UNITED STATES
                                        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 29, 1996.

                                                        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 1-6666

                                                SALANT CORPORATION
                       (Exact name of registrant as specified in its charter)

         Delaware                                        13-3402444
(State or other jurisdiction of                        I.R.S. Employer
incorporation or organization)                        Identification No.

1114 Avenue of the Americas, New York, New York            10036
(Address of principal executive offices)                 (Zip Code)

Registrant's telephone number, including area code:     (212) 221-7500

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

Indicate by check mark whether the registrant  has filed all documents and
reports  required to be filed by section
12, 13 or 15(d) of the Securities  Exchange Act of 1934 subsequent to the 
distribution of securities  under a plan
confirmed by a court.  Yes X  No

As of August 9, 1996,  there were  outstanding  14,761,690  shares of the Common
Stock of the registrant.





                                                 TABLE OF CONTENTS

                                          
PART I. FINANCIAL INFORMATION

Item 1. Financial Statements
Condensed Consolidated Statements of Operations 

Condensed Consolidated Balance Sheets

Condensed Consolidated Statements of Cash Flows

Notes to Condensed Consolidated Financial Statements 

Item 2. Management's Discussion and Analysis of
          Financial Condition and Results of Operations 
PART II. OTHER INFORMATION

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






                                        Salant Corporation and Subsidiaries
                                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                                    (Unaudited)
                                  (Amounts in thousands, except per share data)

                                                                    Three Months Ended                  Six Months Ended

                                                          June 29,           July 1,          June 29,
July 1,
                                                                   1996             1995              1996             1995
                                                                 ----------------------------------------------------------

                                                                                                      
Net sales                                                     $  97,010        $ 122,061         $ 196,204        $ 225,862

Cost of goods sold                                               78,980           97,540           155,593          178,874
                                                              --------------------------         --------------------------

Gross profit                                                     18,030           24,521            40,611           46,988

Selling, general and
 administrative expenses                                        (22,438)         (20,334)          (44,399)         (41,060)
Royalty income                                                    1,399            1,311             2,527            3,066
Goodwill amortization                                              (644)            (649)           (1,293)          (1,290)
Restructuring costs (Note 3)                                    (11,417)              --           (11,578)              --
Other income                                                         48              220                66              277
                                                              ---------        ---------         ---------        ---------

Income/(loss) from operations
 before interest and income taxes                               (15,022)           5,069           (14,066)           7,981

Interest expense, net                                             3,898            4,655             7,745            9,225
                                                              -------------------------------------------------------------

Income/(loss) from operations
 before income taxes                                            (18,920)             414           (21,811)          (1,244)

Income taxes                                                        (58)              22               (36)              63
                                                              --------- ---------------------------------- ----------------

Net income/(loss)                                             $ (18,862)       $     392         $ (21,775)       $  (1,307)
                                                              ========= ================         ========= ================

Net income/(loss) per share                                   $   (1.25)       $    0.03         $   (1.45)        $   (0.09)
                                                              =========        ===========================         =========

Weighted average common stock and
 common stock equivalents outstanding                            15,085           15,095            15,063           15,008
                                                              =============================================================


   See Notes to Condensed Consolidated Financial Statements.








                                        Salant Corporation and Subsidiaries
                                       CONDENSED CONSOLIDATED BALANCE SHEETS
                                              (Amounts in thousands)

                                                                   June 29,          December 30,
July 1,
                                                                            1996                 1995                  1995
                                                                     (Unaudited)            (*)     (Unaudited)

ASSETS
Current assets:
                                                                                                        
 Cash and cash equivalents                                            $    1,325           $    1,400            $    1,726
 Accounts receivable, net                                                 40,037               35,290                44,358
 Inventories (Note 2)                                                    121,470              119,120               153,598
 Prepaid expenses and
  other current assets                                                     4,517                5,016                 6,142
                      -----------------------------------------------------------------------------------------------------

Total current assets                                                     167,349              160,826               205,824

Property, plant and equipment, net                                        25,370               24,526                28,821

Other assets                                                              64,601               70,368                70,425
            ---------------------------------------------------------------------------------------------------------------

Total assets                                                          $  257,320           $  255,720            $  305,070
                                                                      =====================================================

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
 Loans payable                                                        $   31,473           $   14,422            $   61,762
 Accounts payable                                                         33,127               26,755                30,790
 Accrued liabilities                                                      18,125               20,397                18,543
 Net liabilities of discontinued
  operations                                                                 133                  311                   227
 Reserve for business restructuring (Note 3)                               4,617                1,569                    --
                                            -------------------------------------------------------------------------------

Total current liabilities                                                 87,475               63,454               111,322

Long term debt                                                           109,545              110,040               109,908
Deferred liabilities                                                      11,130               11,373                13,398

Shareholders' equity
 Common stock                                                             15,329               15,275                15,242
 Additional paid-in capital                                              107,121              107,071               107,017
 Deficit                                                                 (69,599)             (47,824)              (49,633)
 Excess of additional pension
  liability over unrecognized
  prior service cost                                                      (2,185)              (2,185)                 (773)
 Accumulated foreign currency
  translation adjustment                                                     118                  130                   203
 Less - treasury stock, at cost                                           (1,614)              (1,614)               (1,614)
                                                                      ---------- --------------------            ----------

Total shareholders' equity                                                49,170               70,853                70,442
                          -------------------------------------------------------------------------------------------------

Total liabilities and
 shareholders' equity                                                 $  257,320           $  255,720            $  305,070
                     ======================================================================================================

(*) Derived from the audited financial statements.

               See Notes to Condensed Consolidated Financial Statements.








                                         Salant Corporation and Subsidiaries
                                   CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                     (Unaudited)
                                               (Amounts in thousands)

                                                                                                    Six Months Ended
                                                                                         June 29,               July 1,
                                                                                             1996                  1995
                                                                                          -----------------------------

      Cash Flows from Operating Activities:
                                                                                                       
      Loss from operations                                                            $   (21,775)           $   (1,307)
      Adjustments  to  reconcile  loss  from  operations  to net  cash  used  in
       operating activities:
        Depreciation                                                                        2,085                 2,591
        Amortization of intangibles                                                         1,293                 1,290
        Write-down of fixed assets                                                            231                    --
        Write-off of other assets                                                           6,251                    --
        Loss on disposal of fixed assets                                                       17                    --
        Changes in operating assets and liabilities:
         Accounts receivable                                                               (4,747)               (7,775)
         Inventories                                                                       (2,350)              (28,999)
         Prepaid expenses and other current assets                                            418                  (878)
         Other assets                                                                      (1,502)                 (370)
         Accounts payable                                                                   6,372                 2,197
         Accrued liabilities and reserve for
          business restructuring                                                              776                  (222)
         Deferred liabilities                                                                (238)                  (81)
                             -------------------------------------------------------------------- ---------------------

      Net cash used in operating activities                                               (13,169)              (33,554)
                                           ------------------------------------------------------ ---------------------

      Cash Flows from Investing Activities:
      Capital expenditures                                                                 (3,222)               (4,055)
      Acquisition                                                                            (694)                   --
      Proceeds from sale of assets                                                             45                   103
                                                                                       --------------------------------

      Net cash used in investing activities                                                (3,871)               (3,952)
                                                                                       ---------- ---------------------

      Cash Flows from Financing Activities:
      Net short-term borrowings                                                            17,051                37,856
      Exercise of stock options                                                               104                    --
      Other, net                                                                              (12)                   --
                                                                                       ---------- ---------------------

      Net cash provided by financing activities                                            17,143                37,856
                                                                                       ----------            ----------

      Net cash provided by continuing operations                                              103                   350

      Cash used in discontinued operations                                                   (178)                 (589)
                                                                                       ----------            ----------

      Net decrease in cash and cash equivalents                                               (75)                 (239)

      Cash and cash equivalents - beginning of year                                         1,400                 1,965
                                                                                       --------------------------------

      Cash and cash equivalents - end of quarter                                       $    1,325            $    1,726
                                                                                       ================================

      Supplemental  disclosures of cash flow  information:  Cash paid during the
      period for:
          Interest                                                                     $    7,975            $    9,831
                                                                                       ================================
          Income taxes                                                                 $       69            $       59
                                                                                       ================================

                    See Notes to Condensed Consolidated Financial Statements.






                          SALANT CORPORATION AND SUBSIDIARIES
                 Notes to Condensed Consolidated Financial Statements
                 (Amounts in Thousands of Dollars, Except Share Data)
                                     (Unaudited)

Note 1. Basis of Presentation and Consolidation

The accompanying  unaudited Condensed  Consolidated Financial Statements include
the accounts of Salant  Corporation  ("Salant") and subsidiaries  (collectively,
the "Company").

The Company's principal business is the designing, manufacturing,  importing and
marketing of apparel.  The Company  sells its products to  retailers,  including
department and specialty  stores,  national chains,  major  discounters and mass
volume retailers, throughout the United States.

The results of  operations  for the three and six months ended June 29, 1996 and
July 1, 1995 are not necessarily indicative of a full year's operations.  In the
opinion  of  management,  the  accompanying  financial  statements  include  all
adjustments of a normal  recurring  nature which are necessary to present fairly
such financial  statements.  Significant  intercompany balances and transactions
are eliminated in consolidation.

Certain reclassifications were made to the 1995 unaudited Condensed Consolidated
Statement of Operations to conform with the 1996 presentation.

Income/(loss) per share is based on the weighted average number of common shares
(including,  as of June 29, 1996 and July 1, 1995,  344,730 and 761,840  shares,
respectively,  anticipated  to be  issued  pursuant  to the  Company's  plan  of
reorganization) and common stock equivalents  outstanding,  if applicable.  Loss
per share does not include  common stock  equivalents,  inasmuch as their effect
would have been anti-dilutive.

Note 2.  Inventories


                                                      June 29,             December  30,                    July 1,
                                                          1996                      1995                       1995

                                                                                                
Finished goods                                      $   80,612                $   72,850                 $   88,792
Work-in-Process                                         16,594                    15,829                     35,305
Raw materials and supplies                              24,264                    30,441                     29,501
                                                   -----------               --------------------------------------
                                                     $ 121,470                 $ 119,120                  $ 153,598
                                                     ===================================                  =========


Note 3. Restructuring Costs

In  the  second  quarter  of  1996,   the  Company   recorded  a  provision  for
restructuring  of  $11,417  consisting  of (i)  $5,691  in  connection  with the
decision  to put its' JJ.  Farmer  sportswear  product  line up for sale,  which
charge is primarily related to the write-off of goodwill and write-down of other
assets,  (ii) $2,858  related to the write-off of certain  assets related to the
licensing of the Gant dress shirt and accessories product lines, and the accrual
of a portion of the Gant future minimum royalties,  which are not expected to be
covered by future sales,  (iii) $1,842  primarily  related to employee  costs in
connection with the planned closing in 1996 of a manufacturing  and distribution
facility in  Thomson,  Georgia,  which was  announced  in March 1996,  (iv) $547
primarily  related to employee costs in connection with the closing in 1996 of a
manufacturing  facility in Americus,  Georgia and (v) $479 related  primarily to
severance costs.

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

The following  discussion and analysis of the consolidated results of operations
and financial  condition  should be read in  conjunction  with the  accompanying
unaudited  Condensed  Consolidated  Financial  Statements  and related  Notes to
provide additional information concerning the operations and financial condition
of Salant Corporation ("Salant") and its subsidiary companies (collectively, the
"Company").

Results of Operations

The following  discussion  compares the operating results of the Company for the
three and six months  ended June 29,  1996 with the  operating  results  for the
three and six months ended July 1, 1995.

The  following  table sets forth certain  financial  data for the
three and six months ended June 29, 1996 and July
1, 1995.


                                                                   (dollars in millions)
                                                       Three months ended                 Six months ended
                                                     June 29,      July 1,             June 29,      July 1,
                                                        1996         1995                  1996         1995
- -------------------------------------------------------------------------                  -----------------

                                                                                          
Net sales                                             $ 97.0       $122.1                $196.2       $225.9
Gross profit                                          $ 18.0      $  24.5                $ 40.6      $  47.0
Gross margin                                            18.6%        20.1%                 20.7%        20.8%
Income/(loss) from operations
 before interest and income taxes                     ($15.0)      $  5.1                ($14.1)       $ 8.0


Second Quarter 1996 Compared to Second Quarter 1995

Net sales for the second  quarter of 1996  amounted to $97.0  million, 
a 20.5%  decrease  from net sales of $122.1
- ---------
million in the second quarter of 1995.








                                                            (dollars in millions)
                                                  Net sales and percentage of total                 Percentage
                                                       for the three months ended                    Increase/
                                              June 29, 1996                    July 1, 1995         (Decrease)
                                          --------------------------------------------------------------------

                                                                                        
Men's Apparel                                $ 82.7         85.3%           $105.7         86.5%       (21.7%)
Children's Sleepwear and Underwear              4.4          4.5%              5.0          4.1%       (12.6%)
Other    Businesses (a)                         9.9         10.2%             11.4          9.4%       (13.1%)
                                           ----------------------         ----------------------
        Total                                $ 97.0          100%           $122.1           100%      (20.5%)
                                             ====================           =====================


(a)  Represents  the Made in the Shade  division  (a women's  junior  sportswear
business) and the retail outlet stores division ( the "Stores division").

Sales of Men's Apparel  decreased  $22.9  million,  or 21.7%.  This decrease was
primarily  attributable to: (a) a decrease in the Company's dress shirt sales of
$8.2  million,  or 24.5%,  primarily  due to lower sales of the John Henry dress
shirt line to traditional  department stores and the  discontinuation of several
dress shirt lines,  including Liberty of London, Nino Cerruti and Ron Chereskin,
as disclosed in the 1995 Annual Report on Form 10-K;  (b) a decrease in sales of
men's sportswear of $11.9 million,  or 42.0% resulting from lower sales of Perry
Ellis sportswear to off-price retailers and a planned decrease in sales of lower
margin Manhattan label  sportswear;  and (c) a decrease in sales of men's slacks
of $3.0 million, or 18.8%,  resulting from the planned reduction in sales of the
Thomson pant  business  during 1996,  as disclosed in the 1995 Annual  Report on
Form 10-K.  These  decreases  were  offset by an  increase in the sales of men's
jeans  of $1.6  million,  or 9.5%,  resulting  from the  growing  acceptance  by
consumers of Canyon River Blues, an exclusive brand program for Sears, Roebuck &
Co.  ("Sears"),  which was introduced in the latter part of the first quarter of
1995.

Sales of Children's  Sleepwear and Underwear  decreased $0.6 million,  or 12.6%.
This decrease related to lower sales of licensed  character  products during the
second  quarter,  partially  as a result of higher  shipments  made in the first
quarter of 1996 as compared to the first quarter of 1995.

Sales of Other  Businesses  decreased  $1.5  million,  or 13.1%.  This  decrease
related  to a  decrease  in sales by (i) the Made in the Shade  division  due to
extremely  tight pricing by retailers which led the division to decline a number
of programs which lacked acceptable margins and (ii) the Stores division related
primarily to a decrease in sales  through the  Manhattan  brand store format (an
older and larger type of retail outlet store).

Gross profit as a percentage of net sales  decreased to 18.6% ($18.0 million) in
the  second  quarter  of 1996 from  20.1% of net sales  ($24.5  million)  in the
comparable 1995 quarter.








                                                        (dollars in millions)
                                                    Gross profit and gross margin
              for the three months ended
                                              June 29, 1996                  July 1, 1995
- ----------------------------------------------------------------------  -----------------

                                                                          
Men's Apparel                                  $ 14.1       17.1%        $ 19.0       18.0%
Children's Sleepwear and Underwear                0.6       14.2%           1.7       33.4%
Other Businesses (a)                              3.3       33.0%           3.8       33.4%
                                             --------                  --------

        Total                                $ 18.0         18.6%        $ 24.5       20.1%
                                             ===============             =============


(a)  Represents  the Made in the Shade  division  (a women's  junior  sportswear
business) and the Stores division.

The decrease in gross margin  occurred  principally in (a) men's  apparel,  as a
result of lower margins on sportswear  resulting from increased markdowns needed
(i) to sell the  remaining  inventory  of the JJ.  Farmer  product  line,  which
business has been put up for sale, (ii) to reflect the change in distribution of
the John Henry dress shirt and accessories  product lines,  as discussed  above,
and  (iii)  for  the  Manhattan   sportswear   product  line,   which  has  been
significantly  scaled down,  and (b) children's  sleepwear and  underwear,  as a
result of a decrease in licensed  character sales,  which  traditionally  earn a
higher gross margin, and an increase in the percentage of off-price sales, which
carry a lower gross margin.

Gross margins for the quarter were negatively  affected by $3.3 million (3.4% of
net sales) of charges,  primarily related to inventory  markdowns,  as discussed
above. Of this amount, $3.0 million (3.6% of net sales) related to Men's Apparel
and the balance to the Other Businesses.

Selling,  general  and  administrative  expenses  as a  percentage  of net sales
increased to 23.1% ($22.4  million),  as compared to the second quarter of 1995,
when such expenses amounted to 16.7% of net sales ($20.3 million).  The increase
in such expenses as a percentage of net sales was primarily  attributable to the
installation of store fixtures for Perry Ellis Sportswear and Canyon River Blues
shops  within  department  stores and Sears,  respectively.  These  expenditures
commenced  in the second half of 1995.  The  non-cash  portion of the  increased
expenses relating to store fixtures accounted for approximately 29% of the total
increase in S,G&A expense.

S,G&A expenses for the quarter included  certain charges of $1.1 million,  which
primarily related to the restructuring of the Men's Apparel businesses.

In  the  second  quarter  of  1996,   the  Company   recorded  a  provision  for
restructuring of $11.4 million consisting of (i) $5.7 million in connection with
the decision to put its' JJ. Farmer  sportswear  product line up for sale, which
charge is primarily  related to the write-off of goodwill and the  write-down of
other assets,  (ii) $2.9 million  related to the write-off of certain  assets in
connection  with the licensing of the Gant dress shirt and  accessories  product
lines, and the accrual of a portion of the Gant future minimum royalties,  which
are not expected to be covered by future  sales,  (iii) $1.8  million  primarily
related  to  employee  costs  in  connection  with  the  closing  in  1996  of a
manufacturing and distribution facility in Thomson, Georgia, which was announced
in March  1996,  (iv)  $0.5  million  primarily  related  to  employee  costs in
connection  with the closing in 1996 of a  manufacturing  facility in  Americus,
Georgia and (v) $0.5 related primarily to severance costs.

The  restructuring  of the menswear  business is designed to focus  resources on
those brands and products  that offer the Company the  opportunity  for superior
margins because they either (i) have significant consumer  recognition,  such as
Perry  Ellis,  Manhattan  and  Joe  Boxer  products  or  (ii)  require  Salant's
merchandising and marketing expertise, which provides significant added value to
the Company's retail customer, as in the case of the Canyon River Blues program.
Salant will expend its energies on a selected  number of key brands and programs
which  offer  it  the  opportunity  to  maximize  its  corporate  marketing  and
merchandising strengths in order to improve profitability.

For the second quarter of 1996,  the loss from  operations  before  interest and
income taxes was $15.0 million,  or (15.5%) of net sales,  as compared to income
from operations before interest and income taxes of $5.1 million, or 4.2% of net
sales, in the 1995 second quarter. The loss from operations (both in dollars and
as a percentage of net sales) resulted from lower net sales, a decrease in gross
margin, the increase in S,G&A expenses, and the provision for restructuring, all
as discussed above.



                                                        (dollars in millions)
                                            Income/(loss) from operations before interest
                                                 and income taxes, and percentage of
       net sales for the three months ended
                                              June  29, 1996                 July  1, 1995
- ----------------------------------------------------------------------  ------------------

                                                                           
Men's Apparel                                $  (12.5)     (15.2%)       $  4.8        4.6%
Children's Sleepwear and Underwear               (0.6)     (13.7%)          0.5        9.2%
Other Businesses (a)                             (0.6)      (6.2%)         (0.2)      (1.6%)
                                           ----------                   ------- ------

                                                (13.7)     (14.2%)          5.1        4.2%
Corporate expenses                               (2.4)                     (1.3)
Licensing division income                         1.1                       1.3
                                           ----------                   -------
Income/(loss) from operations before
 interest and income taxes                   $  (15.0)     (15.5%)       $  5.1        4.2%
                                             ========             =============


(a)  Represents  the Made in the Shade  division  (a women's  junior  sportswear
business) and the Stores division.

Net interest  expense for the second quarter of 1996 amounted to $3.9 million as
compared to $4.7 million in the prior year's second  quarter.  Lower  borrowings
accounted for most of the decreased interest expense.

As a result of the above,  the net loss for the 1996  second  quarter  was $18.9
million,  or ($1.25) per share,  compared  with net income of $0.4  million,  or
$0.03 per share, for the second quarter of 1995.

Earnings/(loss)   before  interest,   taxes,   depreciation,   amortization  and
restructuring charges was ($1.2) million in the second quarter of 1996, compared
to $7.0 million in the second  quarter of 1995, a decrease of $8.2  million,  or
117%. The Company  believes this  information is helpful in  understanding  cash
flow from  operations  that is  available  for debt  service,  taxes and capital
expenditures.  This measure is not  contained in Generally  Accepted  Accounting
Principles and is not a substitute for operating income,  net income or net cash
flows from operating activities.

Year to Date 1996 Compared to Year to Date 1995

Net sales for the six months ended June 29, 1996  amounted 
to $196.2  million,  a 13.1%  decrease from net sales of
- ---------
$225.9 million in the six months ended July 1, 1995.



                                                            (dollars in millions)
                                                  Net sales and percentage of total                 Percentage
                                                           for the six months ended                  Increase/
                                               June 29, 1996                    July 1, 1995        (Decrease)
                                          --------------------------------------------------------------------

                                                                                        
Men's Apparel                                $169.8         86.6%           $199.4         88.3%       (14.8%)
Children's Sleepwear and Underwear              8.6          4.4%              8.4          3.7%         3.1%
Other    Businesses (a)                        17.8          9.0%             18.1          8.0%        (2.2%)
                                           ----------------------         ----------------------
        Total                                $196.2          100%           $225.9           100%      (13.1%)
                                             ====================           =====================


(a)  Represents  the Made in the Shade  division  (a women's  junior  sportswear
business) and the Stores division.

Sales of Men's Apparel  decreased  $29.6  million,  or 14.8%.  This decrease was
primarily  attributable to: (a) a decrease in sales of men's sportswear of $14.1
million,  or 25.4%  resulting  from lower  sales of Perry  Ellis  sportswear  to
off-price  retailers and a planned  decrease in sales of lower margin  Manhattan
label  sportswear;  (b) a decrease in the  Company's  dress shirt sales of $11.3
million, or 17.5%,  primarily due to lower sales of the John Henry dress line to
traditional  department  stores and the  discontinuation  of several dress shirt
lines, including Liberty of London, Nino Cerruti and Ron Chereskin, as disclosed
in the 1995  Annual  Report on Form 10-K;  and (c) a decrease  in sales of men's
slacks of $7.1 million, or 22.4%,  resulting from the planned reduction in sales
of the Thomson pant business  during 1996, as also  disclosed in the 1995 Annual
Report on Form 10-K . These decreases were offset by an increase in the sales of
men's jeans of $4.3 million,  or 17.1%,  resulting from a complete six months of
sales of Canyon River Blues,  an exclusive  brand  program for Sears,  which was
introduced in the latter part of the first quarter of 1995.

Gross profit as a percentage of net sales  decreased to 20.7% ($40.6 million) in
the six months ended June 29, 1996 from 20.8% of net sales  ($47.0  million) for
the six months ended July 1, 1995.








                                                        (dollars in millions)
                                                    Gross profit and gross margin
              for the six months ended
                                              June  29, 1996                 July 1, 1995
- ----------------------------------------------------------------------  -----------------

                                                                          
Men's Apparel                                  $ 33.2       19.6%        $ 38.3       19.2%
Children's Sleepwear and Underwear                1.5       17.6%           2.3       27.7%
Other Businesses (a)                              5.9       33.0%           6.4       35.4%
                                             --------                  --------

        Total                                $ 40.6         20.7%        $ 47.0       20.8%
                                             ===============             =============


(a)  Represents  the Made in the Shade  division  (a women's  junior  sportswear
business) and the Stores division.

The decrease in gross margin  occurred  principally in children's  sleepwear and
underwear as a result of a higher  percentage of off-price sales,  which carry a
lower gross margin.

Gross margins for the first half were negatively  affected by $3.3 million (1.7%
of net  sales)  of  charges,  primarily  related  to  markdowns,  as  previously
discussed.  Of this amount,  $3.0 million  (1.8% of net sales)  related to Men's
Apparel, the balance to the Other Businesses.

Selling,  general  and  administrative  expenses  as a  percentage  of net sales
increased to 22.6% ($44.4 million),  as compared to the first half of 1995, when
such expenses  amounted to 18.2% of net sales ($41.1  million).  The increase in
such  expenses as a percentage of net sales was  primarily  attributable  to the
installation of store fixtures for Perry Ellis Sportswear and Canyon River Blues
shops in department stores and Sears, respectively. These expenditures commenced
in the second  half of 1995.  The  non-cash  portion of the  increased  expenses
relating to store fixtures accounted for approximately 26% of the total increase
in S,G&A expense.

S,G&A  expenses for the first half  included  certain  charges of $1.1  million,
which primarily related to the restructuring of the Men's Apparel businesses.

Royalty income for the six months ended June 29, 1996 was $2.5 million, compared
to $3.1 million in the first half of 1995. This decrease resulted primarily from
(i) lower sales by  licensees  in the fourth  quarter of the prior  year,  which
resulted in a decrease in royalties received by the Company in the first half of
the current year, and (ii) the expiration of certain license agreements prior to
the first half of 1996.

In the first half of 1996, the Company recorded a provision for restructuring of
$11.6 million  consisting of (i) $5.7 million in connection with the decision to
put its' JJ.  Farmer  sportswear  product  line up for  sale,  which  charge  is
primarily  related to the  write-off  of goodwill  and the  write-down  of other
assets,  (ii) $2.9 million related to the write-off of certain assets related to
the licensing of the Gant dress shirt and  accessories  product  lines,  and the
accrual  of a  portion  of the Gant  future  minimum  royalties,  which  are not
expected to be covered by future sales,  (iii) $1.8 million primarily related to
employee  costs in connection  with the closing in 1996 of a  manufacturing  and
distribution  facility in Thomson,  Georgia,  which was announced in March 1996,
(iv) $0.5 million  primarily  related to employee  costs in connection  with the
closing in 1996 of a  manufacturing  facility in Americus,  Georgia and (v) $0.7
million related primarily to severance costs.

For the six months ended June 29, 1996, the loss from operations before interest
and income  taxes was $14.1  million,  or (7.2%) of net sales,  as  compared  to
income from operations before interest and income taxes of $8.0 million, or 3.5%
of net sales, in the 1995 first half.  Income from operations as a percentage of
net sales was lower in 1996 primarily as a result of the net sales decrease, the
increase in S,G&A expenses and the provision for restructuring  discussed above.



                                                        (dollars in millions)
                                            Income/(loss) from operations before interest
                                                 and income taxes, and percentage of
       net sales for the six months ended
                                              June 29, 1996                  July 1, 1995
- ----------------------------------------------------------------------  -----------------

                                                                           
Men's Apparel                                $   (8.2)      (4.8%)       $  9.7        4.8%
Children's Sleepwear and Underwear               (1.0)     (12.2%)         (0.2)      (1.9%)
Other Businesses (a)                             (2.2)     (12.3%)         (1.5)      (8.0%)
                                            ---------                   ------- ------

                                                (11.4)      (5.8%)          8.0        3.5%
Corporate expenses                               (4.6)                     (2.7)
Licensing division income                         1.9                       2.7
                                            ---------                   -------
Income/(loss) from operations before
 interest and income taxes                    $ (14.1)      (7.2%)       $  8.0        3.5%
                                              =======             =============


(a)  Represents  the Made in the Shade  division  (a women's  junior  sportswear
business) and the Stores division.

Net  interest  expense for the six months  ended June 29, 1996  amounted to $7.7
million as  compared  to $9.2  million in the prior  year's  first  half.  Lower
borrowings accounted for most of the decreased interest expense.

As a  result  of the  above,  the net loss for the  1996  first  half was  $21.8
million,  or ($1.45) per share,  compared  with a net loss of $1.3  million,  or
($0.09) per share, for the first half of 1995.

Earnings before interest,  taxes,  depreciation,  amortization and restructuring
charges  was $1.9  million in the six months  ended June 29,  1996,  compared to
$11.9  million in the first half of 1995, a decrease of $10.0  million,  or 84%.
The Company believes this information is helpful in understanding cash flow from
operations that is available for debt service,  taxes and capital  expenditures.
This measure is not contained in Generally Accepted Accounting Principles and is
not a  substitute  for  operating  income,  net  income or net cash  flows  from
operating activities.






Liquidity and Capital Resources

The Company is a party to a revolving credit,  factoring and security agreement,
as amended,  (the "Credit  Agreement") with The CIT  Group/Commercial  Services,
Inc. ("CIT") to provide seasonal working capital financing in the form of direct
borrowings and letters of credit, up to an aggregate of $135 million, subject to
an asset based borrowing formula (the "Maximum Credit"). Effective June 1, 1996,
the Company and CIT executed the Eighth Amendment to the Credit  Agreement.  The
Eighth  Amendment  replaced  the  notification   factoring  arrangement  with  a
non-notification  factoring  arrangement  covering a smaller  percentage  of the
Company's sales at a substantially reduced factoring charge. On August 16, 1996,
the Company and CIT executed the Ninth  Amendment to the Credit  Agreement.  The
Ninth  Amendment  modified  certain  financial  covenants  relating  to  working
capital,  stockholders'  equity and maximum loss and waived a default  resulting
from the  Company's  non-compliance  with these  covenants  as of June 29, 1996.
Interest  on direct  borrowings  is  charged  monthly  at an annual  rate of one
percent  in  excess of the base rate of the  Chase  Manhattan  Corporation  (the
"Prime Rate",  which was 8.25% at June 29, 1996).  As collateral  for borrowings
under the Credit  Agreement,  Salant has  granted to CIT a security  interest in
substantially  all of the assets of the  Company.  As of June 29,  1996,  direct
borrowings  and letters of credit  outstanding  under the Credit  Agreement were
$31.5  million  and $34.4  million,  respectively,  and the  Company  had unused
availability of $21.1 million. As of July 1, 1995, direct borrowings and letters
of credit  outstanding  under the Credit  Agreement were $61.8 million and $29.1
million,  respectively, and the Company had unused availability of $5.6 million.
The average  interest rate on borrowings  for the six months ended June 29, 1996
and July 1, 1995 was 9.4% and 9.8%, respectively.

The Credit  Agreement  and the indenture  governing  the 10 1/2% Senior  Secured
Notes due December 31, 1998 contain numerous financial and operating  covenants,
including  restrictions on incurring  indebtedness and liens, making investments
in or  purchasing  the  stock,  or all or a  substantial  part of the  assets of
another person, selling property,  making capital expenditures,  and paying cash
dividends. In addition,  under the Credit Agreement, the Company is required (i)
during the year, to maintain minimum levels of working capital and stockholders'
equity and to satisfy a maximum  cumulative  net loss test and (ii) at year end,
to  satisfy a ratio of total  liabilities  to  stockholders'  equity and a fixed
charge  coverage ratio. At June 29, 1996, the Company was in compliance with all
financial covenants as indicated below:



                                                  Covenant                      June 29, 1996
Credit Agreement Covenants                        Level  (a)                     Actual Level

                                                                          
Working Capital                                    $ 75.0 million               $ 79.9 million
Stockholders' Equity                               $ 45.0 million               $ 49.2 million
Maximum Loss                                       $(15.0) million              $ (7.0) million


(a) The covenant levels reflect all  modifications  in the Credit Agreement made
pursuant to the Ninth Amendment.

The Company is also required to reduce its indebtedness  (excluding  outstanding
letters of credit) to $20  million or less for fifteen  consecutive  days during
each twelve month period  commencing  February 1, 1994. The Company has complied
with this covenant for all periods through January 31, 1997.

The  Company's  cash  used in  operating  activities  was  $13.2  million.  This
represented a $20.4 million  (61%)  improvement  over the first half of 1995 and
was primarily a result of inventory management improvements. Inventory increased
by only $2.4 million in the first half of 1996;  during the same period in 1995,
inventory increased $29.0 million.

The restructuring provision of $11.6 million in the first half 1996 has required
cash payments  amounting to $1.2 million to date and will require  approximately
$5.3 million of additional cash over a period of time extending  beyond 1996. In
addition,  the  restructuring  charge  included  a  non-  cash  charge  relating
primarily to the write-off of goodwill in the amount of $6.4 million.

Cash used for  investing  activities  in the first  half of 1996
was $3.9  million,  primarily  related  to capital expenditures.

Cash  provided  by  financing  activities  in the  first  half of 1996 was $17.1
million,  which  represented  short-term  borrowings under the Credit Agreement.
This represents a 55% reduction from the $37.9 million of short-term  borrowings
required in the first half of 1995.

Capital  expenditures  in the first six  months  of 1996 were $3.2  million,  as
compared  to $4.1  million in the first six months of 1995.  These  expenditures
were funded primarily from short term borrowings.  Capital  expenditures for the
full year of 1996 are anticipated to be approximately $9.0 million.

Salant's  principal  sources of liquidity,  both on a short-term and a long-term
basis, are provided by operations and borrowings under the Credit Agreement.

Based upon its analysis of its consolidated  financial  position,  its cash flow
during  the past  twelve  months,  and its cash  flow  anticipated  from  future
operations,  Salant  believes  that its future  cash flows  together  with funds
available  under the Credit  Agreement  will be adequate  to meet the  financing
requirements  it  anticipates  during the next  twelve  months.  There can be no
assurance,  however,  that future  developments and general economic trends will
not adversely  affect the Company's  operations and, hence, its anticipated cash
flow.

Factors that May Affect Future Results and Financial Condition.

The Company's future operating results and financial  condition are dependent on
the Company's  ability to successfully  design,  manufacture,  import and market
apparel.  Inherent  in this  process  are many  factors  that the  Company  must
successfully  manage  in  order  to  achieve  favorable  operating  results  and
financial condition including, without limitation, the following:

Competition. The apparel industry in the United States is highly competitive and
characterized by a relatively small number of multi-line  manufacturers (such as
the Company) and a large number of specialty  manufacturers.  The Company  faces
substantial  competition in its markets from  manufacturers  in both categories.
Many of the Company's  competitors  have greater  financial  resources  than the
Company.

Apparel  Industry  Cycles  and other  Economic  Factors.  The  apparel  industry
historically has been subject to substantial  cyclical variation,  with consumer
spending on apparel tending to decline during recessionary periods. A decline in
the general economy or  uncertainties  regarding  future economic  prospects may
affect consumer  spending habits,  which, in turn, could have a material adverse
effect on the Company's results of operations and financial condition.

Retail  Environment.   Various  retailers,   including  some  of  the  Company's
customers,  have  experienced  declines in revenue and profits in recent periods
and some have been forced to file for bankruptcy protection.  To the extent that
these  financial  difficulties  continue,  there  can be no  assurance  that the
Company's  financial  condition and results of operations would not be adversely
affected.

Seasonality of Business and Fashion Risk. The Company's  principal  products are
organized  into seasonal lines for resale at the retail level during the Spring,
Fall and Christmas  Seasons.  Typically,  the Company's products are designed as
much as one year in advance and manufactured approximately one season in advance
of the related retail selling season. Accordingly,  the success of the Company's
products  is often  dependent  on the  ability of the  Company  to  successfully
anticipate  the needs of the  Company's  retail  customers and the tastes of the
ultimate consumer up to a year prior to the relevant selling season.

Substantial  Level of  Indebtedness.  The  Company  had  indebtedness  of $141.0
million as of June 29, 1996. This level of indebtedness  could adversely  affect
the Company's  operations  because a substantial  portion of the Company's  cash
flow from  operations  must be  dedicated  to the payment of interest and would,
therefore,  not  be  available  for  other  purposes.  Further,  this  level  of
indebtedness  might  inhibit the  Company's  ability to obtain  financing in the
future  for  working   capital  needs,   capital   expenditures,   acquisitions,
investments, general corporate purposes or other purposes.

Foreign  Operations.  The Company's  foreign sourcing  operations are subject to
various  risks  of  doing  business  abroad,   including  currency  fluctuations
(although  the  predominant  currency used is the U.S.  dollar),  quotas and, in
certain parts of the world, political instability. Any substantial disruption of
its relationship with its foreign suppliers could adversely affect the Company's
operations.  Some of the  Company's  imported  merchandise  is subject to United
States  Customs  duties.  In addition,  bilateral  agreements  between the major
exporting  countries  and the United States impose quotas which limit the amount
of  certain  categories  of  merchandise  that may be  imported  into the United
States. Any material increase in duty levels,  material decrease in quota levels
or material  decrease in available quota  allocation  could adversely affect the
Company's operations.

Dependence on Contract  Manufacturing.  In 1995, the Company produced 64% of all
of its  products  (in units)  through  arrangements  with  independent  contract
manufacturers.  The use of such  contractors  and the  resulting  lack of direct
control could subject the Company to difficulty in obtaining  timely delivery of
products of acceptable  quality.  In addition,  as is customary in the industry,
the  Company  does not  have  any  long-term  contracts  with  its raw  material
suppliers or product  manufacturers.  While the Company is not  dependent on one
particular product  manufacturer or raw material  supplier,  the loss of several
such product manufacturers and/or raw material suppliers in a given season could
have a material adverse effect on the Company's performance.

Because  of the  foregoing  factors,  as well as  other  factors  affecting  the
Company's operating results and financial condition,  past financial performance
should not be considered to be a reliable indicator of future  performance,  and
investors are cautioned not to use  historical  trends to anticipate  results or
trends in the future.  In addition,  the Company's  participation  in the highly
competitive  apparel  industry  often results in  significant  volatility of the
Company's common stock price.






ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

Reports on Form 8-K

During the second  quarter of 1996, the Company did not file any reports on Form
8-K.

Exhibits

Number                      Description

10.37                       Eighth Amendment to Credit Agreement, dated as of
                            June 1, 1996, to the Revolving Credit, Factoring and
                            Security Agreement, dated as of September 20, 1993,
                            as amended, between Salant Corporation and
                            The CIT Group/Commerical Services, Inc.

10.38                       Ninth Amendment to Credit Agreement, dated as of
                            August 16, 1996, to the Revolving Credit,
                            Factoring and Security Agreement, dated as of 
                            September 20, 1993, as amended, between
                            Salant Corporation and
                            The CIT Group/Commerical Services, Inc.

27                          Financial Data Schedule






                                                     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.



                               SALANT CORPORATION



Date:      August 19, 1996                          /s/     Richard P. Randall
      --------------------------------------------------------------------------

                               Richard P. Randall
                              Senior Vice President
                            and Chief Financial Officer
                           (Principal Financial Officer)