<ARTICLE> 5 <LEGEND> THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE HANOVER DIRECT, INC AND SUBSIDIARIES CONDENSED CONSOLIDTAED BALANCE SHEETS AND STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED MARCH 29, 1997 AND IS QUALIFIED IN ITS ENTIRETY, EXCEPT FOR GROSS ACCOUNTS RECEIVABLE AND THE ALLOWANCE FOR DOUBTFUL ACCOUNTS, BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-27-1997 <PERIOD-END> MAR-29-1997 <CASH> 1,510 <SECURITIES> 0 <RECEIVABLES> 14,984 <ALLOWANCES> (5,239) <INVENTORY> 63,852 <CURRENT-ASSETS> 138,098 <PP&E> 74,785 <DEPRECIATION> (24,126) <TOTAL-ASSETS> 223,334 <CURRENT-LIABILITIES> 134,444 <BONDS> 61,973 <PREFERRED-MANDATORY> 5,795 <PREFERRED> 0 <COMMON> 96,693 <OTHER-SE> (4,227) <TOTAL-LIABILITY-AND-EQUITY> 223,334 <SALES> 129,725 <TOTAL-REVENUES> 129,725 <CGS> 86,062 <TOTAL-COSTS> 134,064 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 2,034 <INCOME-PRETAX> (248) <INCOME-TAX> 0 <INCOME-CONTINUING> (6,621) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (6,621) <EPS-PRIMARY> (0.05) <EPS-DILUTED> (0.05)