<ARTICLE> 5 <LEGEND> </LEGEND> <CIK> 0000909724 <NAME> THE LEATHER FACTORY, INC. <MULTIPLIER> 1 <CURRENCY> US DOLLARS <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1999 <PERIOD-START> JAN-01-1999 <PERIOD-END> MAR-31-1999 <EXCHANGE-RATE> 1 <CASH> 597,405 <SECURITIES> 0 <RECEIVABLES> 1,616,142 <ALLOWANCES> 76,000 <INVENTORY> 7,021,185 <CURRENT-ASSETS> 10,038,628 <PP&E> 2,911,927 <DEPRECIATION> 1,892,630 <TOTAL-ASSETS> 16,234,978 <CURRENT-LIABILITIES> 7,841,382 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 23,648 <OTHER-SE> 8,064,955 <TOTAL-LIABILITY-AND-EQUITY> 16,234,978 <SALES> 5,513,000 <TOTAL-REVENUES> 5,513,000 <CGS> 3,154,110 <TOTAL-COSTS> 3,154,110 <OTHER-EXPENSES> 2,238,516 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 229,867 <INCOME-PRETAX> (110,176) <INCOME-TAX> (17,985) <INCOME-CONTINUING> (92,191) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (92,191) <EPS-PRIMARY> (0.01) <EPS-DILUTED> (0.01)