SECURITIES AND EXCHANGE COMMISSION
                                   
                          WASHINGTON DC 20549
                                   
                               FORM 10-Q
                                   
           QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
                OF THE SECURITIES EXCHANGE ACT OF 1934
                                   
                                   
  For Quarterly Period Ended May 3, 1997 COMMISSION FILE NO. 0-17870


                            LECHTERS, INC.


        (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

                NEW JERSEY                   No. 13-2821526
STATE OR OTHER JURISDICTION OF               (I.R.S. EMPLOYER
INCORPORATION                                IDENTIFICATION NO.)

  1 Cape May Street, Harrison, NEW JERSEY    07029
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)     (ZIP CODE)

Registrant's telephone number, including area code:    (201) 481-1100


Indicate  by  check  mark whether the Registrant  (1)  has  filed  all
reports required to be filed by Section 13 or 15 (d) of the Securities
Exchange Act of 1934 during the preceding 12 months, and (2) has  been
subject to such filing requirements for the past 90 days.



                        YES  X  NO  


The  number  of shares of the Registrant's common stock,  without  par
value, outstanding at
June 16, 1997: 17,155,086:

                    LECHTERS, INC. AND SUBSIDIARIES
                               FORM 10-Q
                     FOR QUARTER ENDED May 3, 1997
                                 INDEX


                                                              Page No.

PART I.   Financial Information

       Item 1. Financial Statements

               Consolidated Balance Sheets
               May 3, 1997 and February 1, 1997                  1

               Consolidated Statements of Income
               for the Thirteen Weeks Ended
               May 3, 1997 and May 4, 1996                          2
   
               Consolidated Statements of Cash Flows
               for the Thirteen Weeks Ended
               May 3, 1997 and May 4, 1996                          3
    
   
               Consolidated Statement of Shareholders'
               Equity for the Thirteen Weeks Ended
               May 3, 1997                                          4
    
               Notes to Consolidated Financial Statements          5-7

<PAGE>    3
                      LECHTERS, INC. AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEETS
                                     
             (Amounts in thousands, except share and per share
                                 amounts)
           <TABLE>                                     
           <CAPTION>
                                            May 3,     February
                                              1997        1,
                                                          1997
           <S>                             <C>         <C>
                    A S S E T S            (unaudite       
                                              d)
           Current Assets:                             
           Cash and Cash Equivalents       $ 12,110    $
                                                       7,022
           Marketable Securities           42,263      54,084
           Accounts Receivable             8,240       5,561
           Merchandise Inventories         114,384     100,442
           Prepaid Expenses                            
                                           5,985       5,734
                                                       
           Total Current Assets            182,982     172,843
           Property and Equipment:                     
           Fixtures and Equipment          67,596      66,828
           Leasehold Improvements           103,194     102,912
                                           170,790     169,740
           Less Accumulated Depreciation      78,117      74,356
           & Amortization
           Net Property and Equipment        92,673    95,384
           Other Assets                                
                                           6,142       4,106
           Total Assets                    $281,797    $272,333
                                                       
           LIABILITIES AND SHAREHOLDERS'               
                       EQUITY
           Current Liabilities                         
           Accounts Payable                $ 16,360    $  3,264
           Dividends Payable - Preferred   -           1,010
           Stock
           Salaries, Wages and Other       15,874      13,318
           Accrued Expenses
           Taxes, Other Than Income Taxes  2,094       1,318
           Income Taxes Payable                        
                                           250         1,979
                                                       
           Total Current Liabilities          34,578      20,889
           Long-Term Debt                              
           5% Convertible Subordinated                 
           Debentures                                  
              due September 27, 2001 (Net              
           of Unamortized                  59,132      58,853
              Discount of $5,868 and
           $6,147, respectively)
           Total Long-Term Debt              59,132      58,853
                                                       
           Deferred Income Taxes and       22,393      22,183
           Other Deferred Credits
           Shareholders' Equity:                       
           Convertible Preferred Stock,                
           $100 Par Value
              Authorized 1,000,000                     
           Shares,
              Issued and Outstanding -                 
           Series A - 149,999
              Shares; Series B - 50,001    20,000      20,000
           Shares
           Common Stock, No Par Value,                 
              Authorized 50,000,000                    
           Shares,
              Issued and Outstanding       58          58
           17,155,086
           Unrealized Holding Loss on                  
           Available
              for Sales Securities         (60)        (29)
           Additional Paid-In Capital      62,273      62,273
           Retained Earnings                           
                                           83,423      88,106
           Total Shareholders' Equity        165,694     170,408
           Total Liabilities and           $281,797    $272,333
           Shareholders' Equity
           </TABLE>                                    
           See accompanying notes to consolidated financial
           statements.
                                 - 1 -
<PAGE>    4
                   LECHTERS, INC. AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF INCOME
      (Amounts in thousands, except share and per share amounts)
       
    <TABLE>
    <CAPTION>
                                            Thirteen Weeks Ended
                                             May 3,      May 4,
                                               1997        1996
    <S>                                    <C>         <C>
    Net Sales                              $ 85,129    $ 84,992
                                                       
    Cost of Goods Sold (including                      
       occupancy and indirect costs)       65,152      64,378
                                                       
        Gross Profit                       19,977      20,614
                                                       
    Selling, General and                               
       Administrative Expenses             27,491      25,508
                                                       
    Operating Loss                         (7,514)     (4,894)
                                                       
    Other Expenses (Income):                           
    Interest Expense                       1,146       1,556
                                                       
    Interest Income                        (688)       (476)
                                                       
    (Gain) Loss on Sale of Government                  
       Securities                                      
                                           (34)        3
                                                       
    Total Other Expenses                         424       1,083
                                                       
    Loss Before Income Taxes               (7,938)     (5,977)
                                                       
    Income Tax Benefit                      (3,255)      (2,451)
                                                       
    Net Loss                               (4,683)     (3,526)
                                                       
    Preferred Stock Dividend Requirement         252   
                                                       84
                                                       
    Net Loss Applicable to Common          ($ 4,935)   ($3,610)
    Shareholders
                                                       
    Net Loss Per Common Share               ($0.29)     ($0.21)
                                                       
    Weighted Average Shares Outstanding    17,155,000  17,155,000
    </TABLE>
        
    See accompanying notes to consolidated financial statements.
                                   
                                 - 2 -
<PAGE>    5
                   LECHTERS, INC. AND SUBSIDIARIES
                                   
                CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   
                        (Amounts in thousands)
      <TABLE>                          
      <CAPTION>
                                          Thirteen Weeks Ended
                                          May 3,       May 4,
                                            1997         1996
                                              (unaudited)
      <S>                              <C>          <C>
      Cash Flows From Operating                     
      Activities:
      Net (Loss)                       ($4,683)     ($3,526)
      Adjustments to Reconcile Net                  
      Loss to Net
         Cash (Used In) Provided By
      Operating Activities:
      Depreciation and Amortization    4,275        4,136
      Other                            443          136
      Changes in Assets and                         
      Liabilities:
      Increase in Accounts Receivable  (2,679)      (2,388)
      Increase in Merchandise          (13,942)     (10,144)
      Inventories
      Increase in Prepaid Expenses     (251)        (2,872)
      Increase in Accounts Payable,                 
         Accrued Expenses and Taxes                 
      Other                            16,428       10,443
           Than Income Taxes
      Decrease in Income Taxes         (1,729)      (322)
      Payable
      Increase in Other Assets                             (364)
                                       (1,721)
                                                    
      Net Cash Used In Operating       (3,859)      (4,901)
      Activities
                                                    
      Cash Flows From Investing                     
      Activities:
      Capital Expenditures             (1,812)      (1,905)
      Decrease in Available for Sale                
         Securities                     11,769       14,531
                                                    
      Net Cash Provided By Investing   9,957        12,626
      Activities
                                                    
      Cash Flows From Financing                     
      Activities:
      Issuance of Preferred Stock      -            20,000
      Payment of Senior Notes Payable  -            (17,625)
      Payment of Preferred Stock       (1,010)      
      Dividend                                      -
                                                    
      Net Cash (Used In) Provided by                
      Financing                        (1,010)      2,375
        Activities
                                                    
      Net Increase in Cash and Cash    5,088        10,100
      Equivalents
      Cash and Cash Equivalents,                    
      Beginning of                     7,022        4,234
         Period
                                                    
      Cash and Cash Equivalents, End   $12,110      $14,334
      of Period
                                                    
      Supplemental Disclosure of Cash               
      Flows
        Information:                                
                                                    
      Non Cash Investing Activities:                
                                                    
      Unrealized Holding Loss                       
      Adjustment                       ($      53)  ($    263)
        on Available for Sale
      Securities
      Cash Paid During the Period                   
      for:
      Interest                         $      84    $ 1,074
                                                    
      Income Taxes                     $ 1,694      $    322
      </TABLE>
      
      See accompanying notes to consolidated financial
      statements.
                                 - 3 -
<PAGE>    6
                     LECHTERS, INC. AND SUBSIDIARIES
                                    
             CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
                                    
                         (Amounts in thousands)
<TABLE>                                                              
<CAPTION>
                  Common   Preferre Addition            Unrealiz     
                  Stock       d        al     Retained     ed        
                   Issued   Stock    Paid-In  Earnings  Holding    Total
                             Issued  Capital              Gain
                                                         (Loss)
<S>              <C>       <C>      <C>       <C>       <C>      <C>
Balance,         $58       $20,000  $62,273   $88,106   ($29)    $170,408
February 1, 1997
                                                                 
Net Loss -                                                       
Thirteen Weeks   --        --       --        (4,683)   --       (4,683)
   Ended May 3,
1997
                                                                 
Unrealized                                                       
Holding Loss        --                                    (31)   
   Adjustment              --       --        --                 (31)
                                                                 
Balance, May 3,                                                  
1997             $58       $20,000  $62,273   $83,423   ($60)    $165,694
   (unaudited)

</TABLE>

See accompanying notes to consolidated financial statements.

                                   
                                 - 4 -

<PAGE>    7
                    LECHTERS, INC. AND SUBSIDIARIES

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                              (UNAUDITED)

1.   GENERAL

     The accompanying unaudited Consolidated Financial Statements have
     been prepared in accordance with the instructions for Form 10-Q
     and do not include all the information and footnotes required by
     generally accepted accounting principles for complete financial
     statements.  In the opinion of management, all adjustments
     (consisting of normal recurring accruals) considered necessary
     for a fair presentation for interim periods have been included.

     The Company's results of operations for the thirteen weeks ended
     May 3, 1997 are not necessarily indicative of the operating
     results for the full year.

     Certain reclassifications have been made to the financial
     statements of the prior year to conform with the classifications
     used for Fiscal 1997.

2.   NET LOSS PER SHARE

     Net loss per share data were computed by dividing net loss,
     reduced by the Convertible Preferred Stock Dividend requirement,
     by the weighted average number of common shares outstanding
     during the thirteen weeks ended May 3, 1997 and May 4, 1996.
     Stock options, which are common stock equivalents, were excluded
     from the weighted average of outstanding shares because inclusion
     would reduce the loss per share.  The Company's 5% Convertible
     Subordinated Debentures issued in September 1991 did not qualify
     as a common stock equivalent at the time of issue and were not
     included in the calculation of primary net loss per share for the
     periods ended May 3, 1997 and May 4, 1996.  The Company's
     Convertible Preferred Stock issued on April 5, 1996 also did not
     qualify as a common stock equivalent at the time of issue and was
     not included in the calculation of primary net loss per share for
     the periods ended May 3, 1997 and May 4, 1996.  For the purpose
     of computing fully diluted net loss per share, the assumed
     conversion of such debentures would have an anti-dilutive effect
     on the thirteen weeks ended May 3, 1997 and May 4, 1996.  With
     respect to the Convertible Preferred Stock, conversion of such
     preferred stock would have an anti-dilutive effect on fully
     diluted loss per share for the thirteen weeks ended May 3, 1997
     and May 4, 1996.

3.  RECENT ACCOUNTING PRONOUNCEMENTS

    Recent Accounting Pronouncements - In February 1997, the
    Financial Accounting Standards Board issued Statement of
    Financial Accounting Standards (SFAS) No. 128, "Earning per
    Share."  The statement is effective for financial statements for
    periods ending after December 15, 1997, and changes the method in
    which net income will be determined.  Adoption of this statement
    by the Company will not have a material impact on net income per
    share.


                                 - 5 -

<PAGE>    8

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

RESULTS OF OPERATIONS

THIRTEEN WEEKS ENDED MAY 3, 1997 IN COMPARISON WITH THIRTEEN WEEKS
ENDED MAY 4, 1996.

Net sales for the thirteen weeks ended May 3, 1997 increased $137,000
to $85,129,000, a 0.2% increase over $84,992,000 reported for the
comparable thirteen week period of the prior year.  The sales increase
was attributable to the increase in the number of stores open over the
prior year.  For the first quarter of Fiscal 1997, the Company's
comparable store sales decreased 1.3% versus the prior year.  Stores
open as of May 3, 1997 totaled 648 compared to a total of 641 stores
open at May 4, 1996.

Gross Profit for the quarter decreased $637,000 to $19,977,000 and was
23.5% as a percent of net sales which was 0.8 percentage points below
the gross profit rate of the prior year.  The decrease in gross margin
was primarily attributable to the under-absorption of occupancy
expenses given the decline of comparable store sales.

Selling, general and administrative expenses totaled $27,491,000, an
increase of $1,983,000 over the prior year.  At 32.3% as a percent of
net sales, the expense rate for the first quarter was 2.3 percentage
points higher than the rate for first quarter of Fiscal 1996.  The
increase in selling, general and administrative expenses was due to
the increased operating expenses associated with seven net new stores,
additional advertising expenditures and asset write-offs associated
with store closings.

Other Expenses for the quarter were $424,000, a $659,000 decrease from
the comparable period of the prior year. As a percent of sales, other
expenses declined 0.8% to 0.5%.  The decrease was attributable to the
lower interest expense due to the repayment of $17,625,000 of Senior
Notes Payable in April 1996 and higher current quarter interest income
which was the result of higher balances of invested cash and
marketable securities coupled with higher market interest rates.














                                 - 6 -


                                   
<PAGE>    9

LIQUIDITY AND CAPITAL RESOURCES

Cash and cash equivalents increased $5,088,000 during the first
quarter of Fiscal 1997.  Operating activities as reflected on the
Statements of Cash Flows were comprised of the net loss adjusted for
non-cash expenses such as depreciation and amortization and by changes
in operating assets.  Operating activities utilized $3,859,000 of cash
during the first quarter of Fiscal 1997. Significant components of
operating activities for the first quarter included the net loss of
$4,683,000, depreciation and amortization of $4,275,000, an increase
in merchandise inventories of $13,942,000 and a $16,428,000 increase
in current liabilities, specifically accounts payable, accrued
expenses and taxes.  The inventory and accounts payable increases were
normal as the Company builds its inventory from its low year end
levels.  Due to inventory management programs instituted during Fiscal
1996, inventory levels at February 1, 1997 were significantly lower
resulting in the higher change in this asset compared to the same
period of the prior year although total merchandise inventories were
$5,658,000 lower at May 3, 1997 than at May 4, 1996.  Investing
activities produced $9,957,000 in cash.  Capital expenditures,
primarily for the construction of and fixtures for new stores, used
$1,812,000 of cash while the decrease in available for sale securities
provided $11,769,000 of cash.  Financing activities utilized
$1,010,000 of cash as the Company paid its initial dividend on  the
convertible preferred stock issued in April 1996.























                                 - 7 -
<PAGE>    10
                                   
                                   
                                   
Item 6 -  Exhibits and Reports on Form 8-K

      None

                              SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.



                              LECHTERS, INC.



                              By:  /s/ John W. Smolak
                                   John W. Smolak
                                   Senior Vice President and
                                   Chief Financial Officer



Date:  June 16, 1997



















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