<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM GRACO INC.
AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS AND CONSOLIDATED BALANCE
SHEETS FOR THE QUARTERLY PERIOD ENDING SEPTEMBER 29, 1995 AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000042888
<NAME> GRACO INC.
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-27-1996
<PERIOD-END>                               MAR-29-1996
<CASH>                                           2,103
<SECURITIES>                                         0
<RECEIVABLES>                                   72,211
<ALLOWANCES>                                     4,977
<INVENTORY>                                     44,915
<CURRENT-ASSETS>                               132,572
<PP&E>                                         160,162
<DEPRECIATION>                                  82,152
<TOTAL-ASSETS>                                 223,224
<CURRENT-LIABILITIES>                           71,647
<BONDS>                                         11,960
<COMMON>                                        17,414
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<OTHER-SE>                                      91,485
<TOTAL-LIABILITY-AND-EQUITY>                   223,224
<SALES>                                         90,153
<TOTAL-REVENUES>                                90,153
<CGS>                                           45,316
<TOTAL-COSTS>                                   45,316
<OTHER-EXPENSES>                                36,552
<LOSS-PROVISION>                                  (131)
<INTEREST-EXPENSE>                                 232
<INCOME-PRETAX>                                  8,285
<INCOME-TAX>                                     2,700
<INCOME-CONTINUING>                              5,585
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     5,585
<EPS-PRIMARY>                                      .32
<EPS-DILUTED>                                      .32