<ARTICLE> 5 <LEGEND> THE LEGEND CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE HANOVER DIRECT, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS AND STATEMENTS OF INCOME FOR THE TWENTY-SIX WEEKS ENDED JUNE 27, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> JUN-27-1998 <PERIOD-END> JUN-27-1998 <CASH> 3,246 <SECURITIES> 0 <RECEIVABLES> 19,364 <ALLOWANCES> (2,522) <INVENTORY> 74,697 <CURRENT-ASSETS> 147,763 <PP&E> 85,610 <DEPRECIATION> (33,315) <TOTAL-ASSETS> 231,793 <CURRENT-LIABILITIES> 87,992 <BONDS> 55,098 <PREFERRED-MANDATORY> 6,033 <PREFERRED> 0 <COMMON> 136,676 <OTHER-SE> (74,996) <TOTAL-LIABILITY-AND-EQUITY> 231,793 <SALES> 259,097 <TOTAL-REVENUES> 259,097 <CGS> 162,360 <TOTAL-COSTS> 264,428 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 1,734 <INTEREST-EXPENSE> 3,677 <INCOME-PRETAX> (9,008) <INCOME-TAX> 500 <INCOME-CONTINUING> (9,508) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (9,508) <EPS-PRIMARY> (.05) <EPS-DILUTED> (.05)