<TABLE> <S> <C>


<ARTICLE>                     5
<LEGEND>
This  schedule  contains  summary  financial   information  extracted  from  the
unaudited condensed  consolidated  financial statements as of September 30, 1998
(unaudited) and September 30, 1997 contained in the Company's  Quarterly  Report
on Form 10-Q for the period ending  September 30, 1998,  and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<CIK>                         0001052262
<NAME>                        Happy Kids Inc.
<MULTIPLIER>                                   1,000
<CURRENCY>                                     U.S. Dollars
       
<S>                             <C>                     <C>
<PERIOD-TYPE>                   9-Mos                   9-Mos
<FISCAL-YEAR-END>                      DEC-31-1998             DEC-31-1997
<PERIOD-START>                         JAN-01-1998             JAN-01-1997
<PERIOD-END>                           SEP-30-1998             SEP-30-1997
<EXCHANGE-RATE>                        1                       1
<CASH>                                 357                     0
<SECURITIES>                           0                       0
<RECEIVABLES>                          25,747                  0
<ALLOWANCES>                           513                     0
<INVENTORY>                            21,331                  0
<CURRENT-ASSETS>                       51,787                  0
<PP&E>                                 1,501                   0
<DEPRECIATION>                         0                       0
<TOTAL-ASSETS>                         53,835                  0
<CURRENT-LIABILITIES>                  18,733                  0
<BONDS>                                8,315                   0
<PREFERRED-MANDATORY>                  0                       0
<PREFERRED>                            0                       0
<COMMON>                               103                     0
<OTHER-SE>                             29,070                  0
<TOTAL-LIABILITY-AND-EQUITY>           53,835                  0
<SALES>                                114,721                 77,328
<TOTAL-REVENUES>                       114,721                 77,328
<CGS>                                  85,302                  57,908
<TOTAL-COSTS>                          16,539                  13,833
<OTHER-EXPENSES>                       0                       0
<LOSS-PROVISION>                       0                       0
<INTEREST-EXPENSE>                     1,790                   2,522
<INCOME-PRETAX>                        11,090                  3,065
<INCOME-TAX>                           2,814                   373
<INCOME-CONTINUING>                    8,276                   2,692
<DISCONTINUED>                         0                       0
<EXTRAORDINARY>                        0                       0
<CHANGES>                              0                       0
<NET-INCOME>                           8,276                   2,692
<EPS-PRIMARY>                          0.88                    0.35
<EPS-DILUTED>                          0.88                    0.35
        

</TABLE>