SECURITIES AND EXCHANGE COMMISSION

                                                                 WASHINGTON, D.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

June 30, 2002

                                                                                        OR

[ ]

                 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)

                             OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number

 1-457

                   BULOVA CORPORATION

                                                           (Exact name of registrant as specified in its charter)

             New York

     11-1719409

(State or other jurisdiction of

(I.R.S. Employer

incorporation or organization)

Identification No.)

                                                     ONE BULOVA AVENUE, WOODSIDE, NY 11377-7874

                                                              Address of principal executive offices (Zip code)

                                                                                         (718) 204-3300

                                                        (Registrant's telephone number, including area code)

                                                                                     NOT APPLICABLE

                                                            (Former name, former address and former fiscal year,

                                                                                     if changed since last report)

Yes

       X

No

_________

__________

                 Class

 Outstanding at August 2, 2002

___________________________

__________________________

Common stock, $5 par value

             4,599,857 shares

    No.  

Part I. Financial Information

    No.  

______

______

    1.

Financial Statements

  Consolidated Condensed Balance Sheets
    June 30, 2002 and December 31, 2001

     3

  Consolidated Condensed Statements of Income

    Three and six months ended June 30, 2002 and 2001

     4

  Consolidated Condensed Statements of Cash Flows

    Six months ended June 30, 2002 and 2001

     5

Notes to Consolidated Condensed Financial Statements

     6

    2.

   of Operations

     9

Part II. Other Information

    6.

Exhibits and Reports on Form 8-K

    11

BULOVA CORPORATION AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(Amounts in thousands)

______________________________________________________________________________________

June 30,

December 31,

Assets

2002 

2001 

______________________________________________________________________________________

Current Assets:

   Cash and cash equivalents

$           8,976 

$          18,937 

   Short-term investments

9,981 

   Accounts and notes receivable -- net

65,838 

77,008 

   Inventories, principally watches and clocks

49,433 

48,914 

   Prepaid expenses

2,342 

2,607 

   Deferred income taxes

10,689 

11,809 

______________________________________________________________________________________

      Total current assets

147,259 

159,275 

______________________________________________________________________________________

Property, plant and equipment-net

16,211 

16,645 

______________________________________________________________________________________

Other assets:

   Long-term investments

4,996 

   Deferred income taxes

12,699 

12,904 

   Trademarks

4,983 

4,983 

   Other

643 

193 

______________________________________________________________________________________

      Total other assets

23,321 

18,080 

______________________________________________________________________________________

      Total assets

$       186,791 

$        194,000 

=====================================================================================

Liabilities and Shareholders' Equity

Current liabilities:

   Accounts payable

$           1,995 

$            8,391 

   Accrued expenses

16,252 

20,257 

   Accrued federal and foreign taxes

169 

1,140 

______________________________________________________________________________________

      Total current liabilities

18,416 

29,788 

______________________________________________________________________________________

Other liabilities and credits:

   Postretirement benefits payable

30,316 

31,041 

   Pension benefits payable

2,020 

2,020 

______________________________________________________________________________________

      Total other liabilities and credits

32,336 

33,061 

______________________________________________________________________________________

Shareholders' equity

136,039 

131,151 

______________________________________________________________________________________

      Total liabilities and shareholders' equity

$       186,791 

$        194,000 

=====================================================================================

BULOVA CORPORATION AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(Amounts in thousands, except per share data)

______________________________________________________________________________________

Three Months Ended

Six Months Ended

June 30,

June 30,

_____________________________________________________________________________________

2002

2001 

2002

2001

______________________________________________________________________________________

Net sales

$     40,872 

$     30,746 

$     72,318 

$      62,786

Cost of sales

19,256 

14,927 

34,273 

29,506

______________________________________________________________________________________

Gross profit

21,616 

15,819 

38,045 

33,280

Selling, general and administrative expenses

17,416 

13,472 

31,833 

27,494

______________________________________________________________________________________

Operating income

4,200 

2,347 

6,212 

5,786

Royalty income

95 

621 

913 

1,192

Interest -- net

137 

369 

204 

627

Other income

192 

42 

247 

46

______________________________________________________________________________________

Income before income taxes

4,624 

3,379 

7,576 

7,651

Income tax expense

1,916 

1,453 

3,248 

3,286

______________________________________________________________________________________

Net income

$       2,708 

$       1,926 

$       4,328 

$       4,365

=====================================================================================

Net income per share

$           .59 

$           .42 

$           .94 

$           .95

=====================================================================================

Weighted average number of shares

   outstanding

4,599 

4,599 

4,599 

4,599

======================================================================================

BULOVA CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except per share data)

1.

See Notes to Consolidated Financial Statements in the Annual Report on Form 10-K for the year ended December 31, 2001 filed with the Securities and Exchange Commission on March 27, 2002. There have been no changes in significant accounting policies since December 31, 2001.

(a) Accounting Pronouncements - In 2002, the Company implemented the provisions of the Emerging Issues Task Force ("EITF") Issue No. 00-14, "Accounting for Certain Sales Incentives" and EITF Issue No. 00-25, "Vendor Income Statement Characterization of Consideration from a Vendor to a Retailer." EITF Issue No. 00-14 addresses the recognition, measurement, and income statement characterization of sales incentives, including rebates, coupons and free products or services, offered voluntarily by a vendor without charge to the customer that can be used in, or that are exercisable by a customer as a result of, a single exchange transaction. EITF Issue No. 00-25 addresses whether consideration from a vendor to a reseller of the vendor's products is (i) an adjustment of the selling prices of the vendor's products and, therefore, should be deducted from revenue when recognized in the vendor's income statement or (ii) a cost incurred by the vendor for assets or services received from t he reseller and, therefore, should be included as a cost or an expense when recognized in the vendor's income statement. Adoption of this standard did not have a material impact on the Company's results of operations or financial position.

In June 2001, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards ("SFAS") No. 142, "Goodwill and Other Intangible Assets." SFAS No. 142 changes the accounting for goodwill and intangible assets with indefinite lives from an amortization method to an impairment-only approach. The Company has adopted this standard for the acquisition of the Wittnauer brand and has not recorded any amortization expense on its Wittnauer trademark. In compliance with SFAS No. 142, the Company completed impairment tests on its Wittnauer trademark in June 2002 and based upon the analysis performed, the Company believes there is no impairment at this time. The Company will complete impairment tests again at year end.

In June 2001, the FASB issued SFAS No. 143, "Accounting for Asset Retirement Obligations." SFAS No. 143 applies to the accounting and reporting obligations associated with the retirement of tangible long-lived assets and the associated asset retirement costs. This standard applies to legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and the normal operation of long-lived assets, except for certain obligations of lessees. Adoption of this standard is required for fiscal years beginning after June 15, 2002 and will not have a material impact on the Company's results of operations or financial position.

Effective January 1, 2002, the Company adopted SFAS No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets." SFAS No. 144 essentially applies one accounting model for long-lived assets to be disposed of by sale, whether previously held and used or newly acquired, and broadens the presentation of discontinued operations to include more disposal transactions. Adoption of this standard did not have a material impact on the consolidated results of operations or financial position of the Company.

(b) The accompanying consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America applicable to interim financial information. Accordingly, they do not include all disclosures required by accounting principles generally accepted in the United States of America for complete financial statements. The accompanying consolidated condensed financial statements have not been audited, however, in the opinion of Management, contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position as of June 30, 2002 and December 31, 2001 and the results of operations for the three and six months ended June 30, 2002, and changes in cash flows for the six months ended June 30, 2002 and 2001.

Results of operations through the second quarter and six months of each of the years is not necessarily indicative of results of operations for that entire year.

2.

Under the tax allocation agreement between the Company and its parent, Loews Corporation ("Loews"), the Company has paid Loews approximately $805, $713, $1,723, and $2,472 for the three and six months ended June 30, 2002 and 2001, respectively.

See Note 2 of the Notes to Consolidated Financial Statements in the Annual Report on Form 10-K for the year ended December 31, 2001.

3.

Loews provides administrative and managerial services for which the Company was charged $750 and $1,500 in each of the three and six months ended June 30, 2002 and 2001, respectively. This expense is included in selling, general and administrative expenses. The cost allocated to the Company is estimated to be the incremental cost incurred by Loews in providing these services to the Company.

4.

Geographic Information:

The Company operates in a single industry segment, the distribution and sale of watches and clocks under the brand names of Bulova, Caravelle, Accutron and Wittnauer. Substantially all of the Company's sales are in the United States, Canada and Mexico. The Company evaluates performance based on operating earnings of the respective geographic area and the geographic distribution of the Company's identifiable assets and operating results are summarized in the following tables:

United

Three Months Ended June 30, 2002

States

Canada

Mexico

Total

______________________________________________________________________________________

Sales

$     37,720 

$       3,438 

$           994 

$       42,152 

Intercompany sales

(1,280)

(1,280)

______________________________________________________________________________________

Total net sales

$     36,440 

$       3,438 

$           994 

$       40,872 

=====================================================================================

Operating income

$       3,611 

$          391 

$           198 

$         4,200 

Royalty income

95 

95 

Interest -- net

126 

11 

137 

Other income

55 

23 

114 

192 

______________________________________________________________________________________

Income before income taxes

$       3,887 

$          425 

$           312 

$         4,624 

=====================================================================================

Three Months Ended June 30, 2001

______________________________________________________________________________________

Sales

$     27,180 

$       3,081 

$         1,485 

$       31,746 

Intercompany sales

(1,000)

(1,000)

___________________________________________________________________________

Total net sales

$     26,180 

$       3,081 

$         1,485 

$       30,746 

=====================================================================================

Operating income

$       1,704 

$          415 

$            228 

$        2,347 

Royalty income

621 

621 

Interest -- net

326 

43 

369 

Other income

7 

28 

7 

42 

______________________________________________________________________________________

Income before income taxes

$       2,658 

$          486 

$            235 

$        3,379 

=====================================================================================

4.

Geographic Information - Continued

United

Six Months Ended June 30, 2002

States

Canada

Mexico

Total

______________________________________________________________________________________

Sales

$     66,434 

$        6,423 

$         1,765 

$       74,622 

Intercompany sales

(2,304)

(2,304)

______________________________________________________________________________________

Total net sales

$     64,130 

$        6,423 

$         1,765 

$       72,318 

=====================================================================================

Operating income

$       5,502 

$           445 

$            265 

$         6,212 

Royalty income

913 

913 

Interest -- net

178 

26 

204 

Other income

109 

24 

114 

247 

______________________________________________________________________________________

Income before income taxes

$       6,702 

$          495 

$           379 

$         7,576 

====================================================================================

Six Months Ended June 30, 2001

______________________________________________________________________________________

Sales

$     56,706 

$      5,737 

$        2,341 

$      64,784 

Intercompany sales

(1,998)

(1,998)

______________________________________________________________________________________

Total net sales

$     54,708 

$      5,737 

$        2,341 

$      62,786 

=====================================================================================

Operating income

$       4,783 

$         615 

$           388 

$        5,786 

Royalty income

1,192 

1,192 

Interest -- net

531 

96 

627 

Other income

14 

25 

7 

46 

______________________________________________________________________________________

Income before income taxes

$      6,520 

$         736 

$           395 

$        7,651 

====================================================================================

5.

For the three and six months ended June 30, 2002 and 2001, comprehensive income totaled $3,298, $2,482, $4,888 and $4,561, respectively. Comprehensive income includes all changes to shareholders' equity, except those resulting from investments by owners and distributions to owners. Comprehensive income includes net income, foreign currency translation gains or losses, unrealized appreciation (depreciation) on marketable securities and pension liability adjustments.

6.

Shareholders' equity:

June 30,

December 31,

2002 

2001 

______________________________________________________________________________________

Common stock

$          22,999 

$          22,999 

Additional paid-in capital

23,197 

23,197 

Retained earnings

93,554 

89,226 

Accumulated other comprehensive loss

(3,706)

(4,266)

______________________________________________________________________________________

Total

136,044 

131,156 

Less treasury stock, at cost

5 

5 

______________________________________________________________________________________

Total shareholders' equity

$        136,039 

$       131,151 

======================================================================================

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

Liquidity and Capital Resources

The Company generated net cash flow from operations of $5,181,000 and $16,515,000 for the six months ended June 30, 2002 and 2001, respectively. The decrease in net cash flow from operations compared to the corresponding period of the prior year is primarily the result of an increase in the level of accounts receivable related to higher net sales resulting primarily from the introduction of the new Wittnauer brand product line and the Harley Davidson licensed product, an increase in inventory purchases and a decrease in accounts payable, partially offset by an increase in accrued expenses and a change in the timing of payments related to income taxes.

The Company expects that existing cash balances and cash flow from operations will be sufficient to fund anticipated working capital requirements.

The Company's short-term investments consist of U.S. Treasury bills and the long-term investments consist of U.S. Treasury notes.

Results of Operations

Net sales increased $10,126,000 and $9,532,000 for the three and six months ended June 30, 2002, respectively, as compared to the prior year. Income before taxes increased $1,245,000 and decreased $75,000 for the three and six months ended June 30, 2002, respectively, as compared to the prior year. The increase in net sales is primarily attributable to the Wittnauer watch brand, which was acquired during the third quarter of 2001, sales of the Harley Davidson licensed product associated with the license agreement signed in May 2001, and an increase in clock unit volume sales of 41.5% as compared to the prior year. These increases were partially offset by a unit volume decrease of the Company's Bulova and Caravelle watch brands of 8.4% and 3.7% for the six month period ended June 2002 compared to the prior year, respectively.

The Company's overall gross margins are primarily affected by three major factors: sales mix, product pricing strategy and efficient procurement practices. Gross profit as a percentage of net sales for the three and six months ended June 30, 2002, was 52.9% and 52.6%, respectively, as compared to 51.5% and 53.0% for the prior year. This variance is attributable to style/sales mix within the brands.

The Company's operating expenses as a percentage of net sales for the three and six months ended June 30, 2002 was 42.6% and 44.0% as compared to 43.8% and 43.8% for the corresponding prior year periods. The variance is primarily due to the increase in overhead operating expenses associated with the Company's recent acquisitions and brand extensions.

Interest -- net decreased by $232,000 and $423,000 for the three and six months ended June 30, 2002, respectively, as compared to 2001 due primarily to a lower level of invested assets at June 30, 2002 as compared to June 30, 2001, as well as lower interest rates.

Foreign Currency

The Company imports most of its watch and clock products. During the first six months of 2002, approximately 3% of the Company's purchases were denominated in Japanese yen. The remaining purchases were primarily denominated in U.S. dollars for product acquired from vendors located in Europe, Hong Kong and other Asian countries. The Hong Kong dollar is pegged to the U.S. dollar and has not been subject to the fluctuations that have affected other Asian currencies. In the event that the peg between the two currencies is removed, currency fluctuations could have a material impact on the cost of those imported products which ultimately could have a negative impact on the Company's gross profit, operating income and cash flow. Foreign currency fluctuations have not had a material impact on results of operations for the three and six months ended June 30, 2002 and 2001. Future foreign currency fluctuations, however, could impact gross profit, income and cash flow.

Accounting Standards

In June 2001, the FASB issued SFAS No. 143, "Accounting for Asset Retirement Obligations." SFAS No. 143 applies to the accounting and reporting obligations associated with the retirement of tangible long-lived assets and the associated asset retirement costs. This statement applies to legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and the normal operation of long-lived assets, except for certain obligations of lessees. Adoption of this standard is required for fiscal years beginning after June 15, 2002. Adoption of this standard will not have a material impact on the Company's results of operations or financial position.

Forward-Looking Statements

When included in this Report, the words "believes," "expects," "intends," "anticipates," "estimates" and analogous expressions are intended to identify forward-looking statements. Such statements inherently are subject to a variety of risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include, among others, general economic and business conditions, changes in financial markets, significant changes in consumer spending patterns, competition in the Company's product areas, changes in foreign currency valuations in relation to the U.S. dollar, changes in foreign, political, social and economic conditions, the Company's ability to renew or find new licensees or distributors to replace those terminating in 2001, and various other matters, many of which are beyond the Company's control. These forward-looking statements speak only as of the date of this report. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any statement is based.

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

   (a)  Exhibits --

          None

   (b)  Current reports on Form 8-K -- There were no reports on Form 8-K filed for the three months           ended June 30, 2002.

                                                                    SIGNATURES

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

BULOVA CORPORATION

_____________________

(Registrant)

Dated:  August 13, 2002

By:

               /s/ John T. O'Reilly

___________________________

              JOHN T. O'REILLY

            Chief Financial Officer

           (Duly authorized officer)