SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended September 30, 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 0-1282-3
Swiss Army Brands, Inc.
(Exact name of registrant as specified in its charter)
Delaware 13-2797726
(State of incorporation) (I.R.S. Employer Identification No.)
One Research Drive, Shelton, Connecticut 06484
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (203) 929-6391
NOT APPLICABLE
(Former name, former address and former fiscal year, if changed since
last report.)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports) and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
The number of shares of Issuer's Common Stock, $.10 par value, outstanding on
November 10, 1997, was 8,209,610 shares.
<PAGE>
SWISS ARMY BRANDS, INC.
AND SUBSIDIARIES
INDEX
<TABLE>
<CAPTION>
PART I: FINANCIAL INFORMATION Page No.
<S> <C> <C>
Item 1. FINANCIAL STATEMENTS
Consolidated Balance Sheets as of
September 30, 1997 and December 31, 1996. 3 - 4
Consolidated Statements of Operations for the
Three and Nine Months Ended September 30, 1997
and 1996. 5
Consolidated Statements of Stockholders= Equity
for the Nine Months Ended September 30, 1997
and 1996. 6
Consolidated Statements of Cash Flows for the
Nine Months Ended September 30, 1997 and 1996. 7
Notes to Consolidated Financial Statements 8 - 9
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS 10 - 12
Part II: OTHER INFORMATION
Item 6. EXHIBITS AND REPORTS ON FORM 8-K 13
Signatures 13
The Exhibit Index appears on page 13.
</TABLE>
2
<PAGE>
SWISS ARMY BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)
Assets
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
(unaudited)
<S> <C> <C>
Current assets:
Cash and cash equivalents ................. $ 861 $2,067
Accounts receivable, less
allowance for doubtful accounts
of $994 and $1,032 respectively........... 22,944 32,992
Inventories................................ 35,779 29,657
Deferred income taxes...................... 3,295 3,295
Prepaid and other.......................... 4,712 2,922
--------- -----------
Total current assets....................... 67,591 70,933
Deferred income taxes......................... 1,597 1,597
Property, plant and equipment, net............ 3,791 3,969
Investment in preferred units, at cost........ 8,850 9,003
Investment in unconsolidated affiliate........ 150 150
Foreign distribution rights, net of
accumulated amortization of $3,022
and $2,518 respectively.................... 3,720 4,226
Other assets, net of accumulated
amortization of $1,068 and
$496 respectively.......................... 9,399 8,765
--------- ----------
Total Assets $95,098 $98,643
========= ==========
</TABLE>
3
<PAGE>
SWISS ARMY BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)
Liabilities and Stockholders' Equity
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
(unaudited)
<S> <C> <C>
Current liabilities:
Accounts payable....................... $ 8,548 $10,952
Accrued liabilities.................... 7,880 7,835
Line of credit......................... 1,630 --
--------- ---------
Total current liabilities.............. 18,058 18,787
Commitments and contingencies
Stockholders' equity:
Preferred stock, par value $.10 per share:
shares authorized 2,000,000; no shares issued -- --
Common stock, par value $.10 per
share: shares authorized -
18,000,000; shares issued -
8,823,718 and 8,822,968, respectively..... 882 882
Additional paid-in capital................ 46,186 46,182
Foreign currency translation adjustment... (144) (113)
Retained earnings......................... 35,229 38,018
-------- --------
82,153 84,969
Less-cost of common stock in
treasury; 614,108 shares.................. (5,113) (5,113)
-------- --------
Total stockholders' equity................ 77,040 79,856
-------- --------
Total Liabilities and Stockholders' Equity $95,098 $98,643
========= =========
</TABLE>
4
<PAGE>
SWISS ARMY BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
<S> <C> <C> <C> <C>
Net sales..................... $27,866 $34,616 $80,943 $89,372
Cost of sales................. 17,270 22,620 51,019 63,394
--------- --------- --------- ---------
Gross profit.................. 10,596 11,996 29,924 25,978
Selling, general and administrative
expenses...................... 12,160 10,828 35,095 29,537
Special charges............... -- -- -- 2,073
--------- --------- --------- ---------
Operating income (loss)....... (1,564) 1,168 (5,171) (5,632)
Interest income (expense), net 24 (56) 136 3
Gain (loss) on sale (write-down) of
investments................... 285 -- 395 (789)
Other income (expense), net... 5 28 4 145
--------- ---------- --------- --------
Total interest and other
income,net.................... 314 (28) 535 (641)
--------- ---------- --------- --------
Income (loss) before income
taxes......................... (1,250) 1,140 (4,636) (6,273)
Income tax provision (benefit) (475) 498 (1,847) (2,613)
--------- ---------- --------- ---------
Net income (loss)............. ($775) $642 ($2,789) ($3,660)
========= ========== ========= =========
Net income (loss) per share... ($0.09) $0.08 ($0.34) ($0.45)
========= ========== ========= =========
Weighted average number of
shares outstanding......... 8,209,610 8,334,166 8,209,431 8,199,194
========== =========== ========== ==========
</TABLE>
5
<PAGE>
SWISS ARMY BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(in thousands, except for share data)
<TABLE>
<CAPTION>
Foreign Unrealized
Common Stock Additional Currency Gain on
Par Value $.10 Paid-In Translation Marketable Retained Treasury
Shares Amount Capital Adjustment Securities Earnings Stock
<S> <C> <C> <C> <C> <C> <C> <C>
BALANCE
December 31, 1995 8,800,718 $880 $45,898 ($9) $ -- $43,284 ($5,113)
Net loss for
nine months ended
September 30, 1996
(unaudited) -- -- -- -- -- (3,660) --
Stock options
exercised 19,750 2 239 -- -- -- --
Unrealized gain on
marketable securities -- -- -- -- 169 -- --
Foreign currency
translation adjustment -- -- -- 7 -- -- --
---------- --------- ---------- --------- --------- ---------- --------
BALANCE, September 30,
1996 (unaudited) 8,820,468 $882 $46,137 ($2) $169 $39,624 ($5,113)
========== ========= ========== ========= ========= ========== ========
BALANCE
December 31, 1996 8,822,968 $882 $46,182 ($113) $ -- $38,018 ($5,113)
Net loss for
nine months ended
September 30, 1997
(unaudited) -- -- -- -- -- (2,789) --
Stock options
exercised 750 -- 4 -- -- -- --
Foreign currency
translation adjustment -- -- -- (31) -- -- --
----------- -------- --------- --------- --------- ----------- ---------
BALANCE, September 30,
1997 (unaudited) 8,823,718 $882 $46,186 ($144) $ -- $35,229 ($5,113)
=========== ======== ========= ========= ========= =========== =========
</TABLE>
6
<PAGE>
SWISS ARMY BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
<TABLE>
<CAPTION>
Nine months ended
September 30,
1997 1996
<S> <C> <C>
Cash flows from operating activities:
Net loss
Adjustments to reconcile net loss to cash ($2,789) ($3,660)
provided from (used for) operating activities:
Depreciation and amortization 2,068 4,054
(Gain) loss on (sale) write-down of investments (285) 789
Gain on sale of fixed assets -- (24)
-------- -------
(1,006) 1,159
Changes in other current assets and liabilities:
Accounts receivable 10,041 4,318
Inventories (6,118) (2,037)
Prepaid and other (1,791) (3,178)
Accounts payable (2,389) 4,527
Accrued liabilities 67 (2,676)
--------- ---------
Net cash provided from (used for) operating activities (1,196) 6,187
Cash flows from investing activities:
Capital expenditures (881) (1,221)
Proceeds from sales of property, plant and equipment - 43
Additions to other assets (1,149) (2,498)
Investment in preferred units - (2,000)
Proceeds from sale of investment 438 60
--------- ---------
Net cash (used for) investing activities (1,592) (5,616)
--------- ---------
Cash flows from financing activities:
Net borowings under line of credit agreement 1,630 675
Proceeds from exercise of stock options 4 241
--------- ---------
Net cash provided from financing activities 1,634 916
--------- ---------
Effect of exchange rate changes on cash (52) 8
Net increase (decrease) in cash and cash equivalents (1,206) 1,495
Cash and cash equivalents, beginning of period 2,667 609
--------- ---------
Cash and cash equivalents, end of period 861 2,104
========= =========
Cash paid during the period:
Interest $15 $104
========= =========
Income taxes $ 453 $1,692
========= =========
</TABLE>
7
<PAGE>
SWISS ARMY BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1997 and 1996
(unaudited)
CONSOLIDATED FINANCIAL STATEMENTS
- ---------------------------------
The consolidated financial statements included in this Form 10-Q have been
prepared by Swiss Army Brands, Inc. ("Swiss Army", the "Company") without audit.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted pursuant to the rules and regulations of the
Securities and Exchange Commission. It is suggested that these consolidated
financial statements be read in conjunction with the financial statements and
notes thereto included in the Company's report on Form 10-K for the year ended
December 31, 1996. In the opinion of management of the Company, the interim
financial statements included herein reflect all adjustments, consisting only of
normal recurring adjustments ( except for the special charges discussed below) ,
necessary for a fair presentation of the financial position, results of
operations and cash flows for the interim periods presented. The 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 at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates. Due to the seasonal nature of
the Company's business, the results of operations for the interim periods
presented are not necessarily indicative of the operating results for the full
year.
INVENTORIES
- -----------
Domestic inventories are stated at the lower of cost (determined by the
last-in, first-out (LIFO) method) or market. Foreign inventories are valued at
the lower of cost or market determined by the FIFO method. Inventories
principally consist of finished goods.
SPECIAL CHARGES
- ---------------
In the second quarter of 1996, the Company recorded special charges of
approximately $7,394,000 related to an extensive analysis of the Company's
operations and non-strategic assets. The special charges consisted of :
Write-off of inventory ....................... $4,521,000 (a)
Selling, general and administrative charges... 2,073,000 (b)
Write-down of investments .................... 800,000 (c)
----------
$7,394,000
==========
Represents the write-off of discontinued inventory, including certain cutlery
products sold by Cuisine de France Limited ("CDF"). Substantially all of the
assets of CDF were sold by the Company in January 1997.
Consists of an $870,000 write-off of goodwill related to CDF, a $850,000
write-off for obsolete displays and a $353,000 write-off of other assets.
Consists of a $800,000 write-off of the Company's investment in a privately held
affiliated start-up entity. In the second quarter of 1997, the Company recovered
$110,000 related to this investment which is included in the gain (loss) on sale
(write-down) of investments.
8
<PAGE>
INVESTMENTS
- -----------
During the third quarter of 1997, the Company received a $438,000
distribution from its investment in Victory Ventures LLC, which resulted in a
gain of $285,000. This amount has been included in gain (loss) on sale
(write-down) of investments.
INCOME TAXES
- ------------
Income taxes are provided at the projected annual effective tax rate. The
income tax provisions (benefits) for the interim 1997 and 1996 periods exceed
the federal statutory rate of 34% due primarily to state income taxes (net of
federal benefit).
EARNINGS PER SHARE
- ------------------
For the periods ended September 30, 1997 and 1996, the weighted average
number of shares of common stock outstanding do not include the dilutive effect
of stock options as they would have an anti-dilutive effect.
In February 1997, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 128 (ASFAS No. 128" or the AStatement@),
Earnings Per Share (AEPS@). SFAS No. 128 establishes standards for computing and
presenting EPS and is effective for both interim and annual periods ending after
December 15, 1997. The Statement does not permit early application of its
provisions. The Statement replaces the presentation of primary EPS with a
presentation of basic EPS, as defined. It also requires dual presentation of
basic and diluted EPS on the face of the Statement of Operations for entities
with a complex capital structure. The Company does not anticipate the effect on
EPS to be material.
9
<PAGE>
SWISS ARMY BRANDS, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
(unaudited)
FORWARD LOOKING STATEMENTS
--------------------------
The following discussion contains, in addition, to historical information,
forward looking statements. The forward looking statements were prepared on the
basis of certain assumptions which relate, among other things, to the demand for
and cost of purchasing and marketing the Company's products; the prices at which
such products may be sold; new product development; seasonal selling trends; the
Swiss franc- U.S. dollar exchange rates; the extent to which the Company is able
to successfully hedge against foreign currency fluctuations; and the Company's
anticipated credit needs and ability to obtain such credit. Even if the
assumptions upon which the projections are based prove accurate and appropriate,
the actual results of the Company's operations in the future may vary widely
from financial projections due to increased competition, changes in consumer
tastes and other factors not yet known or anticipated. Accordingly, the actual
results of the Company's operations in the future may vary widely from the
forward-looking statements included herein.
RESULTS OF OPERATIONS
---------------------
Comparison for the Three Months Ended September 30, 1997 and 1996
- ------------------------------------------------------------------
Sales for the three months ended September 30, 1997 were $27.9 million
compared with $34.6 million for the same period in 1996, representing a decrease
of $6.7 million or 19.5%. Approximately $1.1 million of the $6.7 million sales
decrease was due to the sale of substantially all of the assets of Cuisine de
France Limited ("CDF") in January 1997, with the remaining sales decrease due
primarily to a decrease in sales of Victorinox Original SwissArmy Knives,
watches and to a lesser extent cutlery.
Gross profit of $10.6 million for the three months ended September 30, 1997
decreased $1.4 million or 11.7% from 1996. This decrease is primarily due a
reduction in sales offset in part by a higher gross profit margin percentage.
The gross profit margin percentage for the third quarter of 1997 of 38.0% was
higher than the gross profit margin percentage of 34.7%, reported for the same
period in 1996 primarily due to the increase in the value of the U.S. dollar
versus the Swiss franc. The Company's gross profit margin is a function of both
product mix and Swiss franc exchange rates. Since the Company imports virtually
all of its products from Switzerland, its costs are affected by both the spot
rate of exchange and by its foreign currency-hedging program. The Company enters
into foreign currency contracts and options to hedge the exposure associated
with foreign currency fluctuations. Based upon current Swiss franc requirements
the Company believes it is hedged through the remainder of 1997. However, such
hedging activity cannot eliminate the long-term adverse impact on the Company's
competitive position and results of operations that would result from a
sustained decrease in the value of the dollar versus the Swiss franc. These
hedging transactions, which are meant to reduce foreign currency risk, also
reduce the beneficial effects to the Company if the dollar increases relative to
the Swiss franc. The Company plans to continue to engage in hedging
transactions; however, it is uncertain as to what extent to which such hedging
transactions will reduce the effect of adverse currency fluctuations.
Selling, general and administrative expenses for the three months ended
September 30, 1997 of $12.2 million were $1.3 million or 12.3% higher than the
amount for the comparable period in 1996. Approximately $0.8 million of the $1.3
million increase is due to expenses related to the introduction of a new brand
and a brand extension; Swiss Watches marketed under the name Allenby and Swiss
Army Brand Sunglasses, with the remaining increase due primarily to increased
expenditures for advertising and marketing related activities, offset in part by
expenses related to CDF.
As a percentage of net sales, total selling general and administrative
expenses increased from 31.2% in 1996 to 43.6% in 1997.
Interest income (expense), net was income of $24,000 for the three months
ended September 30, 1997 versus expense of $56,000 for the comparable period in
1996 primarily due to increased invested cash balances during 1997 as compared
to 1996.
10
<PAGE>
Gain (loss) on sale (write-down) of investments was a gain of $285,000 in
1997, due to a gain on a distribution from the Company's investment in Victory
Ventures LLC.
As a result of these changes, income (loss) before income taxes for the
three months ended September 30, 1997 was a loss of $1,250,000 in 1997 versus
income of $1,140,000 for the same period in 1996, a decrease of $2,390,000.
Income tax expense (benefit) was provided at an effective rate of 38.0% and
43.7% in 1997 and 1996, respectively.
As a result, net income (loss) for the three months ended September 30,
1997 was a loss of $775,000 ($0.09 per share) versus income of $642,000 ($0.08
per share) for the same period in 1996, a decrease of $1,417,000.
Comparison for the Nine Months Ended September 30, 1997 and 1996
- -----------------------------------------------------------------
Sales for the nine months ended September 30, 1997 were $80.9 million
compared with $89.4 million for the same period in 1996, representing a decrease
of $8.4 million or 9.4%. Approximately $2.6 million of the $8.4 million sales
decrease was due to the sale of substantially all of the assets of CDF in
January 1997, with the remaining sales decrease due primarily to a decrease in
sales of Victorinox Original Swiss Army Knives, watches and cutlery, offset in
part by sales of Swiss Army Brand Sunglasses.
Gross profit of $29.9 million for the nine months ended September 30, 1997
increased $3.9 million or 15.2% from 1996. This increase is primarily due to the
$4.5 million inventory write-off in 1996, increased gross profit margin
percentage offset in part by lower sales. The gross profit margin percentage for
the nine months ended September 30, 1997 of 37.0% was higher than the gross
profit margin percentage of 34.1%, excluding the $4.5 million inventory
write-off, reported for the same period in 1996. The gross profit percentage
increase is primarily due to the increase in the value of the U.S. dollar versus
the Swiss franc. The Company's gross profit margin is a function of both product
mix and Swiss franc exchange rates. Since the Company imports virtually all of
its products from Switzerland, its costs are affected by both the spot rate of
exchange and by its foreign currency-hedging program. The Company enters into
foreign currency contracts and options to hedge the exposure associated with
foreign currency fluctuations. Based upon current Swiss franc requirements the
Company believes it is hedged through the remainder of 1997. However, such
hedging activity cannot eliminate the long-term adverse impact on the Company's
competitive position and results of operations that would result from a
sustained decrease in the value of the dollar versus the Swiss franc. These
hedging transactions, which are meant to reduce foreign currency risk, also
reduce the beneficial effects to the Company if the dollar increases relative to
the Swiss franc. The Company plans to continue to engage in hedging
transactions; however, it is uncertain as to what extent to which such hedging
transactions will reduce the effect of adverse currency fluctuations.
Selling, general and administrative expenses for the nine months ended
September 30, 1997 of $35.1 million were $5.6 million or 18.8% higher than the
amount for the comparable period in 1996. Approximately $3.9 million of the $5.6
million increase is due to expenses related to the introduction of a new brand
and a brand extension; Swiss Watches marketed under the name Allenby and Swiss
Army Brand Sunglasses, with the remaining increase due primarily to increased
expenditures for advertising and marketing related activities, $0.3 million in
costs related to continuing restructuring, offset in part by expenses related to
CDF.
The Company recorded special selling, general and administrative charges of
$2.1 in 1996 related to the write-off of obsolete displays, goodwill and other
assets. The goodwill write-off related to CDF, and was written-off due to the
lack of recoverability of the asset. Substantially of the assets of CDF were
sold by the Company in 1997 with no significant gain or loss. There were no
special charges recorded in 1997.
As a percentage of net sales, total selling general and administrative
expenses increased from 35.4% in 1996 to 43.4% in 1997.
11
<PAGE>
Interest income (expense), net was income of $136,000 for the nine months
ended September 30, 1997 versus income of $3,000 for the comparable period in
1996 primarily due to increased invested cash balances during 1997 as compared
to 1996.
Gain (loss) on sale ( write-down) of investments was a gain of $395,000 in
1997, verse a loss of $789,000 in 1996. The gain in 1997 comprised of a $285,000
gain from a distribution of the Company's investment in Victory Ventures LLC and
$110,000 gain related to a privately held start-up entity. The Company had
previously written off $800,000 related to this privately held startup entity
investment in 1996.
Other income (expense), net of $4,000 for the nine months ended September
30, 1997 versus $145,000 in the same period for the prior year, is due to the
favorable settlement of a legal matter in 1996.
As a result of these changes, loss before income taxes for the nine months
ended September 30, 1997 was $4,636,000 versus $6,273,000 for the same period in
1996, a decrease of $1,637,000.
Income tax expense (benefit) was provided at an effective rate of 39.8% and
41.7% in 1997 and 1996, respectively.
As a result, net loss for the nine months ended September 30, 1997 was
$2,789,000 ($0.34 per share) versus $3,660,000 ($0.45 per share) for the same
period in 1996, a decrease of $871,000.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
As of September 30, 1997, the Company had working capital of $49.5 million
compared with $52.1 million as of December 31, 1996, a decrease of $2.6 million.
Significant uses of working capital included a $1.1 million increase in other
assets and capital expenditures of $0.9 million. The Company currently has no
material commitments for capital expenditures.
Cash used for operating activities was approximately $1.2 million in the
nine months ended September 30, 1997 compared with cash provided from operating
activities of $6.2 million in the comparable period in 1996. The change resulted
primarily from an increase in inventory in 1997 verse a decrease in 1996 and a
decrease in accounts payable in 1997 verse an increase in 1996.
The Company meets its short-term liquidity needs with cash generated from
operations, and, when necessary, bank borrowings under its revolving credit
agreement. As of September 30, 1997, the Company had a $5.0 million line of
credit, of which $1.6 million was outstanding with the remaining line of $3.4
million available for borrowing. The Company had a separate $15.0 million
revolving credit agreement, which expired in January 1997. The Company is
currently reviewing its options to establish a new revolving credit agreement.
The Company's short-term liquidity is affected by seasonal changes in inventory
levels, payment terms and seasonality of sales. The Company believes its current
liquidity levels and financial resources will be sufficient to meet its
operating needs in the near-term.
12
<PAGE>
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
A.) Exhibits
(2) Not Applicable
(3) Not Applicable
(4) Not Applicable
(10) Not Applicable
(11) Statement regarding computation of per share earnings is not required
because the relevant computation can be clearly determined from the
material contained in the Financial Statements included herein.
(15) Not Applicable
(18) Not Applicable
(19) Not Applicable
(22) Not Applicable
(23) Not Applicable
(24) Not Applicable
(27) Financial Data Schedule
(99) Not Applicable
B.) There were no reports or exhibits on Form 8-K filed for the three months
ended September 30, 1997.
Pursuant to the requirements 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.
SWISS ARMY BRANDS, INC.
Registrant
Date: November 11, 1997
By /s/ Thomas M. Lupinski
Name: Thomas M. Lupinski
Title: Senior Vice President &
Chief Financial Officer, Secretary
and Treasurer
13
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000731947
<NAME> Swiss Army Brands, Inc.
<MULTIPLIER> 1,000
<CURRENCY> US Dollars
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JUL-01-1997
<PERIOD-END> SEP-30-1997
<EXCHANGE-RATE> 1.000
<CASH> 861
<SECURITIES> 0
<RECEIVABLES> 23,938
<ALLOWANCES> 994
<INVENTORY> 35,779
<CURRENT-ASSETS> 67,591
<PP&E> 10,791
<DEPRECIATION> (7,000)
<TOTAL-ASSETS> 95,098
<CURRENT-LIABILITIES> 18,058
<BONDS> 0
0
0
<COMMON> 882
<OTHER-SE> 76,158
<TOTAL-LIABILITY-AND-EQUITY> 95,098
<SALES> 80,943
<TOTAL-REVENUES> 80,943
<CGS> 51,019
<TOTAL-COSTS> 35,095
<OTHER-EXPENSES> 399
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 136
<INCOME-PRETAX> (4,636)
<INCOME-TAX> (1,847)
<INCOME-CONTINUING> (2,789)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,789)
<EPS-PRIMARY> (0.34)
<EPS-DILUTED> (0.34)
</TABLE>
