<TABLE> <S> <C>


<ARTICLE>                     5
<LEGEND>
This  schedule  contains  summary  financial   information  extracted  from  the
unaudited condensed  consolidated  financial statements as of March 31, 1998 and
March 31, 1997 contained in the Company's  Quarterly Report on Form 10-Q for the
period  ending March 31, 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>                   3-Mos                         3-Mos
<FISCAL-YEAR-END>                          DEC-31-1998                   DEC-31-1997
<PERIOD-START>                             JAN-01-1998                   JAN-01-1997
<PERIOD-END>                               MAR-31-1998                   MAR-31-1997
<EXCHANGE-RATE>                            1                             1
<CASH>                                     223                           0
<SECURITIES>                               0                             0
<RECEIVABLES>                              26,525                        0
<ALLOWANCES>                               513                           0
<INVENTORY>                                13,959                        0
<CURRENT-ASSETS>                           42,343                        0
<PP&E>                                     1,423                         0
<DEPRECIATION>                             0                             0
<TOTAL-ASSETS>                             44,771                        0
<CURRENT-LIABILITIES>                      34,211                        0
<BONDS>                                    28,581                        0
<PREFERRED-MANDATORY>                      0                             0
<PREFERRED>                                0                             0
<COMMON>                                   78                            0
<OTHER-SE>                                 8,512                         0
<TOTAL-LIABILITY-AND-EQUITY>               44,771                        0
<SALES>                                    35,715                        24,811
<TOTAL-REVENUES>                           35,715                        24,811
<CGS>                                      27,084                        18,454
<TOTAL-COSTS>                              5,069                         4,251
<OTHER-EXPENSES>                           0                             0
<LOSS-PROVISION>                           0                             0
<INTEREST-EXPENSE>                         990                           694
<INCOME-PRETAX>                            2,572                         1,412
<INCOME-TAX>                               260                           143
<INCOME-CONTINUING>                        2,312                         1,269
<DISCONTINUED>                             0                             0
<EXTRAORDINARY>                            0                             0
<CHANGES>                                  0                             0
<NET-INCOME>                               2,312                         1,269
<EPS-PRIMARY>                              0.30                          0.16
<EPS-DILUTED>                              0.30                          0.16
        

</TABLE>