<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATMENTS OF REEDS JEWELERS, INC. FOR THE THREE MONTHS ENDED MAY 31, 1995, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> FEB-29-1996 <PERIOD-START> MAR-01-1995 <PERIOD-END> MAY-31-1995 <CASH> 255 <SECURITIES> 0 <RECEIVABLES> 36,809 <ALLOWANCES> 2,777 <INVENTORY> 31,281 <CURRENT-ASSETS> 68,378 <PP&E> 21,566 <DEPRECIATION> 11,630 <TOTAL-ASSETS> 81,060 <CURRENT-LIABILITIES> 17,724 <BONDS> 34,006 <COMMON> 382 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <OTHER-SE> 25,826 <TOTAL-LIABILITY-AND-EQUITY> 81,060 <SALES> 17,145 <TOTAL-REVENUES> 19,516 <CGS> 10,153 <TOTAL-COSTS> 10,153 <OTHER-EXPENSES> 7,380 <LOSS-PROVISION> 581 <INTEREST-EXPENSE> 832 <INCOME-PRETAX> 570 <INCOME-TAX> 188 <INCOME-CONTINUING> 382 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 382 <EPS-PRIMARY> .10 <EPS-DILUTED> .10