During the first quarter of
                  this year, the Company recorded an expense totaling $508,811
                  for the purposes of closing the Dolgeville facility
                  ($400,000) and severance to terminated employees ($108,811).
                  The liability remaining related to this as of September 30,
                  2000 is approximately $80,000.


                                      6


<PAGE>   8



Note 4.                 The acquisition of Penobscot has been accounted for
                  under the purchase method of accounting and, accordingly,
                  the operation results of Penobscot have been included in the
                  Company's consolidated financial statements since the date
                  of acquisition. The estimated fair market value of assets
                  and liabilities acquired was $15.398 million and $4.853
                  million respectively. The acquired liabilities include a
                  $2,490 million obligation to dissenting stockholders of the
                  acquired company. This obligation was classified as
                  long-term since the Company intends to finance the payment
                  on a long-term basis and has a specific long-term financing
                  arrangement in place for such purpose on terms that are
                  readily determinable. The excess of the aggregate purchase
                  price over the estimated fair market value of the net assets
                  acquired was approximately $.897 million, which is being
                  amortized on a straight-line basis over 15 years.

                  The following summary presents unaudited proforma
                  consolidated results of operations as if the acquisition had
                  occurred at the beginning of 2000 and 1999, and include
                  adjustments for estimated amounts of goodwill amortization,
                  depreciation of fixed assets acquired based on their
                  estimated fair values, increased interest expense assuming
                  the purchase consideration had resulted in additional
                  borrowing during the periods presented. The pro forma
                  results are for illustrative purposes only, and do not
                  purport to be indicative of the actual results which would
                  have occurred had the transaction been consummated as of the
                  earlier dates, nor are they indicative of results of
                  operations which may occur in the future. The results do not
                  reflect synergies.


<TABLE>
<CAPTION>
                  Nine Months Ended September 30,                     2000             1999
                  ----------------------------------------------------------------------------
                  <S>                                                  <C>         <C>
                  In thousands, except per share amounts (unaudited)
                  Net Sales                                            $25,260      $22,063
                  Net Earnings (Loss)                                     (370)        (231)
                  Net Earnings (Loss) per Common Share                    (.23)        (.15)
</TABLE>


                                      7








<PAGE>   9


Note 5.
                         In the first quarter of 2001, the Company plans to
                  adopt Statement of Financial Standards (SFAS) No. 133,
                  "Accounting for Derivative Instruments and Hedging
                  Activities." This standard, as amended, will require the
                  Company to recognize all derivative financial instruments on
                  the balance sheet at fair value with changes in fair value
                  recorded to the statement of operations or comprehensive
                  income, depending on the nature of the investment. The
                  Company has not yet determined the effect that this standard
                  will have, if any, on the Company's consolidated financial
                  position, results of operations and cash flows.

                        In September 2000, the Financial Accounting Standards
                  Board issued SFAS No. 140, "Accounting for Transfers and
                  Servicing of Financial Assets and Extinguishment of
                  Liabilities," which supercedes SFAS No. 125, "Accounting for
                  Transfers and Servicing of Financial Assets and
                  Extinguishments of Liabilities." This standard is effective
                  for transfers occurring after March 31, 2001, with certain
                  disclosure requirements effective for the year ending
                  December 31, 2000. The Company does not believe the adoption
                  of this standard will have a significant impact on the
                  Company's consolidated financial position, results of
                  operations or cash flows.

                        In December 1999, the Securities and Exchange
                  Commission (SEC) issued Staff Accounting Bulletin No. 101
                  (SAB 101), "Revenue Recognition in Financial Statements,"
                  which provides guidance on the recognition, presentation and
                  disclosure of revenue in financial statements filed with the
                  SEC. SAB 101, as amended, is required to be adopted by the
                  Company no later than the fourth quarter of fiscal year
                  2000. Although the Company has not fully assessed the
                  implications of SAB 101, management does not believe the
                  adoption of SAB 101 will have a significant impact on the
                  Company's consolidated financial position, results of
                  operations or cash flows.




                                      8


<PAGE>   10

                             DANIEL GREEN COMPANY



 Item 2          Management Discussion & Analysis of Financial Condition and
                              Results of Operations

 1.       Liquidity and Capital Resources

         As disclosed in Note 3 to the Consolidated Financial Statements
included herein, the Company acquired L.B. Evans & Son Company Limited
Partnership ("Evans") and all of the outstanding stock of Penobscot Shoe
Company (Penobscot) during the quarter ended March, 2000.

         At September 30, 2000, the Daniel Green Company had working capital
of approximately $16,754,000 versus approximately $4,414,000 as of December
31, 1999. The ratio of current assets to current liabilities at September 30,
2000 was 3.75 to 1, compared to 2.19 to 1 at December 31, 1999.

          The statement of cash flows for the nine months ended September 30,
2000, shows an increase in cash and cash equivalents of approximately $85,000
since December 31, 1999. Operating activities used $3,300,461 in cash
primarily as a result of the net loss for the period and increases in accounts
receivable and inventories. These uses of cash were partially offset by an
increase in accounts payable. Purchases of property and equipment, mainly for
data processing and warehousing, used approximately $282,000 during the nine
month period.

         At the end of the third quarter of 2000, total indebtedness consisted
of: line of credit balance, noncurrent of $11,119,228, notes payable, current
$910,668, notes payable, noncurrent $5,780,481, and a liability related to the
dissenting stockholders of Penobscot of $1,875,156; a total debt of
$19,685,533.

         As of August 11, 1999 the Company had in place a revolving line of
credit ("revolver"), with Manufacturers and Traders Trust Company (M&T Bank),
Buffalo, New York, which provided the Company with a $5,500,000 revolving line
of credit and a $838,097 mortgage/term loan (80% guaranteed by FMHA). The
revolver is secured by accounts receivable, inventory, equipment and cash. The
revolving line termination date is July 30, 2002. The interest rate
established on the revolving line is prime rate plus one percent (1%) per
annum. The mortgage term loan is secured by the Company's facilities and
totaled $782,981 as of September 30, 2000. The mortgage term loan's principal
and interest payments are based on a ten-year amortization with a balloon
payment on April 1, 2001. The mortgage term loan interest rate is LIBOR plus
two and one-quarter percent (2 -1/4%) per annum.

                                      9






<PAGE>   11

         On March 30, 2000, the Company entered into a new loan agreement with
M&T Bank to support recent acquisition and working capital requirements. The
prior agreement was amended in is entirety to, among other things:

         -  Provide a revolving credit facility in the maximum principal
            amount of $12,500,000;

         -  Provide an additional term loan facility in the principal amount
            of $6,000,000;

         -  Provide a supplement loan facility in the principal amount of up
            to $2,800,000;

         -  Convert the Revolving Line Loan under the prior agreement into
            loans under this agreement;

         -  Add Penobscot as a borrower under this agreement; and

         -  Make certain other changes to the terms and conditions of the
            prior agreement.

         Management is not aware of any known demands, commitments or events
         that would materially affect its liquidity. There are no material
         expenditures or commitments, which would affect capital resources in
         a significant way. Cash generated by operations, supplemented by
         borrowings, should cover planned requirements.

2.       Results of Operations

Net sales for the third quarter were $11,192,000, compared to sales of
$3,695,000 in the corresponding quarter last year. Included in the current
quarter were net sales of $7,133,000 attributable to the brands acquired with
Penobscot Shoe.

The gross margin in the current quarter was approximately 36% compared to a
30% in the same quarter last year. The additional brands acquired by the
Company provided for a larger sales base and a higher margin.

Selling, general and administrative expenses in the third quarter increased
from expenses reported during the comparable period of 1999 as a result of the
significantly higher level of business activity associated with the
acquisitions and start-up of new software systems. As a percentage of sales,
selling, general and administrative in the third quarter of 2000 were 26%,
compared to 27% in the comparable period of 1999.

During the third quarter, net interest expense amounted to $451,000 compared
to $65,000 last year.




                                      10


<PAGE>   12

 Part II - Other Information

1.       Legal Proceedings

         (a) On October 16, 2000 the company settled a lawsuit filed in the
         United States District Court for the Southern District of New York by
         Group USA, Inc. alleging trademark infringement and unfair
         competition. The parties reached a non-monetary settlement.

2.       Changes in Securities - None.

3.       Default upon Senior Securities - None.

4.       Submission of matters to a vote of security holders. - None

5.       Other Information - None.




                                      11


<PAGE>   13


6.       Exhibits and Reports on Form 8K - None.

         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.


                                         DANIEL GREEN COMPANY
                                         Registrant

Date: November 20, 2000              /s/ Robert M. Weedon
      -----------------              ----------------------------
                                         Robert M. Weedon
                                         Chief Financial Officer,



                                         /s/ James R. Riedman
                                         ------------------------
                                         JAMES R. RIEDMAN, CEO






                                      12