<ARTICLE> 5 <CIK> 0000909724 <NAME> THE LEATHER FACTORY, INC. <MULTIPLIER> 1 <CURRENCY> US DOLLARS <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-START> JAN-01-1997 <PERIOD-END> SEP-30-1997 <EXCHANGE-RATE> 1 <CASH> 486,114 <SECURITIES> 0 <RECEIVABLES> 2,375,154 <ALLOWANCES> 83,000 <INVENTORY> 7,468,535 <CURRENT-ASSETS> 11,146,836 <PP&E> 2,846,288 <DEPRECIATION> 1,483,016 <TOTAL-ASSETS> 17,859,923 <CURRENT-LIABILITIES> 9,492,592 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 23,648 <OTHER-SE> 8,141,087 <TOTAL-LIABILITY-AND-EQUITY> 17,859,923 <SALES> 19,340,466 <TOTAL-REVENUES> 19,340,466 <CGS> 11,343,380 <TOTAL-COSTS> 11,343,380 <OTHER-EXPENSES> 6,995,461 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 633,638 <INCOME-PRETAX> 382,348 <INCOME-TAX> 238,236 <INCOME-CONTINUING> 144,112 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 144,112 <EPS-PRIMARY> 0.01 <EPS-DILUTED> 0.01