UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, S.C. 20549


                                    FORM 10-Q

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

For the quarterly period ended December 30, 1995
                                  OR
(   ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
      SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Commission File Number:   1-9734

                             ONEITA INDUSTRIES, INC.
             (Exact name of registrant as specified in its charter)

            DELAWARE                                    57-0351045
(State or other jurisdiction of                     (I.R.S. Employer
incorporation or organization)                     Identification No.)

4130 FABER PLACE DRIVE, SUITE 200, CHARLESTON, SC          29405
(Address of principal executive offices)                 (Zip Code)

                                (803) 529 - 5225
              (Registrant's telephone number, including area code)

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

                     X      Yes                   No

     Indicate the number of shares  outstanding of each of the issuer's  classes
of common stock, as of the latest  practicable date.  6,878,506 shares of Common
Stock as of February 12, 1996.

<PAGE>

                                    FORM 10-Q

                                TABLE OF CONTENTS


PART I - FINANCIAL INFORMATION (Unaudited)

     Condensed Consolidated Balance Sheets at
     December 30, 1995 and September 30, 1995 ...............    1

     Condensed Consolidated Statements of Income for the
     Three Months Ended December 30, 1995 and
     December 31, 1994 ......................................    3

     Condensed Consolidated Statements of Cash Flows for
     the Three Months Ended December 30, 1995
     and December 31, 1994 ..................................    4

     Notes to Condensed Consolidated Financial Statements ...    5

     Management's Discussion and Analysis of Financial
     Condition and Results of Operations ....................    6


PART II - OTHER INFORMATION

     Item 1:   Legal Proceedings ............................    8

     Item 2:   Changes in Securities ........................    8

     Item 3:   Defaults upon Senior Securities ..............    8

     Item 4:   Submission of Matters to a Vote of Security
               Holders ......................................    8

     Item 5:   Other Information ............................    8

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

     Signature ..............................................    9


<PAGE>

               ONEITA INDUSTRIES, INC. AND SUBSIDIARIES

                CONDENSED CONSOLIDATED BALANCE SHEETS
                  (In thousands, except share data)

<TABLE>
<CAPTION>

                                                December 30,      September 30,
                                                   1995             1995
                                                (Unaudited)           (Note 1)
ASSETS

CURRENT ASSETS:
<S>                                               <C>                <C>

  Cash                                            $     45           $  2,749

  Refundable income tax                                ---              2,485

  Accounts receivable, less
    allowance for doubtful accounts                 28,267             29,438

  Inventories (Note 2)                              83,725             79,968

  Prepaid expenses and other
    current assets                                   5,221              4,765
                                                  --------           ---------

    Total current assets                           117,258            119,405

PROPERTY, PLANT AND EQUIPMENT,
  at cost, less accumulated
  depreciation and amortization                     43,596             43,760

NET ASSETS OF PLANTS HELD FOR SALE                   1,234                ---

OTHER ASSETS                                         1,646              1,852
                                                  --------           ---------

                                                  $163,734           $165,017
                                                  --------           ---------

<FN>

     See notes to condensed consolidated financial statements
</FN>
</TABLE>

<PAGE>


                    ONEITA INDUSTRIES, INC. AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEETS
                        (In thousands, except share data)
<TABLE>
<CAPTION>

                                             December 30,        September 30,
                                                1995                  1995
                                             (Unaudited)            (Note 1)

LIABILITIES AND SHAREHOLDERS' EQUITY

<S>                                         <C>                    <C>
CURRENT LIABILITIES:
  Notes payable                             $ 25,000               $ 23,000
  Current portion of long term debt
     and capital leases                        5,266                  4,729
  Accounts payable                            15,002                 11,699
  Accrued liabilities                          5,173                  7,073
                                            --------               --------

    Total current liabilities                 50,441                 46,501

LONG-TERM DEBT AND CAPITAL
   LEASE OBLIGATIONS                          35,453                 37,404

DEFERRED INCOME TAXES                          3,374                  3,272

SHAREHOLDERS' EQUITY:
  Preferred Stock, Series I, par
    value $1.00 per share, 2,000,000
    shares authorized, none issued              ---                    ---
  Common Stock, $.25 par value,
    15,000,000 shares authorized,
    6,960,821 shares issued and
    outstanding at December 30, 1995
    and September 30, 1995                     1,750                  1,750

  Other shareholders' equity                  72,716                 76,090
                                            --------               --------

                                            $163,734               $165,017
                                            --------               --------

<FN>
      See notes to condensed consolidated financial statements.
</FN>
</TABLE>

<PAGE>


                    ONEITA INDUSTRIES, INC. AND SUBSIDIARIES

                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                   (Unaudited)
                      (In thousands, except per share data)
<TABLE>
<CAPTION>

                                                   THREE MONTHS ENDED
                                          December 30,            December 31,
                                             1995                     1994


<S>                                         <C>                     <C>     
Net sales                                   $ 35,187                $ 40,106

Cost of sales                                 34,633                  32,242
                                            --------                --------

  Gross profit                                   554                   7,864

Selling, general and administrative
   expenses                                    4,693                   5,049

  Income(loss) from operations                (4,139)                  2,815

Interest expense, net of interest
  income of $64 in 1995 and $118
  in 1994                                     (1,300)                   (519)

  Income (loss) before provision for
    income taxes                              (5,439)                  2,296

Provision (benefit)for income taxes           (2,065)                    918
                                            ---------               ---------

  Net income (loss)                          $(3,374)                $ 1,378
                                            ---------               ---------

  Net income (loss) per share                  $(.49)                   $.20
     (Note 3)                                       ---------               ---------


<FN>

      See notes to condensed consolidated financial statements.
</FN>
</TABLE>

<PAGE>


                    ONEITA INDUSTRIES, INC. AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                 (In thousands)
<TABLE>
<CAPTION>
                                                       Three Months Ended
                                                  December 30,    December 31,
                                                     1995            1994

CASH FLOWS FROM OPERATING ACTIVITIES:

<S>                                                 <C>               <C>   
  Net income (loss)                                 $(3,374)          $1,378
  Adjustments to reconcile net income (loss)
    to net cash (used in) provided by
    operating activities:
  Depreciation and amortization                       1,588            1,359
  Provision for losses on accounts receivable           ---              150
  Increase (decrease) in deferred income taxes          388             (898)
  Change in assets and liabilities                       30           (1,225)
                                                   ---------         ---------
      Net cash (used in) provided by
       operating activities                          (1,368)             764

CASH FLOWS FROM INVESTING ACTIVITIES:

  Acquisition of property, plant and equipment       (2,516)          (2,215)
  Decrease (increase) in equipment
    lease deposits                                      642             (472)
  Proceeds from sale of property, plant
    and equipment                                         2              ---
                                                   ---------         ---------
      Net cash used in investing activities          (1,872)          (2,687)

CASH FLOWS FROM FINANCING ACTIVITIES:

  Short-term borrowings                               2,000            5,000
  Purchase of treasury shares                           ---             (198)
  Proceed from issuance of long-term debt               219              ---
  Increase in funds restricted
    for capital projects                                ---              (74)
  Payment of long-term debt and capital
    lease obligations                                (1,633)          (1,940)
  Other                                                 (50)             ---
                                                   ---------        ---------
      Net cash provided by
       financing activities                             536            2,788

NET (DECREASE) INCREASE IN CASH
  AND CASH EQUIVALENTS                               (2,704)             865

CASH AND CASH EQUIVALENTS AT
  BEGINNING OF PERIOD                                 2,749              967
                                                   ---------        ---------

CASH AT END OF PERIOD                               $    45            1,832
                                                   ---------        ---------

<FN>
           See notes to condensed consolidated financial statements.
</FN>
</TABLE>

<PAGE>


                    ONEITA INDUSTRIES, INC. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)


(1)       Basis of Presentation  -

     The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally  accepted  accounting  principles for
interim financial information and with the instructions to Form 10-Q and Article
10 of Regulation  S-X.  Accordingly,  they do not include all of the information
and footnotes required by generally accepted accounting  principles for complete
financial  statements.  The balance sheet at September 30, 1995 has been derived
from  the  audited  financial  statements  at  that  date.  In  the  opinion  of
management, all adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included.  Operating results for the
three-month period ended December 30, 1995 are not necessarily indicative of the
results that may be expected for the year ended  September 28, 1996. For further
information,  refer  to the  consolidated  financial  statements  and  footnotes
thereto  included in the Company's  annual report to  shareholders  for the year
ended September 30, 1995.

(2)       Inventories  -

     Inventories,  stated at the lower of cost (primarily last-in, first-out) or
market, are comprised of the following:

<TABLE>
<CAPTION>
                                                December 30,     September 30,
                                                   1995              1995

<S>                                                 <C>              <C>    
 Finished goods .................                   $61,829          $58,537

 Work in process     .................               16,866           17,495

 Raw materials and supplies ......                    5,030            3,936
                                                    -------          -------
                                                    $83,725          $79,968
</TABLE>

(3)   Net Income Per Share   -

     Earnings  per share are  calculated  using the weighted  average  number of
shares of common stock, and where dilutive, common stock equivalents outstanding
during each period.  Shares used in computing per share  results were  6,883,598
and  7,026,002  for the three  months  ended  December 30, 1995 and December 31,
1994, respectively.

<PAGE>

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

                            AND RESULTS OF OPERATIONS

Results of Operations

     Net sales for the three months ended  December 30, 1995 were $35.2  million
as  compared to $40.1  million in the  comparable  period of the prior  year,  a
decrease  of $4.9  million or 12.2%.  The  decrease  was due to a  reduction  of
customer orders for T-shirts as well as reduced prices resulting from activewear
promotional pricing.

     Net sales of  activewear  were $27.5  million  for the three  months  ended
December 30, 1995 as compared to $33.0 million in the  comparable  period of the
prior year, a decrease of $5.5 million or 16.7%. Net sales of T-shirts decreased
by $6.0 million and sweatshirts increased $0.5 million. The T-shirt decrease was
principally  due to lower unit sales of T-shirts of $2.7 million as well as $3.3
million  of reduced  revenues  attributable  to  promotional  pricing.  Sales of
sweatshirts increased due to increased unit sales.

     Net  sales of  infantswear  was $7.7  million  for the three  months  ended
December 30, 1995  compared to $7.1  million last year.  The increase was due to
sales of new products.

     Gross  profit for the  quarter  ended  December  30,  1995 of $0.6  million
decreased  $7.3  million  from the  comparable  period of the prior  year due to
promotional  pricing mentioned above as well as increased operating costs. Gross
profit, as a percentage of net sales, decreased to 1.6% compared to 19.6% in the
comparable  period of the prior year due to the price decreases  mentioned above
(10.7%), costs associated with reduced production schedules (4.7%) and increased
per unit operating costs (2.6%).

     Selling,  general and  administrative  expenses  for the three months ended
December 30, 1995 decreased $0.4 million from the comparable period of the prior
year due to lower sales related costs.

     Interest expense, net of interest income, for the first quarter of 1995 was
$1.3 million  compared to $0.5 million for the  corresponding  period last year.
The increase was due  primarily to higher  average  borrowings as well as higher
borrowing rates.


<PAGE>

Liquidity and Capital Resources

     Working  capital was $66.8  million at December 30, 1995  compared to $72.9
million at  September  30,  1995.  The  decrease  was due  primarily  to current
maturities of long-term debt and losses from operations.

     In order to improve  liquidity and strengthen the Company's  balance sheet,
the Board of Directors has approved a $75 million  refinancing of existing debt,
which  includes an $11.25  million  equity  infusion into the Company  through a
rights  offering  to  stockholders.  Existing  stockholders  will be  given  the
opportunity  to maintain  their  current  ownership  percentage by receiving the
right to  subscribe  to  shares  at $7.00 per share on the basis of one share of
Oneita  common  stock for each four  shares of stock  presently  held.  Avondale
Mills,  Inc., the Company's  largest raw material supplier and Robert M. Gintel,
the Company's  Chairman of the Board, have agreed to subscribe to all shares not
purchased  by existing  shareholders.  In no event will  Oneita  issue more than
1,607,143  shares of stock in connection  with the rights  offering,  which will
represent  18.9 percent of the then  8,485,649  shares  outstanding.  The rights
offered to shareholders will be non-transferable  and non-tradeable.  The $11.25
million  proceeds from the rights offering will be used to prepay certain of the
subordinated notes described below.

     In January  1996,  the Company  issued 10%  subordinated  notes to Avondale
Mills,  Inc. and Robert Gintel in the aggregate  principal amount of $15 million
maturing  February 26, 1999,  concurrently with the funding of the Company's new
bank credit  facility.  The notes are subordinate to the Company's bank debt and
certain other senior debt.  Subordinated  notes in the amount of $7.5 million to
Avondale  and $3.75  million to Gintel will be prepaid  from the proceeds of the
rights offering.  In the event the rights offering is not consummated by May 31,
1996, Avondale and Gintel will have the right to convert these $11.25 million of
notes into shares of Oneita Common Stock at $7.00 per share.  In connection with
the $3,750  subordinated note to Gintel which will remain  outstanding after the
rights offering, subject to stockholder approval, the Company will also issue to
Gintel  warrants to purchase  125,000 shares of Oneita Common Stock at $7.00 per
share.  The proceeds from issuance of the notes will be used for working capital
and capital expenditures.

     In January 1996, the Company entered into a new agreement with its banks to
borrow $60 million under a new revolving line of credit. The proceeds of the new
debt  were  used  to pay off an  existing  bank  credit  facility  and  existing
short-term  bank lines  totaling $50 million.  The additional $10 million of the
proceeds  will be used for working  capital and  capital  expenditures.  The new

<PAGE>

revolving  line of credit will be  collateralized  by  inventories  and accounts
receivable and will mature on January 26, 1999.

     The Company believes that its working capital and bank lines are sufficient
to meet its liquidity needs for at least the next twelve months.

Effects of Inflation

     The Company  believes that the  relatively  moderate  rates of inflation in
recent years have not had a significant impact on its sales and profitability.


              ONEITA INDUSTRIES, INC. AND SUBSIDIARIES

                    PART II - OTHER INFORMATION

Item 1 Legal Proceedings

       None

Item 2 Changes in Securities

       None

Item 3 Defaults upon Senior Securities

       None

Item 4 Submission of Matters to a Vote of Security Holders

       None

Item 5 Other Information

       None

Item 6 Exhibits and Reports on Form 8-K

 (a)   Exhibits
 10.24 10% Initial Subordinated Note dated January 26, 1996 in
       the principal amount of $3,750,000 issued to Robert M.
       Gintel
 10.25 10% Subordinated Note dated January 26, 1996 in the
       principal amount of $3,750,000 issued to Robert M. Gintel

<PAGE>

 10.26 10%  Subordinated  Note dated January 26, 1996 in the principal amount of
       $7,500,000 issued to Avondale Mills, Inc.
 10.27 Registration Rights Agreement dated January 26, 1996
       among the Company, Robert M. Gintel and Avondale Mills,
       Inc.
 10.28 $60,000,000 Revolving Credit Agreement dated January 26,
       1996 among the Company, SunTrust Bank, Atlanta, First
       Union National Bank of South Carolina and NatWest Bank
       N.A.
 10.29 $25,000,000 Promissory Note dated January 26, 1996 issued
       to SunTrust Bank, Atlanta
 10.30 $25,000,000 Promissory Note dated January 26, 1996 issued
       to First Union Bank of South Carolina
 10.31 $10,000,000 Promissory Note dated January 26, 1996 issued
       to NatWest bank N.A.
 10.32 Security Agreement dated January 26, 1996 among the
       Company, SunTrust Bank, Atlanta, First Union National
       Bank of South Carolina and NatWest Bank N.A. and the
       Prudential Insurance Company of America
 27        Financial Data Schedule
 (b)   No Reports on Form 8-K were filed during this quarterly period.

<PAGE>


                             SIGNATURE


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

                                    ONEITA INDUSTRIES, INC.

                                    By: /s/ Herbert J. Fleming
                                         Herbert J. Fleming
                                         President



                                    By: /s/ James L. Ford
                                        James L. Ford
                                        Executive Vice-President
                                        of Finance and
                                        Chief Financial Officer


Date:  February 12, 1996