<ARTICLE> 5 <LEGEND> </LEGEND> <CIK> 0000909724 <NAME> The Leather Factory, Inc. <MULTIPLIER> 1 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-2000 <PERIOD-START> jan-01-2000 <PERIOD-END> MAR-31-2000 <CASH> 392,554 <SECURITIES> 0 <RECEIVABLES> 2,289,263 <ALLOWANCES> 150,000 <INVENTORY> 8,211,813 <CURRENT-ASSETS> 11,644,596 <PP&E> 3,174,554 <DEPRECIATION> 2,245,712 <TOTAL-ASSETS> 17,492,447 <CURRENT-LIABILITIES> 8,226,748 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 23,696 <OTHER-SE> 9,053,715 <TOTAL-LIABILITY-AND-EQUITY> 17,492,447 <SALES> 7,405,557 <TOTAL-REVENUES> 7,405,557 <CGS> 3,834,966 <TOTAL-COSTS> 3,834,966 <OTHER-EXPENSES> 2,778,389 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 169,195 <INCOME-PRETAX> 617,665 <INCOME-TAX> 233,723 <INCOME-CONTINUING> 383,942 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 383,942 <EPS-BASIC> 0.04 <EPS-DILUTED> 0.04