<ARTICLE>                     5
<LEGEND>
     This schedule contains summary financial  information  extracted from Graco
     Inc. and subsidiaries consoldiated statements of earnings and consolidataed
     balance  sheets  for the  quarterly  period  ending  June  28,  1996 and is
     qualified in its entirety by reference to such financial statements.

</LEGEND>
<CIK>   0000042888                      
<NAME>  GRACO INC.                      
<MULTIPLIER>                                          1,000
<CURRENCY>                                     U.S. Dollars
       
                             
<PERIOD-TYPE>                   6-mos
<FISCAL-YEAR-END>                               Dec-27-1996
<PERIOD-START>                                  Mar-30-1996
<PERIOD-END>                                    Jun-28-1996
<EXCHANGE-RATE>                                           1
<CASH>                                                2,340
<SECURITIES>                                              0
<RECEIVABLES>                                        74,357
<ALLOWANCES>                                          5,036
<INVENTORY>                                          47,024
<CURRENT-ASSETS>                                    136,374
<PP&E>                                              165,026
<DEPRECIATION>                                       85,175
<TOTAL-ASSETS>                                      227,489
<CURRENT-LIABILITIES>                                71,535
<BONDS>                                              10,982
<PREFERRED-MANDATORY>                                     0
<PREFERRED>                                               0
<COMMON>                                             17,261
<OTHER-SE>                                           96,605
<TOTAL-LIABILITY-AND-EQUITY>                        227,489
<SALES>                                             187,252
<TOTAL-REVENUES>                                    187,252
<CGS>                                                92,993
<TOTAL-COSTS>                                        92,993
<OTHER-EXPENSES>                                     71,442
<LOSS-PROVISION>                                         67
<INTEREST-EXPENSE>                                      577
<INCOME-PRETAX>                                      22,817
<INCOME-TAX>                                          7,200
<INCOME-CONTINUING>                                  15,617
<DISCONTINUED>                                            0
<EXTRAORDINARY>                                           0
<CHANGES>                                                 0
<NET-INCOME>                                         15,617
<EPS-PRIMARY>                                           .89
<EPS-DILUTED>                                           .89