<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF REEDS JEWELERS, INC. FOR THE THREE MONTHS ENDED MAY 31,
1996, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          FEB-28-1997
<PERIOD-START>                             MAR-01-1996
<PERIOD-END>                               MAY-31-1996
<CASH>                                             151
<SECURITIES>                                         0
<RECEIVABLES>                                   38,228
<ALLOWANCES>                                     2,839
<INVENTORY>                                     35,478
<CURRENT-ASSETS>                                74,201
<PP&E>                                          25,495
<DEPRECIATION>                                  15,409
<TOTAL-ASSETS>                                  92,593
<CURRENT-LIABILITIES>                           17,424
<BONDS>                                         42,501
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                           422
<OTHER-SE>                                      28,955
<TOTAL-LIABILITY-AND-EQUITY>                    92,593
<SALES>                                         20,701
<TOTAL-REVENUES>                                23,154
<CGS>                                           12,490
<TOTAL-COSTS>                                   12,490
<OTHER-EXPENSES>                                 8,764
<LOSS-PROVISION>                                   680
<INTEREST-EXPENSE>                                 868
<INCOME-PRETAX>                                    352
<INCOME-TAX>                                       116
<INCOME-CONTINUING>                                236
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                       236
<EPS-PRIMARY>                                      .06
<EPS-DILUTED>                                      .06