<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF REEDS JEWELERS, INC. FOR THE QUARTER ENDED AUGUST 31,
1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          FEB-28-1999
<PERIOD-START>                             MAR-01-1998
<PERIOD-END>                               AUG-31-1998
<CASH>                                              43
<SECURITIES>                                         0
<RECEIVABLES>                                   41,794
<ALLOWANCES>                                     3,197
<INVENTORY>                                     40,876
<CURRENT-ASSETS>                                82,941
<PP&E>                                          29,487
<DEPRECIATION>                                  17,220
<TOTAL-ASSETS>                                 102,580
<CURRENT-LIABILITIES>                           18,832
<BONDS>                                         45,000
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                           846
<OTHER-SE>                                      35,184
<TOTAL-LIABILITY-AND-EQUITY>                   102,580
<SALES>                                         41,483
<TOTAL-REVENUES>                                48,299
<CGS>                                           27,059
<TOTAL-COSTS>                                   27,059
<OTHER-EXPENSES>                                17,627
<LOSS-PROVISION>                                 1,714
<INTEREST-EXPENSE>                               1,769
<INCOME-PRETAX>                                    130
<INCOME-TAX>                                        43
<INCOME-CONTINUING>                                 87
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                        87
<EPS-PRIMARY>                                     0.01
<EPS-DILUTED>                                     0.01