SECURITIES AND EXCHANGE COMMISSION
                                   
                          WASHINGTON DC 20549
                                   
                               FORM 10-Q
                                   
x          QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15  (d)  OF  THE
SECURITIES
     EXCHANGE ACT OF 1934
                                   
                For quarterly period ended May 2, 1998
                                   
                                  OR
                                   
     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
     SECURITIES EXCHANGE ACT OF 1934

                For the transition period from       To

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      07029-2404
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)     (ZIP CODE)

Registrant's telephone number, including area code:    (973) 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 8, 1998: 17,176,286:

                    LECHTERS, INC. AND SUBSIDIARIES
                               FORM 10-Q
                     FOR QUARTER ENDED MAY 2, 1998
                                 INDEX


                                                              PAGE NO.

PART I.   Financial Information

       Item 1. Financial Statements

               Consolidated Balance Sheets
               May 2, 1998 and January 31, 1998                  1

               Consolidated Statements of Income
               for the Thirteen Weeks Ended
               May 2, 1998 and May 3, 1997                          2
   
               Consolidated Statements of Cash Flows
               for the Thirteen Weeks Ended
               May 2, 1998 and May 3, 1997                          3
    
               Consolidated Statement of Shareholders'
               Equity for the Thirteen Weeks Ended
               May 2, 1998                                          4
    
               Notes to Consolidated Financial
               Statements                                          5-6

                  Item 2.
Management's Discussion and Analysis of
               Financial Condition and Results of Operations       7-8


PART II.       Other Information

       Item 6. Exhibits and Reports on Form 8K
9

----------------------------------------------------------------------
---------------------------------------------------------
Forward Looking Statements - All statements in this Report on Form 10-
Q,  including  those  incorporated herein by reference,  that  do  not
reflect historical information are forward looking statements made  in
reliance  upon the "safe harbor" provisions of the Private  Securities
Litigation  Reform Act of 1995.  Important factors  that  could  cause
actual  results  to  differ materially from those  discussed  in  such
forward   looking  statements  include,  but  are  not   limited   to,
competition,  economic downturns, dependence upon product development,
international business risks and seasonality of business.
----------------------------------------------------------------------
---------------------------------------------------------

<PAGE>    3
                    LECHTERS, INC. AND SUBSIDIARIES
                      CONSOLIDATED BALANCE SHEETS
                                   
      (Amounts in thousands, except share and per share amounts)
                                                           
    <TABLE>
                                                           
    <CAPTION>
                                         May 2,            January
                                           1998            31,
                                                              1998
    <S>                                  <C>               <C>
              A S S E T S                (unaud                
                                         ited)
    Current Assets:                                        
    Cash and Cash Equivalents            $                 $
                                         18,386            16,395
    Marketable Securities                64,541            74,747
    Accounts Receivable                  5,658             5,084
    Merchandise Inventories              110,12            99,034
                                         9
    Prepaid Expenses                                       
                                         4,279             2,145
                                                           
    Total Current Assets                 202,99            197,405
                                         3
    Property and Equipment:                                
    Fixtures and Equipment               58,396            58,841
    Leasehold Improvements               94,769             94,556
                                         153,16            153,397
                                         5
    Less Accumulated Depreciation &                        
    Amortization                         82,108            79,891
          Net Property and               71,057             73,506
    Equipment
    Other Assets                                           
                                         7,642             6,523
    Total Assets                         $281,6            $277,43
                                         92                4
                                                           
     LIABILITIES AND SHAREHOLDERS'                         
                EQUITY
    Current Liabilities                                    
    Accounts Payable                     $                 $
                                         17,075            10,127
    Dividends Payable - Preferred        --                1,010
    Stock
    Salaries, Wages and Other            20,849            18,102
    Accrued Expenses
    Taxes, Other Than Income Taxes       2,092             1,227
     Income Taxes Payable                                   2,941
                                         925
                                                           
    Total Current Liabilities                              
                                         40,941            33,407
    Long-term Debt                                         
    5% Convertible Subordinated                            
    Debentures due September 27,                           
    2001 (Net of Unamortized                               
    Discount of $4,702 and $4,999,       60,298            60,001
    respectively)
    Total Long-Term Debt                 60,298            
                                                           60,001
                                                           
    Deferred Income Taxes and Other      18,337            18,176
    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                              
       17,176,286 and 17,174,286,        58                58
    respectively
    Unrealized Holding (Loss) Gain                         
    on Available
       for Sale Securities               (20)              84
    Additional Paid-in Capital           62,380            62,370
    Retained Earnings                                      
                                         79,698            83,338
    Total Shareholders' Equity           162,11            
                                         6                 165,850
    Total Liabilities and                $281,6            $277,43
    Shareholders' Equity                 92                4
    </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 data)
                                                  
<TABLE>                                           
<CAPTION>                                         
                                             Thirteen Weeks
                                                Ended
                                       May 2,          May 3,
                                         1998            1997
                                               (unaud     
                                                ited)
<S>                                    <C>          	<C>
Net Sales                              $               $
                                       86,194          85,129
                                                       
Cost of Goods Sold (including                          
occupancy                                              65,152
   and indirect costs)                 64,536
                                                       
              Gross Profit             21,658          19,977
                                                       
Selling, General and Administrative                    27,491
Expenses                               28,286
                                                       
Operating Loss                         (6,628          (7,514
                                       )               )
                                                       
Other Expenses (Income):                               
   Interest Expense                    1,097           1,146
                                                       
   Interest Income                     (1,421          (688)
                                       )
                                                       
   Net Investment                                      
      (Gain/Income) Loss                               
                                       (141)           (34)
                                                       
Total Other Expenses (Income)                          
                                       (465)           424
                                                       
Loss Before Income Taxes               (6,163          (7,938
                                       )               )
                                                       
Income Tax Benefit                                     
                                       (2,523          (3,255
                                       )               )
                                                       
Net Loss                               (3,640          
                                       )               (4,683
                                                       )
                                                       
Preferred Stock Dividend Requirement                   
                                       252             252
                                                       
Net Loss Applicable to Common          ($3,89          ($4,93
Shareholders                           2)              5)
                                                       
Net Loss Per Common Share - Basic                      
                                       ($0.23          ($0.29
                                       )               )
                                                       
Net Loss Per Common Share - Diluted                    
                                       ($0.23          ($0.29
                                       )               )
                                                       
Weighted Average Common Shares         17,175          17,155
Outstanding - Basic                     ,000            ,000
                                                       
Weighted Average Common Shares         17,175          17,155
Outstanding - Diluted                   ,000            ,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 2,       May 3,
                                            1998         1997
                                              (unaudited)
      <S>                              <C>          <C>
      Cash Flows From Operating                     
      Activities:
      Net Loss                         ($3,640)     ($4,683)
                                                    
      Adjustments to Reconcile Net                  
      Loss to Net
         Cash Used In Operating
      Activities:
      Depreciation and Amortization    4,162        4,432
      Other                            287          440
                                                    
      Changes in Assets and                         
      Liabilities:
      Increase in Accounts Receivable  (574)        (2,679)
      Increase in Merchandise          (11,095)     (13,942)
      Inventories
      Increase in Prepaid Expenses     (2,134)      (251)
      Increase in Accounts Payable,                 
        Accrued Expenses and Taxes                  
      Other                            10,560       16,428
        Than Income Taxes
      Decrease in Income Taxes         (2,016)      (1,729)
      Payable
      Increase in Other Assets          (1,463)         (2,238)
                                                    
      Net Cash Used In Operating        (5,913)     (4,222)
      Activities
                                                    
      Cash Flows From Investing                     
      Activities:
      Capital Expenditures             (1,126)      (1,449)
      Decrease in Available for Sale                
         Securities                     10,030       11,769
                                                    
      Net Cash Provided by                          
         Investing Activities           8,904       10,320
                                                    
      Cash Flows From Financing                     
      Activities:
      Payment of Preferred Stock                        (1,010)
      Dividend                         (1,010)
      Exercise of Stock Options                10   
                                                    -
                                                    
      Net Cash Used In Financing                    
        Activities                       (1,000)    (1,010)
                                                    
      Net  Increase  in Cash and Cash  1,991        5,088
      Equivalents
                                                    
      Cash and Cash Equivalents,                    
      Beginning of                        16,395    7,022
        Period
                                                    
      Cash and Cash Equivalents, End   $  18,386    $ 12,110
      of Period
                                                    
      Supplemental Disclosure of Cash               
      Flows
        Information:                                
                                                    
                                                    
      Cash Paid During the Period                   
      for:
      Interest                         $            $        84
                                       -
                                                    
      Income Taxes                     $    2,017   $   1,694
      </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             (Loss)
                                                          Gain
<S>              <C>       <C>      <C>       <C>       <C>      <C>
Balance,                                                         
   January 31,   $58       $20,000  $62,370   $83,338   $ 84     $165,850
1998
                                                                 
Net Loss                                                         
Thirteen                                                         
  Weeks Ended    --        --       --        (3,640)   --       (3,640)
  May 2, 1998
                                                                 
Unrealized                                                       
  Holding Loss                                                   
  Adjustment        --                                           
                           --       --        --        (104)    (104)
                                                                 
Exercise of            -          -      10          -         -      10
Stock Options
                                                                 
Balance, May 2,                                                  
1998             $58       $20,000  $62,380   $ 79,698           $
   (unaudited)                                          ($20)    162,116
</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 2, 1998 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 1998.

2.   NET LOSS PER SHARE

     "Basic" 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 2, 1998 and May
     3, 1997.  With respect to "diluted" net loss per share, stock
     options which are potential common shares, were excluded from the
     weighted average of outstanding shares because inclusion would
     reduce the loss per share.  With respect to the Company's 5%
     Convertible Subordinated Debentures and the Company's Convertible
     Preferred Stock, for the purpose of computing diluted net loss
     per share, the assumed conversion of such debentures and such
     preferred stock would each have an anti-dilutive effect on
     diluted loss per share for the thirteen weeks ended May 2, 1998
     and
     May 3, 1997.






                                 - 5 -
     
     
     
     
     
     
     
     
     
     
     
<PAGE>    8

3.   RECENT ACCOUNTING PRONOUNCEMENTS

     In June, 1997, the Financial Accounting Standards Board issued
     Statement of Financial Accounting Standards (SFAS) No. 130,
     "Reporting Comprehensive Income."  As required by SFAS, No. 130,
     the following is a summary of the Company's comprehensive income
     for the first quarter of Fiscal 1998:
     
                                          Thirteen Weeks Ended
                                May 2,                May 3,
				1998                    1997

Net  Loss                                  ($ 3, 640)               ($
4, 683)

Components of
Comprehensive Income (Loss):

Unrealized Loss on Available For Sale Securities -
   Net of Applicable Income Tax Benefit
(104)                          (31)

Comprehensive (Loss) Income               ($3,744)            ($4,714)

     The Financial Accounting Standards Board issued SFAS No. 131,
"Disclosures about Segments of an Enterprise and Related Information",
effective for fiscal years beginning after December 15, 1997.  As
provided by SFAS No. 131, disclosures are not required for interim
periods of the initial year of application, but comparative
information will be reported in financial statements for interim
periods during the second year of application.
                                   
                                   








                                   
                                 - 6 -











<PAGE>    9

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

RESULTS OF OPERATIONS

THIRTEEN WEEKS ENDED MAY 2, 1998 IN COMPARISON WITH THIRTEEN WEEKS
ENDED MAY 3, 1997.

Net sales for the thirteen weeks ended May 2, 1998 increased
$1,065,000 to $86,194,000, a 1.3% increase from $85,129,000 reported
for the comparable thirteen week period of the prior fiscal year. The
increase was primarily attributable to additional advertising activity
by the Company in support of its Lechters Housewares stores.  For the
first quarter of Fiscal 1998, Lechters Housewares store sales
increased 3.0% while Famous Brands Housewares Outlet store sales
decreased 4.5%.  On a comparable store basis, sales for the Company
increased 3.2%.   Lechters Housewares comparable store sales
increased 5.7% while Famous Brands Housewares Outlet comparable store
sales decreased 4.8%.  During the first quarter of Fiscal 1998, the
Company opened three stores and closed fourteen stores, reducing the
stores in operation at May 2, 1998 to 615 from the 626 open of January
31, 1998.  At the close of the first quarter of Fiscal 1997, the
Company operated 648 stores.

Gross Profit for the first quarter increased $1,681,000 to
$21,658,000, 25.1% of sales which was 1.6 percentage points higher
than the 23.5% reported for the comparable thirteen week period of
Fiscal 1997.  The higher gross profit rate reflects an improved
merchandise mix in the Lechters Housewares stores partially offset by
the lower initial margins in Famous Brands Housewares Outlet stores
due to the increased proportion of off-price, special purchase
merchandise.  Reduced occupancy costs also contributed to the improved
gross profit performances as the Company operated, on average, 28
fewer stores in the first quarter of Fiscal 1998 compared to the
comparable thirteen week period of Fiscal 1997.

Selling, general and administrative expenses increased $795,000 to
$28,286,000.  At 32.8% of net sales the expense rate was 0.5
percentage points higher than the rate for the comparable period of
the prior fiscal year.  While store operating expenses declined due to
fewer stores in operation, expenses in the Service Office increased
primarily in the merchandise group in support of the Company's off-
price merchandise strategy and in the information technology group in
support of new initiatives including  Year 2000 compliance.

Other (Income)/Expense for the first quarter increased $889,000 to an
income of $465,000, 0.5% of sales compared to an expense of $424,000,
0.5% of sales, for the first quarter of the prior fiscal year.  The
increase was due to higher invested balances as well as higher market
rates and interest income received as part of federal income tax
refunds for prior fiscal years.




                                   
                                   
                                  -7-




<PAGE>    10

LIQUIDITY AND CAPITAL RESOURCES.

Cash, cash equivalents and marketable securities increased $28,554,000
over the balances at the close of the first quarter of Fiscal 1997.

Cash flow during the thirteen weeks ended May 2, 1998 as reflected on
the Statements of Cash Flows, was a net increase in cash and cash
equivalents of $1,991,000. Operating activities, comprised of the
operating loss of $3,640,000 adjusted for non-cash expenses such as
depreciation and amortization and by changes in operating assets,
utilized $5,913,000 of cash during Fiscal 1998 to date. Significant
components of operating activities for the first quarter included
depreciation and amortization which provided cash of $4,162,000,
merchandise inventories which increased using $11,095,000 of cash and
accounts payable, accrued expenses and taxes other than income taxes
which increased and provided cash of $10,560,000. The increases in
inventory and accounts payable were normal as the Company has
increased its inventories from their low year-end balances.  Total
merchandise inventories were $4,255,000 lower at May 2, 1998 than at
May 3, 1997.  Investing activities, capital expenditures and
reductions in marketable (available for sale) securities produced
$8,904,000 in cash.  Capital expenditures used $1,126,000 of cash
while the decrease in available for sale securities provided
$10,030,000 of cash.

Capital expenditures were primarily for construction of and fixtures
for new stores, renovations and remodels of existing stores. Financing
activities utilized $1,010,000 of cash as the Company paid the
dividend on the convertible preferred stock issued in April 1996.

During the first quarter of Fiscal 1998, the Company entered into a
new $40,000,000 Credit Agreement with a syndicate of banks led by the
Chase Manhattan Bank.  The new facility consists of a $20,000,000 line
of credit for direct borrowings and a $20,000,000 line for the
issuance of letters of credit.  The term of the new agreement is for
three years, with the letter of credit component renewable annually
during that period.

                                  -8-



















<PAGE>    11


Item 6-   Exhibits and Reports on Form 8-K

a.   Exhibits.

3.1              Restated Certificate of Incorporation of the Company
          (Incorporated herein by reference to Exhibit 3.2 to the Company's
          Registration Statement on Form S-1 File No. 33-29465 (the
          "Registration Statement")).

3.2              By-laws of the Company (Incorporated herein by
          reference to Exhibit 3.2 to the Company's Registration Statement on
          Form S-1 File No. 33-40372).

4.1              Preferred Stock Purchase Agreement dated April 5,
          1996.  (Incorporated herein by reference to the Company's Annual
          Report on Form 10-K for the year ended
          February 1, 1997).

4.2              Indenture, dated as of September 27, 1991, between
          the Company and Chemical Bank, as Trustee.  (Incorporated herein by
          reference to the Company's Annual Report on Form
          10-K for the year ended January 25, 1992).

27        Financial Data Schedule


                              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/ James J. Sheppard
                                   James J. Sheppard
                                   Senior Vice President and
                                   Chief Financial Officer



Date:     June  12, 1998





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