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 August 2, 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:    (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 September  12, 1997: 17,155,086:

                    LECHTERS, INC. AND SUBSIDIARIES
                               FORM 10-Q
                   FOR QUARTER ENDED AUGUST 2, 1997
                                 INDEX


                                                            PAGE NO.

PART I.   Financial Information

       Item 1. Financial Statements

               Consolidated Balance Sheets
               August 2, 1997 and February 1, 1997               1

               Consolidated Statements of Income
               for the Thirteen and Twenty-Six Weeks Ended
               August 2, 1997 and August 3, 1996                    2
   
               Consolidated Statements of Cash Flows
               for the Twenty-Six Weeks Ended
               August 2, 1997 and August 3, 1996                    3
    
   
               Consolidated Statement of Shareholders'
               Equity for the Twenty-Six Weeks Ended
               August 2, 1997                                       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                                 9

<PAGE>    3
                      LECHTERS, INC. AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEETS
                                     
             (Amounts in thousands, except share and per share
                                 amounts)
           <TABLE>                                     
           <CAPTION>
                                           August 2,   February
                                              1997        1,
                                                          1997
           <S>                             <C>         <C>
                    A S S E T S            (unaudite       
                                              d)
           Current Assets:                             
           Cash and Cash Equivalents       $           $   7,022
                                           12,688
           Marketable Securities           38,252      54,084
           Accounts Receivable             12,904      5,561
           Merchandise Inventories         112,056     100,442
           Prepaid Expenses                    8,448   
                                                       5,734
                                                       
           Total Current Assets            184,348     172,843
           Property and Equipment:                     
           Fixtures and Equipment          68,269      66,828
           Leasehold Improvements                       102,912
                                           102,855
                                           171,124     169,740
           Less Accumulated Depreciation      81,428      74,356
           & Amortization
                    Net Property and        89,696     95,384
           Equipment
           Other Assets                                
                                           5,488       4,106
           Total Assets                    $           $272,333
                                           279,532
                                                       
           LIABILITIES AND SHAREHOLDERS'               
                       EQUITY
           Current Liabilities                         
           Accounts Payable                $14,471     $  3,264
           Dividends Payable - Preferred   0           1,010
           Stock
           Salaries, Wages and Other       18,825      13,318
           Accrued Expenses
           Taxes, Other Than Income Taxes  1,628       1,318
            Income Taxes Payable               22      1,979
                                                       
           Total Current Liabilities                     20,889
                                           34,946
           Long-Term Debt                              
           5% Convertible Subordinated                 
           Debentures                                  
              due September 27, 2001 (Net              
           of Unamortized                  59,416      58,853
              Discount of $5,584 and
           $6,147, respectively)
           Total Long-Term Debt              59,416      58,853
                                                       
           Deferred Income Taxes and       22,698      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 Sale Securities          (7)         (29)
           Additional Paid-In Capital      62,273      62,273
           Retained Earnings                           
                                           80,148      88,106
           Total Shareholders' Equity                    170,408
                                           162,472
           Total Liabilities and           $           $272,333
           Shareholders' Equity            279,532
           </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   Twenty-Six Weeks
                                  Ended               Ended
                             August   August    August  August 3,
                               2,       3,        2,
                               1997     1996      1997      1996
                               (unaudited)         (unaudited)
    <S>                      <C>      <C>      <C>      <C>
    Net Sales                $        $        $        $177,719
                             95,114   92,727   180,243
    Cost of Goods Sold                                  
    (including               72,266   70,849   137,418  135,227
       occupancy and
    indirect costs)
                                                        
          Gross Profit       22,848   21,878   42,825   42,492
                                                        
    Selling, General and                                
       Administrative        27,892   25,853   55,383   51,361
    Expenses
    Operating Loss           (5,044)  (3,975)  (12,558) (8,869)
    Other Expenses                                      
    (Income):
        Interest Expense     1,134    1,186    2,280    2,742
        Interest Income      (618)    (369)    (1,306)  (845)
        Loss (Gain) on Sale                             
    of                       (10)              (44)     
           Government                 1                 4
    Securities
                                                        
    Total Other Expenses     506               930        1,901
    (Income)                          818
                                                        
    Loss Before Income       (5,550)  (4,793)  (13,488) (10,770)
    Taxes
                                                        
    Income Tax Benefit       (2,275)           (5,530)   (4,416)
                                      (1,965)
                                                        
    Net Loss                 (3,275)  (2,828)  (7,958)  (6,354)
                                                        
    Preferred Stock          253               505            336
    Dividend Requirement              252
                                                        
    Net Loss Applicable to                              
    Common                   ($3,528  ($3,080  ($8,463) ($6,690)
      Shareholders           )        )
                                                        
    Net Loss Per Common      ($0.21)           ($0.49)   ($0.39)
    Share                             ($0.18)
    Weighted Average Common                             
    Shares                   17,155,  17,155,  17,155,0 17,155,00
       Outstanding           000      000      00       0
    </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>
                                         Twenty-Six Weeks Ended
                                        August 2,    August 3,
                                            1997         1996
                                              (unaudited)
      <S>                              <C>          <C>
      Cash Flows From Operating                     
      Activities:
      Net Loss                         ($7,958)     ($6,354)
      Adjustments to Reconcile Net                  
      Loss to Net
         Cash Used In Operating
      Activities:
      Depreciation and Amortization    8,591        8,349
      Other                            982          888
      Changes in Assets and                         
      Liabilities:
      Increase in Accounts Receivable  (7,343)      (4,529)
      Increase in Merchandise          (11,614)     (9,061)
      Inventories
      Increase in Prepaid Expenses     (2,714)      (5,676)
      Increase in Accounts Payable,                 
          Accrued Expenses and Taxes                
        Other                          17,024       10,542
          Than Income Taxes
      Decrease in Income Taxes         (1,957)      (665)
      Payable
      Increase in Other Assets         (869)        (687)
                                                    
      Net Cash Used In Operating       (5,858)      (7,193)
      Activities
                                                    
      Cash Flows From Investing                     
      Activities:
      Capital Expenditures             (3,336)      (3,907)
      Decrease in Available for Sale                
           Securities                  15,870        15,185
                                                    
      Net Cash Provided by                          
        Investing Activities           12,534       11,278
                                                    
      Cash Flows From Financing                     
      Activities:
      Issuance of Preferred Stock      0            20,000
      Payment of Senior Notes          0            (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 Equivalents               5,666        6,460
      Cash and Cash Equivalents,                    
      Beginning of                     7,022           4,234
        Period
                                                    
      Cash and Cash Equivalents, End   12,688       $10,694
      of Period
                                                    
      Supplemental Disclosure of Cash               
      Flows
        Information:                                
                                                    
      Non Cash Investing Activities:                
                                                    
      Unrealized Holding Loss                       
      Adjustment                       $38          ($252)
        on Available for Sale
      Securities
      Cash Paid During the Period                   
      for:
      Interest                         $121         $ 1,100
                                                    
      Income Taxes                     $1,923       $    665
      </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   Preferr  Additio            Unreali       
                   Stock       ed      nal     Retaine    zed         
                             Stock   Paid-In      d     Holding    Total
                   Issued                      Earning    Gain
                             Issued  Capital      s      (Loss)
<S>               <C>       <C>      <C>       <C>      <C>       <C>
Balance, February $58       $20,000  $62,273   $88,106  ($29)     $170,40
1, 1997                                                           8
                                                                  
Net Loss - Twenty-                                                 
Six Weeks         --        --       --        (7,958)  --        (7,958)
Ended August 2,
1997
                                                                  
Unrealized                                                        
Holding Loss         --                                  22        22
   Adjustment               --       --        --
                                                                  
Balance, August                                                   
2, 1997           $58       $20,000  $62,273   $80,148  ($7)      $162,47
   (unaudited)                                                    2

</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 and twenty-
     six weeks ended August 2,  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 and twenty-six weeks ended August 2, 1997 and
     August 3, 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
     August 2, 1997 and August 3, 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.  For the purpose of
     computing fully diluted net loss per share, the assumed
     conversion of such debentures would have an anti-dilutive effect
     on fully diluted loss per share for the thirteen and twenty-six
     weeks ended August 2, 1997 and August 3, 1996.  With respect to
     the Convertible Preferred Stock, conversion of such preferred
     stock would have an anti-dilutive effect on the calculation of
     fully diluted loss per share for the thirteen and twenty-six
     weeks ended August 2, 1997 and August 3, 1996.

3.   RECENT ACCOUNTING PRONOUNCEMENTS

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


                                 - 5 -

<PAGE>    8


4.   AMENDMENT OF THE AMENDED AND RESTATED CREDIT AGREEMENT

     On September 11, 1997, the Company and a group of banks executed
     Amendment No. 1 of the Amended and Restated Credit Agreement
     (Credit Agreement) dated May 23, 1996. The significant terms of
     Amendment No. 1 included the authorization of the Company to
     purchase, redeem or retire up to one million shares in aggregate
     of its common stock, to make loans to employees, and allows
     letters of credit to have extended expiration dates rather than
     automatically expiring 90 days after issuance. The termination
     date of the Credit Agreement remains May 22, 1998.  The Board of
     Directors of the Company, at its Meeting held September 11, 1997,
     authorized the purchase, redemption or retirement by the Company
     of its common stock to the extent permitted under the Credit
     Agreement.



































                                  -6-
<PAGE>    9
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

RESULTS OF OPERATIONS

THIRTEEN WEEKS ENDED AUGUST 2, 1997 IN COMPARISON WITH THIRTEEN WEEKS
ENDED AUGUST 3, 1996.

Net sales for the thirteen weeks ended August 2, 1997 increased
$2,387,000 to $95,114,000, a 2.6% increase over $92,727,000 reported
for the comparable thirteen week period of the prior fiscal year. The
sales increase was attributable to increased advertising activity by
the Company in support of our Lechters Housewares stores and to the
increase in the number of stores open over the prior year. For the
second quarter of Fiscal 1997, the Company's comparable store sales
increased 0.9% versus the prior year. During the second quarter of
Fiscal 1997, the Company opened one store and closed four. Stores open
as of August 2, 1997 totaled 645 compared to a total of 643 stores
open at August 3, 1996, an increase of 0.3%.

Gross Profit for the quarter increased $970,000 to $22,848,000 and was
24.0% as a percent of net sales, which was 0.4 percentage points above
the gross profit rate for the second quarter of the  prior year. The
increase in gross margin was primarily attributable to both a lower
cost of goods sold for Lechters Housewares merchandise and better
absorption of fixed occupancy expenses resulting from the increase in
comparable store sales.

Selling, general and administrative expenses totaled $27,892,000, an
increase of $2,039,000 over the same period of the prior year. At
29.3% as a percent of net sales, the expense rate for the second
quarter was 1.4 percentage points higher than the rate for second
quarter of Fiscal 1996. The increase in selling, general and
administrative expenses was due to the planned increase in operating
expenses associated with two new stores, additional advertising
expenditures, and expenses and asset write-offs associated with the
closing of four stores during the second quarter of 1997.

Other Expenses for the quarter were $506,000, a $312,000 decrease from
the comparable period of the prior year. As a percent of sales, other
expenses declined 0.4% to 0.5%. The decrease was primarily
attributable to higher interest income which was the result of higher
balances of invested cash and marketable securities and higher market
interest rates.

TWENTY-SIX WEEKS ENDED AUGUST 2, 1997 IN COMPARISON WITH TWENTY-SIX
WEEKS ENDED AUGUST 3, 1996.

Net sales for the twenty-six weeks ended August 2, 1997 increased
$2,524,000 to $180,243,000, a 1.4% increase over $177,719,000 reported
for the comparable twenty-six week period of the prior fiscal year.
The sales increase was attributable to additional promotional
activities of the Company and to the increase in the number of stores
open over the prior year. Through the first two quarters of Fiscal
1997, the Company's comparable store sales decreased 0.2% versus the
prior year. For the year to date, the Company has opened three stores
and closed seven stores. The net decrease of four stores for the year
has reduced the Company's retail selling space by 15,800 square feet
to approximately 2,416,400. As of August 2, 1997, the Company operated
645 stores as compared with 643 stores at August 3, 1996, an increase
of 0.3%.
                                   
                                   
                                  -7-



<PAGE>    10

Gross Profit for the year to date increased $333,000 to $42,825,000
and was 23.8% as a percent of net sales which was 0.1 percentage
points below the gross profit rate for the comparable year to date
period of the prior year. The slight decrease in the gross margin rate
was primarily attributable to the under-absorption of occupancy
expenses given the decline of comparable store sales.

Selling, general and administrative expenses totaled $55,383,000, an
increase of $4,022,000 over the prior year. At 30.7% as a percent of
net sales, the expense rate for the year to date was 1.8 percentage
points higher than the rate for comparable twenty-six  week period of
Fiscal 1996. The increase in selling, general and administrative
expenses was due to the increased operating expenses associated with
new stores, additional advertising expenditures, and expenses and
asset write-offs associated with store closings.

Other Expenses for the fiscal year to date were $930,000, a $971,000
decrease from $1,901,000 reported for the comparable period of the
prior year. As a percent of sales, other expenses declined 1.1% to
0.5%. The decrease was attributable to the lower interest expense due
to the repayment of  the Company's senior notes during the prior
fiscal year and higher interest income which was the result of higher
balances of invested cash and marketable securities coupled with
higher interest rates.

LIQUIDITY AND CAPITAL RESOURCES.

Cash, cash equivalents and marketable securities increased $18,077,000
over the balances at the close of the second quarter of Fiscal 1996.
This increase was a significant reason for the aforementioned
improvement in Other Expenses, especially in the second quarter of
Fiscal 1996.

Cash flow during the twenty-six weeks ended August 2, 1997 as
reflected on the Statements of Cash Flows, produced  an increase in
cash and cash equivalents of $5,666,000. Operating activities,
comprised of the operating loss of $7,958,000 adjusted for non-cash
expenses such as depreciation and amortization and by changes in
operating assets utilized $5,858,000 of cash to date during Fiscal
1997. Significant components of operating activities for the year to
date included depreciation and amortization which provided cash of
$8,591,000, merchandise inventories which increased using $11,614,000
of cash and accounts payable, accrued expenses and taxes other than
income taxes which increased and provided cash of $17,024,000. The
increases in inventory and accounts payable were normal as the Company
rebuilt its inventories from their 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 for the year to date, although total
merchandise inventories were $6,903,000 lower at August 2, 1997 than
at August 3, 1996. Investing activities, capital expenditures and
reductions in marketable (available for sale) securities produced
$12,534,000 in cash.  Capital expenditures used $3,336,000 of cash
while the decrease in available for sale securities provided
$15,870,000 of cash. Capital expenditures were primarily for
construction of and fixtures for new locations and for enhancements to
the information technology infrastructure. Financing activities
utilized $1,010,000 of cash as the Company paid its initial dividend
on  the convertible preferred  stock issued in April 1996.

                                  -8-




<PAGE>    11

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: September 16, 1997



















                                 - 9-