<ARTICLE> 5 <LEGEND> </LEGEND> <CIK> 0000909724 <NAME> THE LEATHER FACTORY, INC. <MULTIPLIER> 1 <CURRENCY> US DOLLARS <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-START> JAN-01-1997 <PERIOD-END> DEC-31-1997 <EXCHANGE-RATE> 1 <CASH> 70,496 <SECURITIES> 0 <RECEIVABLES> 1,893,276 <ALLOWANCES> 28,000 <INVENTORY> 7,279,702 <CURRENT-ASSETS> 10,315,187 <PP&E> 2,534,839 <DEPRECIATION> 1,505,098 <TOTAL-ASSETS> 17,024,549 <CURRENT-LIABILITIES> 6,152,564 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 23,648 <OTHER-SE> 8,108,998 <TOTAL-LIABILITY-AND-EQUITY> 17,024,549 <SALES> 25,399,116 <TOTAL-REVENUES> 25,399,116 <CGS> 14,844,376 <TOTAL-COSTS> 14,844,376 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 867,548 <INCOME-PRETAX> 301,524 <INCOME-TAX> 231,232 <INCOME-CONTINUING> 70,292 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 70,292 <EPS-PRIMARY> 0.01 <EPS-DILUTED> 0.01