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                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 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 1, 2001

( )   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
            EXCHANGE ACT OF 1934 (NO FEE REQUIRED)

                     For the transition period from to .

                         Commission File Number: 1-4404

                              THE STRIDE RITE CORPORATION
            (Exact name of registrant as specified in its charter)

                              Massachusetts 04-1399290
        (State or other jurisdiction) (I.R.S. Employer Identified No.)

              191 Spring Street, Lexington, Massachusetts 02421
             (Address of principal executive offices) (Zip Code)

      Registrant's telephone number, including area code: (617)824-6000

         Securities registered pursuant to Section 12(b) of the Act:

                                                         Name of each exchange
Title of each class                                      on which registered
--------------------------------                         ---------------------
Common stock, $.25 par value                             New York Stock Exchange

Preferred Stock Purchase Rights                          New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act:  None

     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required by Section 13 or 15(d) of the  Securities  Exchange  Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  report),  and  (2)  has  been  subject  to such  filing
requirements for the past 90 days.

          Yes (X)          No ( )
                                 -

     As of July 11, 2001,  41,800,779  shares of the registrant's  common stock,
$.25 par value,  and the  accompanying  Preferred  Stock  Purchase  Rights  were
outstanding.



<PAGE>



PART I - FINANCIAL INFORMATION

ITEM 1.  Financial Statements

                           THE STRIDE RITE CORPORATION
<TABLE>
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                             (Dollars in Thousands)

<CAPTION>
                                    June 1,                          June 2,
                                     2001          December 1         2000
                                  (Unaudited)         2000         (Unaudited)
                                 --------------   --------------  --------------

  Assets

  Current Assets:
<S>                                   <C>              <C>             <C>
     Cash and cash equivalents        $ 19,608         $ 62,976        $ 40,911

     Accounts and notes
       receivable, net                  89,567           54,375          82,976

     Inventories                        94,666          105,917          79,021

     Deferred income taxes              25,494           25,494          26,303

     Other assets                        3,184            6,365           4,525
                                       -------          -------         -------

     Total current assets              232,519          255,127         233,736

  Property and equipment, net           74,621           76,240          72,064

  Other assets                          21,600           21,106          20,793
                                       -------          -------         -------

     Total assets                     $328,740         $352,473        $326,593
                                      ========         ========        ========

</TABLE>
















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




                                        2


<PAGE>


PART I - FINANCIAL INFORMATION (Continued)

                         THE STRIDE RITE CORPORATION
<TABLE>
              CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
                             (Dollars in Thousands)

<CAPTION>
                                    June 1,                           June 2,
                                      2001         December 1          2000
                                  (Unaudited)         2000          (Unaudited)
                                 ---------------  --------------   --------------

Liabilities and Stockholders' Equity

  Current Liabilities:
     Short-term debt                       -         $ 24,000                -
<S>                                 <C>                <C>            <C>
     Accounts payable               $ 17,608           32,570         $ 16,964
     Income taxes payable             20,953           18,716           22,701
     Accrued expenses and other
       liabilities                    20,370           21,666           26,890
                                    --------         --------         --------
     Total current liabilities        58,931           96,952           66,555

  Deferred income taxes                5,929            5,929            5,219


  Stockholders' Equity:
     Preferred stock,
        $1 par value
       Shares authorized -
        1,000,000
       Shares issued - None                -                -                -

     Common stock, $.25 par
       value
       Shares authorized -
        135,000,000
       Shares issued -
        56,946,544                    14,237           14,237           14,237

     Capital in excess of par
       value                          19,875           20,276           20,721

    Retained earnings                385,521          371,821          368,920

     Less cost of 15,258,760
        shares of common stock
        held in treasury
        (15,355,693 on December
        1, 2000 and 13,874,260
        on June 2, 2000)            (155,753)        (156,742)        (149,059)
                                   ---------        ---------        ---------
     Total stockholders' equity      263,880          249,592          254,819
                                   ---------        ---------        ---------

     Total liabilities and
       stockholders' equity        $ 328,740        $ 352,473        $ 326,593
                                 ===========        =========        =========
</TABLE>

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



                                        3


<PAGE>


PART I - FINANCIAL INFORMATION (Continued)

                         THE STRIDE RITE CORPORATION
<TABLE>
           CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
             For the periods ended June 1, 2001 and June 2, 2000
                      (In Thousands Except Per Share Data)


<CAPTION>
                               Three Months Ended            Six Months Ended
                               ------------------            ----------------
                              June 1,       June 2,       June 1,      June 2,
                               2001          2000           2001        2000
                            ------------  ------------  -----------   ----------

<S>                         <C>           <C>           <C>            <C>
Net sales                   $ 153,660     $156,533      $304,753       $308,196

Cost of sales                  94,860       98,669       191,029        195,435

Selling and
  administrative expenses      43,072       40,855        86,279         84,119
                            ---------     --------      --------       --------

Operating income               15,728       17,009        27,445         28,642

Other income(expense):
  Investment income               408          783         1,968          1,644
  Interest expense               (486)        (681)       (1,075)        (1,154)
  Other, net                      (85)         (51)         (553)           (10)
                            ----------    --------      ---------      --------
                                 (163)          51           340            480
                            ----------    --------      --------       --------
Income before income
  taxes                        15,565       17,060        27,785         29,122

Provision for income
  taxes                         5,516        6,451         9,918         11,026
                            ---------     --------      --------       --------

Net income                  $  10,049     $ 10,609      $ 17,867       $ 18,096
                            =========     ========      ========       ========

Net income per common share:
  Diluted                   $     .24     $    .24      $    .43       $    .41
                            =========     ========      ========       ========
  Basic                     $     .24     $    .25      $    .43       $    .42
                            =========     ========      ========       ========
Dividends per common
share                       $     .05     $    .05      $    .10       $    .10
                            =========     ========      ========       ========

Average common shares
  used in per share
  computations:
  Diluted                      42,060       43,474        42,003         43,789
                            =========     ========      ========       ========
  Basic                        41,687       43,221        41,668         43,600
                            =========     ========      ========       ========
</TABLE>








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

                                        4


<PAGE>


PART I - FINANCIAL INFORMATION (Continued)

                         THE STRIDE RITE CORPORATION
<TABLE>
         CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
            For the six months ended June 1, 2001 and June 2, 2000
                            (Dollars in Thousands)

<CAPTION>
                                                       2001            2000
                                                 ---------------  -------------
Cash was provided from (used for):
Operations:
<S>                                                   <C>              <C>
   Net income                                         $ 17,867         $ 18,096
   Adjustments to reconcile to net cash provided
      from (used for) operations:
   Depreciation and amortization                         7,345            6,070
   Compensation expense related to executive
      stock plans                                          115              117
   Gain related to long-term investments                  (451)               -
   Loss on disposal of property and
      equipment                                             58              177
   Changes in:
      Accounts and notes receivable                    (35,192)         (35,498)
      Inventories                                       11,251           42,146
      Other current assets                               3,181              370
      Accounts payable, income taxes, accrued
       expenses and other current liabilities          (13,879)         (23,897)
                                                      ---------        --------
      Net cash provided from(used for)operations        (9,705)           7,581
                                                      ---------        --------
Investments:
   Additions to property and equipment                  (5,667)         (10,754)
   Distribution from long-term investments                 451                -
   Net sales of marketable securities                      316            1,091
   Increase in other assets                               (952)            (278)
                                                      ---------        --------
      Net cash used for investments                     (5,852)          (9,941)
                                                      ---------        --------
Financing:
   Short-term debt repayments                          (24,000)               -
   Proceeds from sale of stock under stock plans           352                -
   Cash dividends paid                                  (4,163)          (4,427)
   Repurchase of common stock                                -           (9,488)
                                                      --------         --------
      Net cash used for financing                      (27,811)         (13,915)
                                                      ---------        --------

Net decrease in cash and cash equivalents              (43,368)         (16,275)

Cash and cash equivalents at beginning of the
  period                                                62,976           57,186
                                                      --------         --------

Cash and cash equivalents at end of the period        $ 19,608         $ 40,911
                                                      ========         ========
</TABLE>



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








                                        5


<PAGE>


PART I - FINANCIAL INFORMATION (Continued)

                           THE STRIDE RITE CORPORATION

             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                                     NOTE 1

     The  financial  information  included  in this Form 10-Q of The Stride Rite
Corporation  (the "Company") for the periods ended June 1, 2001 and June 2, 2000
is unaudited  and subject to year-end  adjustments.  However,  such  information
includes all adjustments  (including all normal recurring adjustments) which, in
the opinion of management,  are considered  necessary for a fair presentation of
the  consolidated  results for those periods.  The results of operations for the
periods  ended June 1, 2001 and June 2, 2000 are not  necessarily  indicative of
the results of operations that may be expected for the complete fiscal year. The
year-end  condensed  balance  sheet  data was  derived  from  audited  financial
statements,  but does not include all disclosures required by generally accepted
accounting   principles.   The  Company  filed  audited  consolidated  financial
statements  for the year ended  December 1, 2000 on Form 10-K which included all
information and footnotes necessary for such presentation.

     The  Company's  preparation  of financial  statements  in  conformity  with
generally accepted  accounting  principles requires management to make estimates
and assumptions  that affect the reported  amounts of assets and liabilities and
disclosure of contingency  assets and  liabilities at the dates of the financial
statements and the reported amounts of revenues and expenses during the reported
periods.  The most significant  estimates included in these financial statements
include valuation allowances and reserves for accounts receivable, inventory and
income taxes. Actual results could differ from those estimates.


























                                         6


<PAGE>


      PART I - FINANCIAL INFORMATION (Continued)

                           THE STRIDE RITE CORPORATION

             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                                     NOTE 2

     Basic earnings per share excludes  dilution and is computed by dividing net
earnings  available to common  stockholders  by the weighted  average  number of
common shares  outstanding for the period.  Diluted  earnings per share reflects
the  potential  dilution  that could occur if options to issue common stock were
exercised.

     The following is a reconciliation of the number of shares used in the basic
and diluted earnings per share computations (shares in thousands):

<TABLE>
<CAPTION>
                                       Three Months Ended     Six Months Ended
                                       ------------------     ----------------
                                       June 1,   June 2,     June 1,    June 2,
                                         2001      2000        2001       2000
                                       --------- ---------   --------- ---------

Net income applicable to common
<S>                                    <C>       <C>         <C>        <C>
  shares                               $10,049   $10,609     $17,867    $18,096

Calculation of shares:
   Weighted average number of
     common shares outstanding
     (basic)                            41,687    43,221      41,668     43,600

  Common shares attributable to
    assumed exercise of dilutive
    stock options and stock
    purchase rights using the
    treasury stock method                  373       253         335        189
                                       -------   -------     -------    -------

Average common shares and common
  equivalents outstanding during
  the period (diluted)                  42,060    43,474      42,003     43,789
                                       =======   =======     =======    =======

Net income per common share (basic)    $   .24   $   .25     $   .43    $   .42
                                       =======   =======     =======    =======

Net income per common share
(diluted)                              $   .24   $   .24     $   .43    $   .41
                                       =======   =======     =======    =======
</TABLE>



     The following  options were not included in the  computation of diluted EPS
because the options' exercise price was greater than the average market price of
the common shares:

<TABLE>
<CAPTION>
                                     Second Quarter        First Six Months
                                  ---------------------- ----------------------
                                      2001       2000       2001        2000
                                  ----------  ---------- ---------  -----------
Options to purchase shares of
<S>                                    <C>        <C>        <C>         <C>
 common stock (in thousands)           1,998      2,870      2,068       3,221
</TABLE>






                                         7


<PAGE>



PART I - FINANCIAL INFORMATION (Continued)

                           THE STRIDE RITE CORPORATION

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

     This form 10-Q contains  forward-looking  statements  within the meaning of
Section 27A of the  Securities  Act of 1933 and  Section  21E of the  Securities
Exchange Act of 1934. We caution investors that any  forward-looking  statements
presented in this report and presented elsewhere by management from time to time
are based on  management's  beliefs  and  assumptions  made by, and  information
currently   available  to,  management.   When  used,  the  words  "anticipate",
"estimate",  "project",  "should", "expect" and similar expressions are intended
to identify  forward-looking  statements.  Such statements are subject to risks,
uncertainties  and  assumptions  and are not  guarantees of future  performance,
which may be affected by various trends and factors that are beyond our control.
Should  one or more of  these  risks or  uncertainties  materialize,  or  should
underlying assumptions prove incorrect,  actual results may vary materially from
those anticipated,  estimated or projected. Accordingly, past results and trends
should not be used by investors to anticipate future results or trends.  Some of
the key factors that may have a direct  bearing on our results are  presented in
the Company's  Form 10-K for the fiscal year ended  December 1, 2000,  which was
filed with the Securities and Exchange Commission.

Results of Operations

     The following  table  summarizes the Company's  performance  for the second
quarter  and first six months of fiscal  2001 as compared to the results for the
same periods in fiscal 2000:

<TABLE>
<CAPTION>
Increase (Decrease) Percent vs. 2000 results:
                                           Second Quarter      Six Months

<S>                                             <C>               <C>
Net sales                                       (1.8)%            (1.1)%
Gross profit                                     1.6%              0.9%
Selling and administrative expenses              5.4%              2.6%
Operating income                                (7.5)%            (4.2)%
Income before income taxes                      (8.8)%            (4.6)%
Net income                                      (5.3)%            (1.3)%
</TABLE>

<TABLE>
Operating Ratios as a Percent to Net Sales:
<CAPTION>
                                         Second Quarter       Six Months
                                       -----------------  -------------------
                                          2001    2000       2001     2000
                                       -------- --------  --------- ---------

<S>                                       <C>     <C>        <C>      <C>
Gross profit                              38.3%   37.0%      37.3%    36.6%
Selling and administrative expenses       28.0%   26.1%      28.3%    27.3%
Operating income                          10.2%   10.9%       9.0%     9.3%
Income before income taxes                10.1%   10.9%       9.1%     9.4%
Net income                                 6.5%    6.8%       5.9%     5.9%
</TABLE>





                                        8



PART I - FINANCIAL INFORMATION (Continued)

                           THE STRIDE RITE CORPORATION

ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
            RESULTS OF OPERATIONS (Continued)

Net Sales

     Net sales in the second  quarter of fiscal 2001  decreased  $2.9 million or
1.8% below the net sales level for the same period of fiscal 2000. In the second
quarter of 2001,  wholesale  brand  revenues  decreased  6%,  while retail sales
increased  16% from the same period in 2000.  Over the first six months of 2001,
consolidated  net sales decreased by $3.4 million,  1.1% below the sales for the
comparable  period of 2000.  Revenues related to the Company's  wholesale brands
declined 4% during the first half of 2001,  while  retail sales  increased  15%.
Unit shipments of current line  merchandise for the wholesale  brands during the
first half of 2001 were flat to the  comparable  period in 2000.  The  Company's
average  selling  price was lower in the first half of 2001,  decreasing 2% from
last year.  Sales of discontinued  products  decreased $2.9 million in the first
half of 2001 as compared to the same period in 2000.

     Sales of Stride Rite  Children's  Group increased 10% in the second quarter
of fiscal  2001,  the result of a 16%  increase in retail sales and a 2% gain in
sales to  independent  accounts,  as compared to the same period in fiscal 2000.
During the second  quarter of 2001,  sales at comparable,  company-owned  retail
stores  increased 3.3% from the same period of 2000. For the first six months of
2001,  sales of the Stride Rite  Children's  Group  increased  10% from the same
period in 2000, with the retail portion increasing 15% and the wholesale portion
increasing 6%. Sales at comparable,  company-owned  retail stores increased 2.4%
during the first half of 2001.  Sales of the Stride Rite brand in the first half
of 2001 were helped by the  introduction of the Munchkin(R)  product line in the
moderate retail  channel.  At the end of the second quarter of 2001, the Company
operated  203  stores,  up 5% from the 193 stores  open at the end of the second
quarter  in  2000.  The  Company  opened  10 new  stores  and  sold or  closed 8
underperforming locations in the first six months of 2001.

     In the  second  quarter  of fiscal  2001,  sales of the Keds brand were 11%
lower than the  comparable  period of fiscal  2000.  For the first six months of
2001, Keds' net sales decreased 7% compared to the same period of 2000, with the
sales of women's and children's  products  decreasing 6% and 10%,  respectively,
from the first half of 2000. Sales of discontinued products decreased by 34% for
the six  months  as  compared  to the same  period  of 2000,  as the  brand  had
undergone a major product transition last year. During the second quarter,  Keds
began shipping its new Ready to Wash(TM)  products.  This  introduction  will be
supported with television  advertising during the third quarter.  Keds will also
be opening a total of five retail stores in the second half of this year.  These
stores will  exhibit the Keds  lifestyle  concept and full  product  line to our
consumers.








                                        9


PART I - FINANCIAL INFORMATION (Continued)

                           THE STRIDE RITE CORPORATION

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
         RESULTS OF OPERATIONS (Continued)

     Sales of Tommy Hilfiger  footwear  products in the second quarter of fiscal
2001  increased 3% as compared to the same period in fiscal  2000.  The increase
was driven by a 19%  increase in women's  product and a full quarter of sales in
the  girl's  line,  which was  launched  late in May 2000.  These  gains  offset
decreases  in both the  men's  and  boy's  lines  which  decreased  33% and 39%,
respectively,  versus the prior year. For the first six months of 2001, sales of
Tommy Hilfiger footwear increased 1% as compared to the same period in 2000.

     Sales of the Sperry  Top-Sider  brand decreased 8% in the second quarter of
fiscal 2001,  bringing the first half sales decrease to 14% below the comparable
period of fiscal 2000. Sperry's second quarter sales were negatively impacted by
lower  sales  in men's  and  women's  canvas  as well as  men's  casual  leather
products.  International  revenues in the second  quarter of 2001 were below the
comparable  period of 2000 by $0.6  million or 10%.  For the first six months of
2001, International revenues declined less than 1% from the comparable period of
2000.

Gross Profit

     During the first six months of fiscal  2001,  gross profit  increased  $1.0
million or 0.9% above the same period in fiscal  2000.  This  increase  compares
favorably to the net sales  decrease of 1.1% as compared to the same period last
year. The consolidated  gross profit percent in the first half of 2001 increased
0.7  percentage  points,  finishing at 37.3% in 2001  compared to 36.6% in 2000.
Gross profit  performance also improved in the second quarter of 2001,  compared
to the same period in 2000,  38.3% in 2001  compared to 37.0% in the 2000 second
quarter.  The Company's gross profit  performance was beneficially  impacted for
the quarter and the six months by the  increased  significance  of retail sales,
which yields a higher gross profit percentage,  to overall  consolidated  sales.
Lower closeout sales and inventory obsolescence in the first half improved gross
profit by 0.4 percentage  points  compared to the prior year. The Company's LIFO
provision had little impact on gross profit comparisons for the first six months
of 2001, with LIFO  decreasing  gross profit by $1.2 million (0.4% of net sales)
in 2001 compared to a reduction of $1.1 million (0.4% of net sales) in 2000.

Operating Costs

     Selling  and  administrative  expenses  in the first  half of  fiscal  2001
increased  $2.2  million  or 2.6% from the  spending  level in the first half of
fiscal  2000.  Operating  costs  as a  percentage  of sales  in the  first  half
increased  1.0  percentage  point  from the same  period of 2000  (28.3% in 2001
compared to 27.3% in 2000).  The expense  level in the first half of fiscal 2001
was  unfavorably  impacted by executive  termination  charges which totaled $1.8
million. Higher retail store expenses,  primarily related to the start-up of new
stores, increased overall operating expenses by 4.1% during the first six months
of 2001.  Advertising expense represented 5.3% of net sales in the first half of
2001,  which was  slightly  below the spending  rate of 5.4% for the  comparable
period of 2000.

                                       10


<PAGE>


                  PART I - FINANCIAL INFORMATION (Continued)

                           THE STRIDE RITE CORPORATION

ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
            RESULTS OF OPERATIONS (Continued)


Other Income and Taxes

     Other  income  (expense)  increased  pre-tax  income by $0.3 million in the
first six months of fiscal 2001  compared to an increase of $0.5  million in the
similar  period of fiscal  2000.  Investment  income for the first six months of
2001 was $2.0  million,  up from the $1.6  million  for the first  half of 2000.
Interest  expense  in the first six  months of 2001  decreased  to $1.1  million
compared to $1.2 million in 2000.  The average  interest rate on borrowed  funds
was 6.4%  during  the first six  months,  lower  than the 6.7% rate  during  the
comparable  period last year.  Average  short-term  borrowings  in the first six
months of 2001 were $28.7  million,  7% below the  average  borrowings  of $31.0
million in the comparable period of 2000.

     The  provision  for income  taxes  decreased  $1.1 million in the first six
months of fiscal 2001 as compared to the  similar  period in fiscal  2000.  This
decrease was due to the lower effective income tax rate in the first half, 35.7%
versus  37.9%,  in the prior year.  The lower tax rate is based on the  year-end
projected tax rate and also reflects the reduction of certain tax exposures.

Net Income

     Net income for the first six months of fiscal 2001  decreased $0.2 million,
down  1.3% from the  income  earned in the same  period of fiscal  2000.  Higher
operating expenses,  primarily caused by the executive termination expenses were
substantially  offset by a lower  effective  tax rate and a higher  gross profit
percentage.  As a result, the Company's return on net sales of 5.9% in the first
six months of 2001 was equal to the 5.9% in the first half of 2000.

Liquidity and Capital Resources

     At June 1, 2001,  the Company's  balance sheet  reflects a current ratio of
3.9 to 1 with no long-term debt. The Company's cash and cash equivalents totaled
$19.6 million at the end of the latest quarter,  below the prior year's cash and
cash equivalents  total of $40.9 million.  When combined with  intermediate-term
fixed income  investments,  which are included in other assets,  total available
cash and investments amounted to $31.5 million at June 1, 2001 compared to $51.0
million in 2000. The Company uses its $75 million  revolving  credit facility to
fund seasonal  working  capital needs.  No borrowings  under this line of credit
were outstanding as of June 1, 2001, or June 2, 2000.





                                       11


<PAGE>


PART I - FINANCIAL INFORMATION (Continued)

                           THE STRIDE RITE CORPORATION

ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
            RESULTS OF OPERATIONS (Continued)

     During the first six months of fiscal  2001,  the Company used $9.7 million
of cash for  operations.  This negative cash flow amount was well below the $7.6
million of cash provided from operations  during the same period in fiscal 2000.
At June 1,  2001,  accounts  receivable  and  inventory  levels  totaled  $184.2
million,  an increase  of $22.2  million or 14% above the $162.0  million  asset
amount at the end of the second quarter of 2000.  Accounts receivable at the end
of the second quarter of 2001 increased $6.6 million or 8% compared to the prior
year.  Much of this increase in accounts  receivable was caused by the timing of
sales  which  occurred  later in the second  quarter as  compared to fiscal year
2000.  Inventories were also higher at the end of the second quarter of 2001, up
$15.6  million  or 20% from the 2000  level.  This  increase  in  inventory  was
principally in the Stride Rite Children's Group and is expected to service their
second half growth.  Also,  some leather product  purchases were  accelerated to
alleviate any impact on supply that may result from shortages  caused by mad cow
and hoof and mouth diseases.

     Additions to property and equipment  totaled $5.7 million in the first half
of fiscal 2001 below the $10.8  million for the same period in fiscal 2000.  The
smaller  capital  expenditures  were the result of lower spending on information
technology  in fiscal 2001 and building  costs  related to the  expansion of the
Company's  Huntington,  Indiana distribution facility which were spent in fiscal
2000.  During the first half of 2001,  the Company did not repurchase any shares
of its common  stock.  At June 1,  2001,  the  Company  has 2.1  million  shares
remaining on the repurchase  authorization approved by the Board of Directors in
December 1999.



























                                       12


<PAGE>


 PART II - OTHER INFORMATION

ITEM 4.     SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     The Annual  Meeting  of the  Company's  shareholders  was held on April 12,
2001.  The two directors  nominated by  management  were elected by the vote set
forth below:

<TABLE>
                                                 Votes
                                        ------------------------
<CAPTION>
        Name of  Director               For          Withheld
        -----------------               ---          --------
<S>                                     <C>          <C>
        Christine M. Cournoyer          34,330,159   3,013,275
        Donald R. Gant                  34,304,632   3,038,802
</TABLE>

     The Company's  other  directors,  whose term of office  continues after the
2001 stockholders' meeting, are as follows:

                              David M. Chamberlain
                              Peter L. Harris
                              Frank R. Mori
                              Bruce Van Saun
                              Myles J. Slosberg
                              Diane M. Sullivan

     The  Company's  shareholders  also  ratified  the  Company's  selection  of
PricewaterhouseCoopers  LLP. as auditors of the Company for the 2001 fiscal year
by the vote set forth below:

<TABLE>
                         Votes
         ------------------------------------------------
<CAPTION>
               For        Against          Abstentions
               ---        -------          -----------
<S>        <C>            <C>                 <C>
           37,120,088     147,219             76,127
</TABLE>

     The shareholders voted in favor of a proposal requesting that the directors
consider and act upon to approve The Stride Rite  Corporation  2001 Stock Option
and Incentive Plan, by the vote set forth below:

<TABLE>
                     Votes
         ---------------------------------------------------------------
<CAPTION>
                                                             Broker
               For                  Against    Abstentions   Non-Vote
               ---                  -------    -----------   --------
<S>        <C>                   <C>             <C>         <C>
           18,685,271            10,517,320      211,416     7,929,427
</TABLE>



















                                       13


<PAGE>


ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K


         (a)    Exhibits.  The following exhibits are contained in this
                --------
                report:

                None

         (b)    Reports on Form 8-K

                There were no reports filed on Form 8-K during the most recent
                quarterly period.













































                                       14


<PAGE>


                            THE STRIDE RITE CORPORATION


                                     SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned duly authorized.
                                    THE STRIDE RITE CORPORATION
                                    ---------------------------
                                      (Registrant)



Date:  July 12, 2001                By:  /S/ Frank A. Caruso
                                    --------------------------
                                      Frank A. Caruso
                                      Chief Financial Officer









































                                       15