SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

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

                                    FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

   (Mark One)

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

For the quarterly period ended           June 28, 1997
                               -----------------------------------

                                       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               0-19596
                       -----------------------------------

                             SLM INTERNATIONAL, INC.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)

            Delaware                                          13-36-32297
 -------------------------------                          -------------------
 (State or other jurisdiction of                             (IRS Employer
 incorporation or organization)                           Identification No.)

 c/o Maska U.S., Inc., 139 Harvest Lane, PO Box 1200, Williston, VT    05495
 ------------------------------------------------------------------------------
             (Address of principal executive offices)                (Zip code)

Registrant's telephone number, including area code        518-773-4401
                                                   ----------------------------

     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 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
               ----                                     ----

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

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

            Class                          Outstanding at August 15, 1997
-------------------------------------------------------------------------------
         Common Stock,                               6,500,000
        $.01 par value


<PAGE>

                             SLM INTERNATIONAL, INC.
                                    FORM 10-Q

                                      INDEX

                                                                        PAGE NO.
--------------------------------------------------------------------------------

Part I     Financial Information
--------------------------------

Item 1.    Financial Statements

           Unaudited Consolidated Statements of Operations
           for April 12 through June 28, 1997, March 30 through
           April 11, 1997, January 1 through April 11, 1997 and the
           three months and six months ended June 29, 1996                  1

           Unaudited Consolidated Balance Sheets at
           June 28, 1997 and December 31, 1996                              2

           Unaudited Consolidated Statements of Cash Flows for
           April 12 through June 28, 1997, January 1 through 
           April 11, 1997 and the six months ended June 29, 1996            3

           Notes to Unaudited Consolidated Financial Statements             4


Item 2.    Management's Discussion and Analysis of Financial
           Condition and Results of Operations                             13

Part II    Other Information
----------------------------

Item 1.    Legal Proceedings                                               17

Item 5.    Other Information                                               17

Item 6.    Exhibits and Reports on Form 8-K                                17


<PAGE>


                                                 SLM INTERNATIONAL, INC.
                                          CONSOLIDATED STATEMENTS OF OPERATIONS
                                                      (UNAUDITED)
                                            (In thousands, except share data)

<TABLE>
<CAPTION>

                                                       Reorganized
                                                         Company                            Predecessor Company
                                                       -----------       ----------------------------------------------------------
                                                           1997                   1997                            1996
                                                       -----------       ------------------------     -----------------------------
                                                           (a)
                                                         April 12        March 30       January 1     Three Months      Six Months
                                                         through          through        through          Ended            Ended
                                                         June 28         April 11       April 11         June 29          June 29
                                                     ------------------------------------------------------------------------------
<S>                                                  <C>                  <C>            <C>             <C>              <C>    
Net sales                                            $   28,077           $ 3,824        $25,539         $33,252          $59,715

Cost of goods sold                                       16,911             2,409         16,007          21,371           37,656
                                                     ------------------------------------------------------------------------------
     Gross profit                                        11,166             1,415          9,532          11,881           22,059

Selling, general and administrative expenses              7,429             2,104         11,321          10,809           21,228
Restructuring charges (see Note 6)                                                         6,315
                                                     ------------------------------------------------------------------------------
     Operating  income (loss)                             3,737              (689)        (8,104)          1,072              831

Debt related fees (see Note 7)                                                311          1,243           1,912            3,626

Other expense (income), net                                 432               114            193             (18)              37

Interest expense                                          1,100                92            114           3,097            6,280
                                                     ------------------------------------------------------------------------------
     Income (loss) before income taxes and
     extraordinary gain on discharge of debt              2,205            (1,206)        (9,654)         (3,919)          (9,112)

Income taxes                                                160                32             32
                                                     ------------------------------------------------------------------------------
     Income (loss) before extraordinary gain on
     discharge of debt                                    2,045            (1,238)        (9,686)         (3,919)          (9,112)

Extraordinary gain on discharge of debt                                    58,726         58,726
                                                     ------------------------------------------------------------------------------
Net income (loss)                                    $    2,045           $57,488        $49,040         $(3,919)         $(9,112)
                                                     ==============================================================================

Net income per share (b)                             $     0.31
                                                     ===============

Average shares outstanding (b)                        6,500,000
                                                     ===============

(a)  Due to the Reorganization Plan and implementation of fresh-start
     reporting, financial statements after April 11, 1997 for the
     reorganized company are not comparable to financial statements prior to
     that date. See "Notes to Unaudited Consolidated Financial Statements"
     for more information on the Reorganization Plan and implementation of
     fresh-start reporting. (See "Management's Discussion and Analysis"
     (page 13) for comparison purposes.)
(b)  Common shares and per share data for periods prior to April 12, 1997
     are omitted because, due to the Reorganization Plan and implementation
     of fresh-start reporting, they are not meaningful.

          The accompanying notes are an integral part of the unaudited
                       consolidated financial statements.

</TABLE>

                                       1


<PAGE>


                                                  SLM INTERNATIONAL, INC.
                                                CONSOLIDATED BALANCE SHEETS
                                                        (UNAUDITED)
                                                      (In thousands)

<TABLE>
<CAPTION>
                                                                            Reorganized        Predecessor
                                                                              Company            Company
                                                                           June 28, 1997      Dec. 31, 1996
                                                                     -----------------------------------------
ASSETS
------
<S>                                                                          <C>                 <C>
CURRENT ASSETS
Cash and cash equivalents                                                    $  1,885            $ 35,589
Accounts receivable, net                                                       25,671              33,313
Inventories (see Note 8)                                                       39,758              37,179
Prepaid expenses and other assets                                               5,529               5,757
Net assets of discontinued operations                                                                 189
                                                                     -----------------------------------------
       Total current assets                                                    72,843             112,027
Property, plant and equipment, net                                              9,848              12,817
Intangible and other assets, net                                               49,876                  81
                                                                     -----------------------------------------
       Total assets                                                          $132,567            $124,925
                                                                     =========================================
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
----------------------------------------------
CURRENT LIABILITIES
Short-term debt (see Note 9)                                                 $  9,821            $
Accounts payable and accrued liabilities                                       18,389              15,297
Long-term debt, current portion                                                 1,484                 369
Income taxes payable                                                              777                 648
Current portion of liabilities subject to compromise under
    reorganization proceedings                                                  2,130              45,035
                                                                     -----------------------------------------
       Total current liabilities                                               32,601              61,349
Long-term debt (see Note 9)                                                    30,737
Other liabilities                                                                 491                 601
Liabilities subject to compromise under
    reorganization proceedings                                                                    160,164
                                                                     -----------------------------------------
       Total liabilities                                                       63,829             222,114
                                                                     -----------------------------------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock                                                                       65                 189
Additional paid-in capital                                                     66,507              88,564
Retained earnings (deficit)                                                     2,008            (182,291)
Foreign currency translation adjustments                                          158              (3,651)
                                                                     -----------------------------------------
       Total stockholders' equity (deficit)                                    68,738             (97,189)
                                                                     -----------------------------------------
       Total liabilities and stockholders'  equity (deficit)                 $132,567            $124,925
                                                                     =========================================

</TABLE>

Due to the Reorganization Plan and implementation of fresh-start reporting,
financial statements after April 11, 1997 for the reorganized company are not
comparable to financial statements prior to that date. See "Notes to Unaudited
Consolidated Financial Statements" for more information on the Reorganization
Plan and implementation of fresh-start reporting.

          The accompanying notes are an integral part of the unaudited
                       consolidated financial statements.


                                       2

<PAGE>


                                                  SLM INTERNATIONAL, INC.
                                           CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                        (UNAUDITED)
                                                      (In thousands)

<TABLE>
<CAPTION>

                                                              Reorganized
                                                                Company                  Predecessor Company
                                                              -----------       ---------------------------------------
                                                                  1997                1997                  1996
                                                              -----------          -----------           -----------
                                                            April 12 through    January 1 through     Six months ended
                                                                June 28             April 11               June 29
                                                           ------------------------------------------------------------
OPERATING ACTIVITIES:
<S>                                                            <C>                 <C>                    <C>      
Net income (loss)                                              $ 2,045             $ 49,040               $ (9,112)

Adjustments to reconcile net income (loss) to net cash 
     provided by (used in) operating activities:

       Restructuring charges                                                          6,315

       Depreciation and amortization                             1,189                  807                  1,406

       Provisions for inventory, doubtful accounts and
           other deductions                                      2,384                2,301                  5,340

       Loss (gain) on sale and disposal of fixed assets            (26)                   5                    (31)

       Extraordinary gain on discharge of debt                                      (58,726)

       Loss (gain) on foreign exchange                             (84)                 263                     91

Change in operating assets and liabilities:

       Accounts receivable                                       1,304                  965                  3,438

       Inventories                                              (4,875)                 884                 (8,981)

       Prepaid expenses and other assets                           599                  816                   (722)

       Accounts payable and accrued liabilities                 (9,464)               4,576                  6,873

       Discontinued operations                                                          189                  3,946
                                                           ---------------------------------------------------------
           Net cash provided by (used in) operating
              activities                                        (6,928)               7,435                  2,248
                                                           ---------------------------------------------------------
INVESTING ACTIVITIES:

       Proceeds from sale of subsidiary                          2,125

       Purchases of fixed assets                                  (328)                (285)                (1,342)

       Proceeds from sales of fixed assets                          27                   73                    165
                                                           ---------------------------------------------------------
           Net cash provided by (used in) investing
              activities                                         1,824                 (212)                (1,177)
                                                           ---------------------------------------------------------
FINANCING ACTIVITIES:

       Short-term borrowings, net                                4,721

       Principal payments on debt                               (2,196)                 (89)                (3,858)

       Deferred financing costs                                                      (2,146)

       Liabilities subject to compromise                                            (36,099)

                                                           ---------------------------------------------------------
           Net cash provided by (used in) financing
              activities                                         2,525              (38,334)                (3,858)
                                                           ---------------------------------------------------------
Effects of foreign exchange rate changes on cash                     8                  (22)                    (2)
                                                           ---------------------------------------------------------
Decrease in cash                                                (2,571)             (31,133)                (2,789)

Cash at beginning of period                                      4,456               35,589                 18,605
                                                           ---------------------------------------------------------
Cash at end of period                                          $ 1,885             $  4,456                $15,816
                                                           =========================================================

</TABLE>

Due to the Reorganization Plan and implementation of fresh-start reporting,
financial statements after April 11, 1997 for the reorganized company are not
comparable to financial statements prior to that date. See "Notes to Unaudited
Consolidated Financial Statements" for more information on the Reorganization
Plan and implementation of fresh-start reporting.


              The accompanying notes are an integral part of the unaudited
                       consolidated financial statements.


                                       3


<PAGE>


                             SLM INTERNATIONAL, INC.
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                        (In thousands, except share data)


1.  BASIS OF PRESENTATION

The accompanying unaudited interim consolidated financial statements include the
accounts of SLM International, Inc. ("SLM") and subsidiaries (collectively the
"Company"). All significant intercompany transactions and accounts are
eliminated.

SLM and six of its subsidiaries (collectively, the "Debtors", or the
"Predecessor Company") filed voluntary petitions for relief under Chapter 11 of
the United States Bankruptcy Code (the "Filing") in the United States Bankruptcy
Court for the District of Delaware (the "Bankruptcy Court") on October 24, 1995
(the "Petition Date"). On September 12, 1996, the Debtors filed a Chapter 11
Plan of Reorganization and on November 13, 1996, the Debtors filed a First
Amended Chapter 11 Plan of Reorganization, as amended from time to time (the
"Reorganization Plan") with the Bankruptcy Court. On January 23, 1997, the
Bankruptcy Court confirmed the Reorganization Plan which became effective on
April 11, 1997 (the "Effective Date") and the Debtors emerged from bankruptcy
("Reorganized Company") (see Notes 2 and 4).

The accompanying unaudited interim consolidated financial statements have been
prepared in accordance with generally accepted accounting principles applicable
to a going concern which, except as otherwise disclosed, assumes that assets
will be realized and liabilities will be discharged in the normal course of
business. The financial statements for periods preceding the Effective Date do
not include any adjustments which resulted from the Reorganization Plan. The
Reorganization Plan had a significant impact on the financial statements of the
Reorganized Company and the Company accounted for such Reorganization Plan using
"fresh-start" reporting (see Note 2).

In the opinion of management, all normal recurring adjustments necessary for a
fair presentation of the Company's Unaudited Consolidated Statements of
Operations, Balance Sheets and Statements of Cash Flows for the interim periods
in 1997 and in 1996 have been included. These unaudited interim consolidated
financial statements do not include all of the information and footnotes
required by generally accepted accounting principles to be included in a full
set of financial statements. Results for the interim period are not necessarily
a basis from which to project results for the full year due to the seasonality
of the Company's business and the Filing. These unaudited consolidated financial
statements should be read in conjunction with the Company's annual report on
Form 10-K filed with the Securities and Exchange Commission for the year ended
December 31, 1996. Certain prior period amounts have been reclassified to
conform to the current period presentation.

2.  REORGANIZATION CASE

On June 26, 1996, the Debtors announced that they entered into an agreement with
representatives of the Debtors' Noteholders and trade and other unsecured
creditors (the "Unsecured Creditors Committee") on a term sheet (the "Term
Sheet") setting forth the material provisions of a Reorganization Plan.
Thereafter, the Debtors and Unsecured Creditors Committee reached an agreement
in principle with assignees of the Debtors' former lenders (the "Secured
Creditor Group") on the terms of the Reorganization Plan. On September 12, 1996,
the Debtors filed with the Bankruptcy Court a proposed Chapter 11 Plan of
Reorganization (the "Proposed Plan"). On September 19, 1996, the Debtors filed
with the Bankruptcy Court a Disclosure Statement Pursuant to Section 1125 of the
Bankruptcy Code incident to the Proposed Plan. After further negotiations and
term modifications among the Debtors and their creditor constituencies, on
November 13, 1996, the Debtors filed with the Bankruptcy Court the
Reorganization Plan and the First Amended Disclosure Statement Pursuant to
Section 1125 of the Bankrupcty Code incident to the Reorganization Plan. On
November 19, 1996, the Bankruptcy Court approved the adequacy of the First
Amended Disclosure Statement as modified in open court (the "Disclosure
Statement"). On January 23, 1997, the Bankruptcy Court entered an order
confirming the Reorganization Plan as modified, the effectiveness of which was
contingent upon, among other things, the completion of a secured credit
facility. The Reorganization Plan represents the culmination of management
analyses and negotiation amongst representatives of principal parties in
interest regarding the best means to maximize and to allocate value to the
Debtors' creditors and stockholders in accordance with their legal and
contractual rights and priorities with due regard to the potential causes of
action and claims that could be asserted against and by certain creditors. Upon
the satisfaction of all conditions precedent to the occurrence of the Effective
Date, the Reorganization Plan was declared effective on April 11, 1997.

                                       4


<PAGE>

                             SLM INTERNATIONAL, INC.
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                        (In thousands, except share data)


Under the Reorganization Plan, among other things:

o    The Debtors' secured creditors received $44,213 in cash, $29,500 principal
     in new senior notes (the "New Senior Notes") and 2,470,000 shares of new
     common stock (the "New Common Stock") of the Reorganized Company, in
     exchange for approximately $108,000 of secured and unsecured indebtedness
     (which amount includes the secured creditors estimate of post-filing
     interest and expenses). The 2,470,000 shares of New Common Stock
     represented (before dilution) 38.0% of the ownership of the Reorganized
     Company. The lenders sold such shares to W.S. Acquisition L.L.C. on
     the Effective Date. The New Senior Notes have a term of seven years with
     principal payments beginning in the fifth year. Interest thereon is due and
     payable semi-annually at 14.0% (including 4.0% payable in kind ("PIK"),
     with such PIK interest reduced permanently if the Reorganized Company
     achieves certain earnings levels established in the Reorganization Plan).
     The New Senior Notes are pre-payable at 101% of principal plus accrued
     interest, are secured by a lien on substantially all of the Reorganized
     Company`s assets, subordinate only to the Reorganized Company's new secured
     credit facilities, and have covenants, representations and other terms
     customary in instruments of this nature.

o    The Debtors' unsecured creditors received: 4,030,000 shares of New Common
     Stock representing, at the time of issuance, 62.0% of the distributed
     equity in the Reorganized Company, subject to dilution upon the exercise of
     warrants distributed to equity security holders and stock options which may
     be issued to the Company's officers and key personnel (up to 15.0% of the
     New Common Stock at varying exercise prices), in exchange for approximately
     $120,000 of unsecured indebtedness. For purposes of the Reorganization
     Plan, the New Common Stock was valued at approximately $10.16 per share.

o    The Company's equity security holders (who held 18,859,679 shares of Common
     Stock plus the 1,000,000 shares to have been issued pursuant to the
     settlement of a securities litigation lawsuit (see Note 10)) received a
     total of 300,000 5-year warrants to purchase an aggregate of 300,000 shares
     of New Common Stock at an exercise price of $16.92 per share. In addition,
     the warrant holders have the option to receive an aggregate payment of $500
     upon cancellation of such warrants in connection with a sale of the
     Reorganized Company for more than $140,000.

The Reorganization Plan also provided for other terms including: structured
settlements with Fleet Credit Corporation (in connection with its claims arising
from equipment financing), NHL Enterprises, Inc. and its affiliates (in
connection with their claims arising from royalty obligations under licenses
with the Company and alleged infringement of their property) and with the
lessors under certain leases of real property (which lessors were former
officers and directors of the Company); the incorporated Consent Decree entered
in Vermont Superior Court by agreement with Maska U.S., Inc. ("Maska"); and an
overall structured settlement among and between all of the creditor classes
which resulted in, among other things, the recoveries described above for the
secured creditors and unsecured creditors collectively as well as an
intra-creditor structured recovery resulting (depending on the ultimate
resolution of disputed claims) in the Company's former Senior Noteholders
realizing approximately 40.9% on their claims, Maska's unsecured creditors
realizing approximately 56.6% on their claims and the unsecured creditors of the
other Debtors realizing approximately 31.9% on their claims.

3.  LIABILITIES SUBJECT TO COMPROMISE UNDER REORGANIZATION PROCEEDINGS

Substantially all the Company's liabilities as of the Petition Date were subject
to settlement under a plan of reorganization, except as otherwise provided by
order of the Bankruptcy Court. The Company was generally not permitted to make
payments with respect to its pre-Petition Date liabilities until a plan of
reorganization was confirmed by the Bankruptcy Court and consummated.

                                            June 28, 1997     Dec. 31, 1996
                                            -------------     -------------
  Priority Claims                              $2,130            $    661
  Secured Debt
         Principal                                                 92,045
         Interest                                                  12,838
  General Unsecured Claims                                         14,990
  Unsecured Debt, Principal and Interest                           84,665
  -------------------------------------------------------------------------
                                               $2,130            $205,199
  =========================================================================


                                       5


<PAGE>

                             SLM INTERNATIONAL, INC.
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                        (In thousands, except share data)


Priority claims, the repayment of which the Company is required to prioritize
under bankruptcy law, are comprised principally of income and property tax
claims. Priority claims at June 28, 1997 remain subject to resolution with the
Bankruptcy Court.

The Company has recorded interest expense only to the extent paid or earned
during the proceedings and to the extent it was probable that the Bankruptcy
Court would allow interest on pre-Petition Date debt as a priority, secured or
unsecured claim. The excess contractual interest expense over recorded interest
expense for the year ended December 31, 1995 and through the six months ended
June 29, 1996 was approximately $2,100 and $9,600, respectively, and $3,800 for
the three months ended June 29, 1996. There was no interest expense recorded in
1997 on pre-Petition debt.

4.   FRESH-START REPORTING

In connection with the emergence from bankruptcy, the Company adopted
fresh-start reporting, as of April 11, 1997, in accordance with the requirements
of Statement of Position 90-7, Financial Reporting by Entities in Reorganization
Under the Bankruptcy Code ("SOP 90-7").

In applying fresh-start reporting, the value of the Reorganized Company was
allocated to the Company's net assets in conformity with the procedures
specified by Accounting Principles Board Opinion No. 16 Business Combinations.
SOP 90-7 required a determination of the Company's reorganizational value,
representing the fair value of all of the Company's assets and liabilities, and
an allocation of such values to the assets and liabilities (excluding deferred
taxes) based on their relative fair values with the excess in reorganizational
value over market values recorded as an intangible asset. As a result, the
carrying values of the Company's assets and liabilities were adjusted to fair
value as of April 11, 1997. Reorganizational value in excess of amounts
allocable to identifiable assets of approximately $48,000 is being amortized on
a straight line basis over twenty years. The application of SOP 90-7 resulted in
the creation of a new reporting entity having no retained earnings or
accumulated deficit.

For the purpose of the Reorganization Plan, the reorganizational equity value
was estimated to be $66,600, based in part on management's estimates of future
operating results. Reorganizational value necessarily assumes that the
Reorganized Company will achieve its estimated future operating results in all
material respects. If such results are not achieved, the value of the
Reorganized Company that is ultimately realized could be materially different.

The Reorganization Plan had significant impacts on the financial statements of
the Reorganized Company, including the creation of a new reporting entity upon
emergence from bankruptcy through the application of fresh-start reporting
pursuant to SOP 90-7. Accordingly, the Company's post-Reorganization balance
sheets, statements of operations and statements of cash flows, which reflect the
application of fresh-start reporting, have not been prepared on a consistent
basis with the pre-Reorganization financial statements and are not comparable in
all respects to the financial statements prior to the Reorganization. For
accounting purposes, the inception date of the Reorganized Company is deemed to
be April 12, 1997.

The effects of the Reorganization Plan and fresh-start reporting on the
Company`s balance sheet at April 11, 1997 are as follows:


                                       6


<PAGE>


                                          SLM INTERNATIONAL, INC.
                           NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                                     (In thousands, except share data)


                                   CONDENSED CONSOLIDATED BALANCE SHEET
                                              April 11, 1997
                                                (Unaudited)
<TABLE>
<CAPTION>

                                                                     PREDECESSOR                            REORGANIZED
ASSETS                                                                 COMPANY        ADJUSTMENTS             COMPANY
                                                                   -------------------------------------------------------
<S>                                                                   <C>              <C>                   <C>     
      Cash                                                            $  40,555        $ (36,098) a          $  4,457
      Other current assets                                               64,877             (189) b            64,688
                                                                   -------------------------------------------------------
             Total current assets                                       105,432          (36,287)              69,145
         Property, plant and equipment                                   10,382                                10,382
         Intangible and other assets, net                                 1,494           48,979  c            50,473
                                                                   -------------------------------------------------------
             Total assets                                             $ 117,308        $  12,692             $130,000
                                                                   =======================================================
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

     Short-term debt                                                  $                $   5,100  d          $  5,100
     Accounts payable and accrued liabilities                            18,029            3,162  e            21,191
     Long term debt, current portion                                        280            1,202  f             1,482
     Current portion of liabilities subject to compromise
         under reorganization proceedings                                45,035          (42,905) g             2,130
                                                                   -------------------------------------------------------
         Total current liabilities                                       63,344          (33,441)              29,903
     Long-term debt                                                                       32,935  f            32,935
     Other liabilities                                                      590                                   590
     Liabilities subject to compromise under reorganization
         proceedings                                                    160,164         (160,164) g
                                                                   -------------------------------------------------------
         Total liabilities                                              224,098         (160,670)              63,428
                                                                   -------------------------------------------------------
     Stockholders' equity (deficit)                                    (106,790)         173,362  h            66,572
                                                                   -------------------------------------------------------
         Total liabilities and stockholders' equity (deficit)         $ 117,308        $  12,692             $130,000
                                                                   =======================================================

</TABLE>

The following is a brief description of the adjustments made in preparing the
above Condensed Consolidated Balance Sheet (unaudited).

a.   To reflect $45,198 paid out in accordance with the Reorganization Plan, net
     of $9,100 borrowed under new credit facilities.

b.   To reflect the distribution of Net assets of discontinued operations
     pursuant to the Reorganization Plan.

c.   To record excess of identifiable asset value as a result of fresh-start
     reporting, including principally a valuation associated with the Company's
     trademarks and costs associated with obtaining new credit facilities.

d.    To record borrowings under new credit facilities.

e.   To record accounts payable and accrued liabilities incurred pursuant to the
     Reorganization Plan.

f.   To record long-term debt under new credit facilities, New Senior Notes and
     other long-term debt incurred pursuant to the Reorganization Plan.

g.   To eliminate liabilities in accordance with the Reorganization Plan. The
     Reorganization Plan resulted in an extraordinary gain on debt forgiveness
     of approximately $58,726.

h.   To reflect fresh-start reporting and the new equity structure of the
     Reorganized Company pursuant to the Reorganization Plan.


                                       7


<PAGE>

                             SLM INTERNATIONAL, INC.
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                        (In thousands, except share data)


The following Pro Forma Condensed Consolidated Statement of Operations for the
six months ended June 28, 1997 has been prepared giving effect to the
consummation of the Reorganization Plan, including the implementation of
fresh-start reporting, as if consummation had occurred on January 1, 1997. Due
to the Reorganization Plan and implementation of fresh-start reporting,
financial statements effective April 12, 1997 for the Reorganized Company are
not comparable to financial statements prior to that date for the Predecessor
Company. However, for presentation of this statement, total results for 1997 are
shown under the caption "Total Before Adjustments". The adjustments which give
effect to the events that are directly attributable and expected to have a
continuing impact on the Reorganized Company and which are set forth under the
caption "Adjustments" reflect the implementation of the Reorganization Plan and
the adoption of fresh-start reporting as if they had occurred on January 1,
1997.

            PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
                     For the six months ended June 28, 1997
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                      TOTAL BEFORE
                                                                       ADJUSTMENTS        ADJUSTMENTS       PRO FORMA
                                                                  -------------------------------------------------------
<S>                                                                     <C>                <C>                      
Net sales                                                               $53,616            $                 $53,616
                                                                  --------------------------------------------------------
Operating income (loss)                                                  (4,367)              6,315  a         1,948

Debt related fees                                                         1,243              (1,243) b

Other expense (income), net                                                 625                 917  c         1,542

Interest expense                                                          1,214               1,464  d         2,678
                                                                  --------------------------------------------------------

(Loss) income before income taxes and extraordinary gain on
     discharge of debt                                                   (7,449)              5,177           (2,272)

Income taxes                                                                192                                  192
                                                                  --------------------------------------------------------

Net (loss) before extraordinary gain on discharge of debt                (7,641)              5,177           (2,464)

Extraordinary gain on discharge of debt                                  58,726             (58,726) e
                                                                  --------------------------------------------------------

Net income (loss)                                                       $51,085            $(53,549)         $(2,464)
                                                                  ========================================================

</TABLE>

The following is a brief description of the adjustments made in preparing the
Pro Forma Condensed Consolidated Statement of Operations (unaudited).

a.   To reflect adjustments for restructuring charges.

b.   To reflect adjustments for costs incurred by the Company outside of its
     continuing operations.

c.   To reflect amortization of the intangible associated with fresh-start
     reporting.

d.   To reflect incremental interest expense associated with the Company's new
     credit facilities and New Senior Notes.

e.   To reflect adjustments for extraordinary gain on discharge of debt.


                                       8


<PAGE>


                             SLM INTERNATIONAL, INC.
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                        (In thousands, except share data)


5.  SALE OF SUBSIDIARY

In May 1997, the Company sold for cash of $2,125 the shares of one of its wholly
owned subsidiaries, Mitchel & King Skates Limited. The operating results of
Mitchel & King Skates Limited are reflected in the Company's consolidated
financial statements through the date of sale.

6.  RESTRUCTURING CHARGES

During the six months ended June 28, 1997, the Company recorded significant
restructuring charges totaling $6,315 to reflect the impact of reorganizing
operations strategically to position itself to sustain ongoing profitability.
These costs consist primarily of lease cancellation costs ($2,257) at its
Peterborough, N.H. and Beauport, Quebec facilities, impairment of fixed assets
($1,659), principally leasehold improvements at its Peterborough, N.H. facility,
and severance and employee costs associated with the shutdown of three of the
Company's manufacturing facilities.

7.  DEBT RELATED FEES AND DEFAULT INTEREST

As a result of the Filing, the Company incurred significant legal and
professional fees totaling $311 and $1,912 for the three months ended and $1,243
and $3,626 for the six months ended June 28, 1997 and June 29, 1996
respectively. These fees include the cost of the Company's legal counsellors,
financial advisors and consultants, as well as those of its bankers, Senior
Noteholders and creditors. The debt related fees are net of $99 and $223 of
interest earned on accumulated cash resulting from the Filing for the three
months ended June 28, 1997 and June 29, 1996 and $500 and $322 for the six
months then ended. These costs are included as Debt Related Fees in the
Unaudited Consolidated Statement of Operations for the periods then ended.

Additionally, as a result of the Company's defaults under its financing
agreements, its financial condition and the terms of Standstill Agreements with
its lenders, since February 1995 the Company was charged an additional 3.0%
interest on its bank debt. The higher interest rates resulted in incremental
interest expense of $547 and $1,554 for the three months and six months ended
June 29, 1996, respectively, which is included in Interest Expense in the
Unaudited Consolidated Statements of Operations.

8.  INVENTORIES

Inventories consist of:

                                         June 28, 1997        Dec. 31, 1996
                                         -------------        -------------
       Finished products                    $31,385             $26,592
       Work in process                        1,734               2,669
       Raw materials and supplies             6,639               7,918
                                            -------             -------
                                            $39,758             $37,179
                                            =======             =======

9.  INDEBTEDNESS

A.  NEW INDEBTEDNESS

(i.)  BANK AGREEMENTS

On the Effective Date of the Reorganization Plan, SLM and two of its U.S.
subsidiaries, Maska U.S., Inc. and #1 Apparel, Inc. (the "U.S. Subsidiaries"),
entered into a Credit Agreement (the "U.S. Credit Agreement") with the lenders
referred to therein (the "Lenders") and The Chase Manhattan Bank, as Agent
("Chase"). Simultaneously, one of the Company's Canadian subsidiaries, Sport
Maska Inc., entered into a Credit Agreement (the "Canadian Credit Agreement"
and, together with the U.S. Credit Agreement, the "Credit Agreements") with The
Chase Manhattan Bank of Canada ("Chase Canada"). The maximum amount of loans and
letters of credit that may be outstanding under the Credit Agreements is
$74,000, consisting of $35,000 revolving credit loans under the U.S. Credit
Agreement, $35,000 of revolving credit loans under the Canadian Credit Agreement
and a $4,000 term loan (which was permanently reduced by $2,125 in June 1997
with the proceeds from the sale of one of the Company's subsidiaries) under the
U.S. Credit Agreement. Borrowings under the Credit Agreements are guaranteed by
certain subsidiaries and are collateralized by substantially all of the assets
(including, without limitation, accounts receivable, inventory and the stock of
certain subsidiaries) of the Company, the two U.S. Subsidiaries referred to
above and the Company's other subsidiaries which are guarantors. Total amounts
outstanding under the Credit Agreements were $9,100 and $11,696 at April 14,
1997 and June 28, 1997, respectively.

Borrowings under the U.S. Credit Agreement bear interest at an alternate base
rate plus 1% per annum or at an interest rate based on LIBOR plus 2 3/4% per
annum. Borrowings under the Canadian Credit Agreement bear


                                        9


<PAGE>

                             SLM INTERNATIONAL, INC.
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                        (In thousands, except share data)


interest at Chase Canada's prime rate or at an alternate base rate plus 1% per
annum. In addition, the Company is charged a quarterly commitment fee of up to
3/8 of 1% on the unused portion of the revolving credit facilities under the
Credit Agreements and certain other fees.

The Credit Agreements include customary affirmative and negative covenants,
including those relating to capital expenditures, interest coverage and the
incurrence of additional indebtedness.

(ii.)  NEW SENIOR NOTES

On April 11, 1997 the Company issued $29,500 principal amount of 14% Senior
Secured Notes due April 1, 2004 (the "New Senior Notes"), pursuant to an
Indenture with The Bank of New York, as trustee. The New Senior Notes were
issued by the Company under the Reorganization Plan as partial satisfaction of
the Company's obligations to its former secured lenders under the Loan and
Security Agreement referred to below.

Interest is payable on the New Senior Notes semi-annually at the rate of 14% per
annum, with such interest rate being permanently reduced by up to 4% if the
Company meets certain earnings tests. Further, of the initial 14% interest rate,
10% is payable in cash and 4% is payable by the issuance of additional New
Senior Notes.

The New Senior Notes are guaranteed by certain subsidiaries and are
collateralized by substantially all of the assets of the Company (including,
without limitation, accounts receivable, inventory and the stock of certain
subsidiaries). The lien of the trustee for the benefit of itself and the New
Senior Noteholders is junior to the liens of Chase and Chase Canada. The
Indenture also includes customary affirmative and negative covenants.

B.  OLD INDEBTEDNESS

As a result of the Filing, certain of the Company's indebtedness was
classified as liabilities subject to compromise under reorganization
proceedings, at Decemeber 31, 1996. The Reorganization Plan substantially
altered the rights of most pre-petition unsecured creditors by liquidating their
allowed claims at less than 100% of their face value (see Note 2).

Under the Reorganization Plan, lenders under a Loan and Security Agreement
received (i) $44,213 in cash; (ii) $29,500 principal in New Senior Notes; and
(iii) 2,470,000 shares of New Common Stock, representing approximately 38.0% of
the outstanding New Common Stock. The lenders sold such shares to W.S.
Acquisition L.L.C. on the Effective Date. In addition, holders of the Company's
6.76% Senior Notes due February 15, 2004 and the lender of a note issued to
settle certain litigation received distributions of shares of the Company's New
Common Stock (see Notes 2 and 10).

10.  CONTINGENCIES AND LITIGATION

A.  ENVIRONMENTAL LITIGATION:

In 1991, the Vermont Department of Environmental Conservation ("VTDEC") notified
the Company that the Bradford, Vermont property operated by its wholly-owned
subsidiary, Maska, had been included on the U.S. Environmental Protection
Agency's Comprehensive Environmental Response, Compensation and Liability
Information System and the Vermont Hazardous Sites List and was being evaluated
for possible remedial action. Under relevant environmental laws, Maska, as an
owner of the property, was potentially liable for the entire cost of
investigating and remediating the contamination allegedly emanating from its
Bradford property and certain civil penalties.

Maska undertook its own investigation to determine the extent of contamination,
the rate of movement and the concentration of the contaminants, the appropriate
action required for site remediation and the identification of other parties who
should bear a share of the costs of remediation. The Company is seeking recovery
against the former owners and affiliates of the Bradford property and facility
and the owner of an adjacent parcel for the costs of such investigation and
remediation. During April 1996, Maska and the State of Vermont entered into a
consent decree ("Consent Decree") setting forth the terms under which Maska has
agreed to remediate specified hazardous materials if, and to the extent, found
on the contaminated property or caused by Maska. The Consent Decree was approved
by the Bankruptcy Court on May 14, 1996 and approved and entered in Vermont
Superior Court on June 20, 1996. The Consent Decree is subject to several
conditions, including ongoing payment by the Company of certain State of Vermont
oversight fees up to a maximum of $60 per year. In addition, the Company paid to
Vermont a civil fine stipulated penalty of $250. While the total cost of
investigation and remediation cannot be determined until the investigation
required by VTDEC is complete and the extent of the Company's


                                       10


<PAGE>

                             SLM INTERNATIONAL, INC.
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                        (In thousands, except share data)


remedial obligations have been determined, the Company believes that the
remaining costs will be approximately $1,400 in the aggregate, payable over the
next several years.

Maska commenced an action in the United States District Court for the District
of Vermont (the "Vermont District Court") entitled Maska U.S. Inc. V. Kansa, et
al., Doc. No. 5:93-CV-309 (the "Insurance Litigation") against nine of its
liability insurers seeking coverage for environmental cleanup costs arising out
of claims brought by the State of Vermont and an adjoining landowner for their
failure to defend or to indemnify Maska with respect to these claims.

On September 30, 1996, United States Magistrate Judge Jerome J. Neidermeier
issued a Magistrate Judge's Report and Recommendation (the "Magistrate Report"),
which analyzes legal issues and recommends that the Vermont District Court grant
Maska's motion for partial summary judgment on the issue of the duty to defend.
The report also recommends that all the insurers' motions for summary judgment
be denied, except for two on certain individual policies which Maska conceded
provide no coverage for its claims. On December 2, 1996, Chief Judge J. Garvin
Murtha adopted the Magistrate Report in its entirety. Various motions for
reconsideration of that order and for certification of the issue for immediate
appeal have since been denied. After the completion of limited pre-trial
discovery, the case will be scheduled for trial.

In 1992, the owner of a property adjacent to Maska's manufacturing facility in
Bradford, Vermont, filed an action in Vermont Superior Court alleging that its
property has been contaminated as a result of the Company's manufacturing
activities and seeking compensatory and punitive damages under the Vermont
Groundwater Protection Law and various common law theories. During June 1995,
Maska reached a settlement of all claims with the adjacent landowner consisting
of $1,000 cash (which was paid during July 1995) and a $6,000 note. The Company
recorded a provision of $7,000 for this settlement during the year ended
December 31, 1995. Under the Plan, the adjacent landowner received a
distribution of shares of the Company's New Common Stock to satisfy the note.

A holder of a Maska unsecured claim has asserted an equitable lien on Maska's
recovery, if any, in the Insurance Litigation and also has commenced an
independent action against the defendant insurance companies pursuant to
Vermont's direct action statute. The Company believes that the asserted
equitable lien is without merit and that the independent direct action violated
the automatic stay pursuant to Section 362 of the Bankruptcy Code. The Company
currently is evaluating its options for legal recourse in these matters.

B.  SECURITIES LITIGATION:

On February 14, 1996, the Company, together with certain of its former officers
and directors, reached a settlement with the plaintiffs in a class action
securities litigation. The settlement provides for the cash payment by the
Company's insurer of $8,750, on behalf of certain former officers and directors
of the Company who are defendants. In addition, the Company agreed to issue
1,000,000 shares of its Common Stock which was converted into warrants under the
Reorganization Plan. As a result of the settlement, the Company recorded a
provision of approximately $1,563 (the market value of 1,000,000 shares of
Common Stock on the date the settlement was agreed to) in the year ended
December 31, 1995. During July 1996, the settlement was approved by the
Bankruptcy Court and the U.S. District Court for the Southern District of New
York. Additionally, during August 1996 certain of the Company's creditors filed
an appeal with the Bankruptcy Court with respect to the Bankruptcy Court's
approval of the settlement which was dismissed with prejudice in connection with
the Reorganization Plan.

C.  PRODUCT LIABILITY LITIGATION:

A pre-petition personal injury claim involving a spinal injury which was filed
in 1989 has been asserted against the Company for which the Company did not have
sufficient insurance coverage. That claim and its attendant litigation has been
settled, was approved by the Bankruptcy Court and was treated under the
Reorganization Plan pursuant to the terms of the settlement. The Company is
unaware of any other personal injury claims for which there is not adequate
insurance coverage.

In connection with the claim, American Home Assurance Company ("American Home")
commenced, in 1991, a declaratory judgment action against the Company in the
U.S. District Court for the District of Massachusetts ("Massachusetts District
Court") in respect of its duty to defend and to indemnify the Company and an
action in Quebec Superior Court in Montreal, Canada to recover defense costs.
The Company filed a response to the


                                       11


<PAGE>

                             SLM INTERNATIONAL, INC.
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                        (In thousands, except share data)


declaratory judgment action and a counterclaim in Quebec Superior Court alleging
American Home failed to fulfill its duty to defend the Company. American Home
has alleged that it is entitled to payment in full for any amounts it recovers
against the Company. The Company believes that American Home's claims and
contentions are without merit and, in any event, would be treated under the
Reorganization Plan. In the event that the Company is required to make such a
payment, it anticipates having funds sufficient to meet any Court-ordered
obligation. American Home's claim in respect of the recovery of defense costs
against the Company is in the amount of approximately $575.

Other than certain legal proceedings arising from the ordinary course of
business, which the Company believes will not have a material adverse effect on
the financial position, results of operations, or cash flows, there is no other
litigation pending or threatened against the Company.


                                       12

<PAGE>


                             SLM INTERNATIONAL, INC.
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

INTRODUCTION

On October 24, 1995, SLM International, Inc. ("SLM") and six of its subsidiaries
filed for relief under Chapter 11 of the United States Bankruptcy Code in the
United States Bankruptcy Court for the District of Delaware. (SLM) and those
subsidiaries chose to seek court protection from creditors in order to conduct
their operations while preparing a reorganization plan. The Bankruptcy Court
entered an order authorizing the joint administration of the Debtors' Chapter 11
Cases. On September 12, 1996 the Debtors filed a Chapter 11 Plan of
Reorganization and on November 13, 1996, the Debtors filed a First Amended
Chapter 11 Plan of Reorganization, as amended from time to time, with the
Bankruptcy Court. On January 23, 1997, the Bankruptcy Court confirmed the
Reorganization Plan which became effective on April 11, 1997 and the Company
emerged from bankruptcy. Disruptions that occurred prior to and which may have
been or may be caused by the Filing will affect the Company's operating
performance for a given period and could continue to affect the Company's
results in 1997.

Financial comparisons herein are based on the combined results for the
Reorganized Company and the Predecessor Company for the six months and three
months ended June 28, 1997 as compared to results for the Predecessor Company
for the six months and three months ended June 29, 1996.

SELECTED FINANCIAL DATA

The combined consolidated financial information presented below should be read
in conjunction with the Results of Operations included in this Form 10-Q. FOR
THE PRESENTATION OF THIS STATEMENT, RESULTS FOR THE REORGANIZED COMPANY AND
PREDECESSOR COMPANY HAVE BEEN COMBINED FOR THE 1997 PERIODS.


                                           SLM INTERNATIONAL, INC.
                               COMBINED CONSOLIDATED STATEMENTS OF OPERATIONS
                                                 (Unaudited)
                                               (In thousands)
<TABLE>
<CAPTION>

                                                         For the Three Months Ended          For the Six Months Ended
                                                     ---------------------------------    -------------------------------
                                                         Combined                           Combined
                                                      June 28, 1997     June 29, 1996     June 28, 1997    June 28, 1996
                                                      -------------     -------------     -------------    -------------
<S>                                                      <C>               <C>               <C>              <C>    
Net sales                                                $31,901           $33,252           $53,616          $59,715
Cost of goods sold                                        19,320            21,371            32,918           37,656
                                                     --------------------------------------------------------------------
     Gross profit                                         12,581            11,881            20,698           22,059

Selling, general and administrative expenses               9,533            10,809            18,750           21,228

Restructuring charges                                                                          6,315
                                                     --------------------------------------------------------------------
     Operating income (loss)                               3,048             1,072            (4,367)             831

Debt related fees                                            311             1,912             1,243            3,626

Other expense (income), net                                  546               (18)              625               37

Interest expense                                           1,192             3,097             1,214            6,280
                                                     --------------------------------------------------------------------
     Income (loss) before income taxes and
     extraordinary gain on discharge of debt                 999            (3,919)           (7,449)          (9,112)

Income taxes                                                 192                                 192
                                                     --------------------------------------------------------------------
     Income (loss) before extraordinary gain on
     discharge of debt                                       807            (3,919)           (7,641)          (9,112)

Extraordinary gain on discharge of debt                   58,726                              58,726
                                                     --------------------------------------------------------------------
Net income (loss)                                        $59,533            (3,919)          $51,085          $(9,112)
                                                     ====================================================================

</TABLE>

                                       13


<PAGE>
                             SLM INTERNATIONAL, INC.
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS


RESULTS OF OPERATIONS

RESULTS OF OPERATIONS FOR THE SIX MONTHS AND THREE MONTHS ENDED JUNE 28, 1997

1997 COMPARED TO 1996

Net sales decreased 10.2% to $53.6 million in the six months ended June 28, 1997
as compared to $59.7 million in the six months ended June 29, 1996. The decline
in sales resulted primarily from the decreases in sales of inline skates and
apparel, offset, in part, by sales increases in ice skates. Compared to 1996,
sales in 1997 continued to be negatively affected by a weak retail environment
in the sports and leisure products industry and increased amounts of deeply
discounted merchandise offered by other manufacturers. Furthermore, the Company
reduced the amount of business conducted with certain specialty retailers and
mass merchandisers to whom previous sales were made at low margins and high
credit risk, and has reduced or eliminated certain incentives to customers. Net
sales decreased 4.1% to $31.9 million in the three months ended June 28, 1997 as
compared to $33.3 million in the three months ended June 29, 1996. The decline
in sales resulted primarily from the same factors which affected the six month
sales noted above.

Gross profit for the six months ended June 28, 1997 was $20.7 million compared
to $22.1 million for 1996, a decrease of 6.2% despite a sales decline of 10.2%
during the same period. Measured as a percentage of net sales, gross profit
margins increased to 38.6% in 1997 from 36.9% in 1996. These higher gross profit
margins are a result of favorable product mix and reduced sales of excess,
obsolete and slow moving inventories as compared to 1996. Gross profit for the
three months ended June 28, 1997 was $12.6 million compared to $11.9 million for
1996, an increase of 5.9% despite a sales decline of 4.1% during the same
period. Measured as a percentage of net sales, gross profit margins increased to
39.4% in 1997 from 35.7% in 1996. Gross profit was positively affected by
product mix and increased utilization of manufacturing capacity.

For the six months ended June 28, 1997, selling, general and administrative
expenses decreased 11.7% to $18.8 million compared to $21.2 million in the prior
year period. Measured as a percentage of net sales, these expenses were 35.0% in
1997 versus 35.6% in 1996. Expenses decreased due to generally lower operating
expenses resulting from the Company's continued efforts to aggressively reduce
costs, reduced variable selling costs, principally commissions, and lower
distribution and administrative expenses, including personnel costs. The
decreases were offset in part by increased sales taxes. For the three months
ended June 28, 1997, selling, general and administrative expenses decreased
11.8% to $9.5 million from $10.8 million in the same period in 1996 due to the
factors noted above. Measured as a percentage of net sales, these expenses
decreased to 29.9% from 32.5%.

During the six months ended June 28, 1997, the Company recorded restructuring
costs of $6.3 million relating to the downsizing of its manufacturing and
distribution operations. These costs consist primarily of lease cancellation
costs ($2.3 million) at its Peterborough, N.H. and Beauport, Quebec facilities,
impairment of fixed assets ($1.7 million), principally leasehold improvements at
its Peterborough, N.H. facility, and severance and employee costs associated
with the shutdown of three of the Company's manufacturing facilities, and are
included in Restructuring Charges in the Unaudited Consolidated Statements of
Operations.

Excluding the restructuring charges, operating income for the six months ended
June 28, 1997 was $1.9 million primarily as a result of increased gross profit
margins and lower selling, general and administrative expenses discussed above.
Including the restructuring charges, the operating loss for the six months ended
June 28, 1997 was $4.4 million. The operating income for the six months ended
June 29, 1996 was $0.8 million with no restructuring charges for that period.
Operating income for the three months ended June 28, 1997 was $3.0 million
compared to $1.1 million for the same period in 1996.

As a result of the Debtors' Chapter 11 Cases, the Company incurred significant
legal and professional fees totaling $1.2 million and $3.6 million during the
six months ended June 28, 1997 and June 29, 1996, respectively, and $0.3 million
and $1.9 million, during the three months then ended, respectively. These fees
include the cost of the Company's legal counsellors, financial advisors and
consultants, as well as those of certain of its creditors. These costs, which
represent approximately 16.3% and 39.8% of the Company's income (loss) before
extraordinary gain on discharge of debt for the six months ended June 28, 1997
and June 29, 1996, respectively, and 38.5% and 48.8% for the three months ended
June 28, 1997 and June 29, 1996, respectively, are included as Debt Related Fees
in the Unaudited Consolidated Statements of Operations for the periods then
ended.


                                       14


<PAGE>

                             SLM INTERNATIONAL, INC.
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Interest expense approximated $1.2 million for both the six months and three
months ended June 28, 1997 and $6.3 million and $3.1 million for the respective
periods ended June 29, 1996. During the reorganization proceedings, the Company
was generally not permitted to pay interest. Therefore, the Company will record
interest expense only to the extent paid or earned during the proceedings and to
the extent it is probable that the Bankruptcy Court will allow interest on
pre-Petition Date debt as a priority, secured or unsecured claim. On the
Effective Date, the Company entered into various debt agreements (see "Liquidity
and Capital Resources" below) resulting in 1997 interest expense.

The Company's loss before extraordinary gain on debt discharge for the six
months ended June 28, 1997 was $7.6 million compared to $9.1 million in the
comparable prior year period. For the three months ended June 28, 1997, income
was $0.8 million compared to a loss of $3.9 million for the three months ended
June 29, 1996.

On April 11, 1997, the Company emerged from bankruptcy and, as a result of its
Reorganization Plan and implementation of fresh-start reporting, approximately
$58.7 million of its liabilities were forgiven and are included in Extraordinary
Gain on Discharge of Debt in the Unaudited Consolidated Statements of
Operations.

The Company`s net income for the six months and three months ended June 28, 1997
was $51.1 million and $59.5 million, respectively, compared to net losses of
$9.1 million and $3.9 million in the comparable prior year periods.

LIQUIDITY AND CAPITAL RESOURCES

On October 24, 1995, SLM International, Inc. and six of its subsidiaries filed
for relief under Chapter 11 of the United States Bankruptcy Code in the United
States Bankruptcy Court for the District of Delaware. From the Filing to April
11, 1997, the Company and those subsidiaries operated their businesses in the
ordinary course as debtors-in-possession subject to the jurisdiction of the
Bankruptcy Court. The Bankruptcy Court entered an order authorizing the joint
administration of the Debtors' Chapter 11 Cases. On September 12, 1996 the
Debtors filed a Chapter 11 Plan of Reorganization and on November 13, 1996, the
Debtors filed a First Amended Chapter 11 Plan of Reorganization, as amended from
time to time (the "Reorganization Plan"), with the Bankruptcy Court. On January
23, 1997, the Bankruptcy Court confirmed the Reorganization Plan and the Plan
became effective on April 11, 1997.

The Filing enabled the Company to stabilize its liquidity position because the
cash requirements for the payment of accrued interest, accounts payable and
other liabilities, which arose prior to the Filing, were in most cases deferred
until the Reorganization Plan was approved by the Bankruptcy Court.

Management expects to finance the Company's short-term working capital and
capital expenditures requirements through cash generated by its operations and
through its new credit facilities. On the Effective Date of the Reorganization
Plan, the Company and two of its U.S. subsidiaries, Maska U.S., Inc. and #1
Apparel, Inc., entered into a Credit Agreement (the "U.S. Credit Agreement")
with the lenders referred to therein and The Chase Manhattan Bank, as Agent
("Chase"). Simultaneously, one of the Company's Canadian subsidiaries, Sport
Maska Inc., entered into a Credit Agreement (the "Canadian Credit Agreement"
and, together with the U.S. Credit Agreement, the "Credit Agreements") with The
Chase Manhattan Bank of Canada ("Chase Canada"). The maximum amount of loans and
letters of credit that may be outstanding under the Credit Agreements is $74.0
million, consisting of $35.0 million of revolving credit loans under the U.S.
Credit Agreement, $35.0 million of revolving credit loans under the Canadian
Credit Agreement and a $4.0 million term loan (which was permanently reduced by
$2.1 million in June 1997 with the proceeds from the sale of one of the
Company's subsidiaries) under the U.S. Credit Agreement. Borrowings under the
Credit Agreements are guaranteed by certain subsidiaries and are secured by
substantially all of the assets (including, without limitation, accounts
receivable, inventory and the stock of certain subsidiaries) of the Company.
Total amounts outstanding under the Credit Agreements were $9.1 million and
$11.7 million at April 14, 1997 and June 28, 1997, respectively.

Borrowings under the U.S. Credit Agreement bear interest at an alternate base
rate plus 1% per annum or at an interest rate based on LIBOR plus 2 3/4% per
annum. Borrowings under the Canadian Credit Agreement bear interest at Chase
Canada's prime rate or at an alternate base rate plus 1% per annum. In addition,
the Company is charged a quarterly commitment fee of up to 3/8 of 1% on the
unused portion of the revolving credit facilities under the Credit Agreements
and certain other fees.

The Credit Agreements include customary affirmative and negative covenants,
including those relating to capital expenditures, interest coverage and the
incurrence of additional indebtedness.


                                       15


<PAGE>

                             SLM INTERNATIONAL, INC.
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS


On April 11, 1997 the Company issued $29.5 million principal amount of 14%
Senior Secured Notes due April 1, 2004 (the "New Senior Notes"), pursuant to an
Indenture with The Bank of New York, as trustee. The New Senior Notes were
issued by the Company under the Reorganization Plan as partial satisfaction of
the Company's obligations to its former senior lenders under a Loan and Security
Agreement ("Bank Agreement") with a syndicate of banks led by Fleet Credit
Corporation. Under the Plan, the lenders under the Bank Agreement also received
(i) $44.2 million in cash; and (ii) 2,470,000 shares of New Common Stock,
representing approximately 38.0% of the outstanding New Common Stock. The
lenders sold such shares to W.S. Acquisition L.L.C. on the Effective Date.

Interest is payable on the New Senior Notes semi-annually at the rate of 14% per
annum, with such interest rate being permanently reduced by up to 4% if the
Company meets certain earnings tests. Further, of the initial 14% interest rate,
10% is payable in cash and 4% is payable by the issuance of additional New
Senior Notes. The New Senior Notes have a term of seven years with principal
payments beginning in the fifth year.

The New Senior Notes are guaranteed by certain subsidiaries and are
collateralized by substantially all of the assets (including, without
limitation, accounts receivable, inventory and the stock of certain
subsidiaries) of the Company, the two U.S. Subsidiaries referred to above and
the Company's other subsidiaries which are guarantors. The lien of the trustee
for the benefit of itself and the New Senior Noteholders is junior to the liens
of Chase and Chase Canada. The Indenture also includes customary affirmative and
negative covenants.

The Company's financing requirements for long-term growth, future capital
expenditures and debt service are expected to be met through cash generated by
its operations and through its new credit facilities. During the six months
ended June 28, 1997, the Company's operations provided $0.5 million of cash as
compared to a use of $1.7 million in 1996. Discontinued operations provided $3.9
million from operations in the six months ended June 28, 1996. The Company
incurred a loss of $7.6 million, exclusive of the extraordinary gain on
discharge of debt, compared to a loss of $9.1 million in 1996; however, the cash
impact was mitigated due to non-cash charges for receivables, inventory,
intangibles and restructuring charges.

Cash provided by investing activities during the six months ended June 28, 1997
of $1.6 million included $2.1 million of proceeds from the sale of one of the
Company's subsidiaries, offset, in part, by $0.3 million of purchases of fixed
assets. Cash used in investing activities included $1.3 million of purchases of
fixed assets during the six months ended June 29, 1996.

Net cash used in financing activities during the six months ended June 28, 1997
was approximately $35.8 million, resulting primarily from payments to creditors
on the Effective Date to satisfy claims ($36.1 million), costs incurred to
secure new debt facilities ($2.1 million), principal payments on debt ($2.3
million) including payment on the term loan under the U.S. Credit Agreement and
offset in part by borrowings under the Company's Credit Agreements ($4.7
million) for its short-term working capital requirements. Net cash flows used in
financing activities during the six months ended June 29, 1996 was approximately
$3.9 million, resulting primarily from the use of cash from discontinued
operations for principal payments on the Company's secured debt as allowed by
the Bankruptcy Court.

The Company follows the customary practice in the sporting goods industry of
offering extended payment terms to credit worthy customers on qualified orders.
The Company's working capital requirements generally peak in the third and
fourth quarters as it builds inventory and makes shipments under these extended
payment terms.


                                       16

<PAGE>

                             SLM INTERNATIONAL, INC.
                                     PART II
                                OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

         Reference is made to Note 10 of Notes to Unaudited Consolidated
         Financial Statements included in Part I of this report.

ITEM 5.  OTHER INFORMATION

         None.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.

         (a)   Exhibits:

               27.1   Financial Data Schedule

         (b) Reports filed on Form 8-K during the quarter ended June 28,
1997:

              (i) On April 17, 1997 the Company filed a Form 8-K with
                  respect to the Company's emergence from Bankruptcy and its
                  Plan of Reorganization becoming effective April 11, 1997.

             (ii) On May 9, 1997 the Company filed a Form 8-K and on May
                  29, 1997 filed a Form 8-K/A with respect to the change in
                  the Company's certifying accountants effective May 7, 1997.

                                       17


<PAGE>


                             SLM INTERNATIONAL, INC.


                                   SIGNATURES
                                   ----------

Pursuant to the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned thereunto duly
authorized.

                             SLM INTERNATIONAL, INC.
                                  (REGISTRANT)

                       By:  /s/ RUSSELL J. DAVID
                            ----------------------------------------------------
                            Name:   Russell J. David
                            Title:  Vice President, Finance
                                    (Principal Financial and Accounting Officer)

Date: August 18, 1997