<ARTICLE> 5 <CIK> 0000909724 <NAME> THE LEATHER FACTORY INC. <MULTIPLIER> 1 <PERIOD-TYPE> 6-MOS <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-START> JAN-01-1997 <PERIOD-END> JUN-30-1997 <CASH> 299,652 <SECURITIES> 0 <RECEIVABLES> 2,400,701 <ALLOWANCES> 48,000 <INVENTORY> 7,267,265 <CURRENT-ASSETS> 10,945,900 <PP&E> 2,842,318 <DEPRECIATION> 1,421,079 <TOTAL-ASSETS> 17,772,100 <CURRENT-LIABILITIES> 9,482,396 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 23,648 <OTHER-SE> 8,047,739 <TOTAL-LIABILITY-AND-EQUITY> 17,772,100 <SALES> 12,986,884 <TOTAL-REVENUES> 12,986,884 <CGS> 7,683,789 <TOTAL-COSTS> 7,683,789 <OTHER-EXPENSES> 4,701,755 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 418,767 <INCOME-PRETAX> 179,285 <INCOME-TAX> 127,612 <INCOME-CONTINUING> 51,673 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 51,673 <EPS-PRIMARY> 0 <EPS-DILUTED> 0