<TABLE> <S> <C>


<ARTICLE>                     5
<LEGEND>
This  schedule  contains  summary  financial   information  extracted  from  the
unaudited condensed  consolidated  financial  statements as of June 30, 1998 and
June 30, 1997 contained in the Company's  Quarterly  Report on Form 10-Q for the
period  ending June 30, 1998,  and is qualified in its entirety by referenced to
such financial statements.
</LEGEND>
<CIK>                         0001052262
<NAME>                        Happy Kids Inc.
<MULTIPLIER>                                   1,000
<CURRENCY>                                     U. S. Dollars
       
<S>                             <C>                      <C>
<PERIOD-TYPE>                   6-Mos                    6-Mos
<FISCAL-YEAR-END>                        Dec-31-1998              Dec-31-1997
<PERIOD-START>                           Jan-01-1998              Jan-01-1997
<PERIOD-END>                             Jun-30-1998              Jun-30-1997
<EXCHANGE-RATE>                          1                        1
<CASH>                                   388                      0
<SECURITIES>                             0                        0
<RECEIVABLES>                            19,445                   0
<ALLOWANCES>                             513                      0
<INVENTORY>                              21,873                   0
<CURRENT-ASSETS>                         47,172                   0
<PP&E>                                   1,373                    0
<DEPRECIATION>                           0                        0
<TOTAL-ASSETS>                           49,090                   0
<CURRENT-LIABILITIES>                    17,170                   0
<BONDS>                                  3,780                    0
<PREFERRED-MANDATORY>                    0                        0
<PREFERRED>                              0                        0
<COMMON>                                 103                      0
<OTHER-SE>                               25,699                   0
<TOTAL-LIABILITY-AND-EQUITY>             49,090                   0
<SALES>                                  67,728                   39,557
<TOTAL-REVENUES>                         67,728                   39,557
<CGS>                                    50,552                   29,549
<TOTAL-COSTS>                            10,581                   8,431
<OTHER-EXPENSES>                         0                        0
<LOSS-PROVISION>                         0                        0
<INTEREST-EXPENSE>                       1,318                    1,368
<INCOME-PRETAX>                          5,277                    209
<INCOME-TAX>                             372                      21
<INCOME-CONTINUING>                      4,905                    188
<DISCONTINUED>                           0                        0
<EXTRAORDINARY>                          0                        0
<CHANGES>                                0                        0
<NET-INCOME>                             4,905                    188
<EPS-PRIMARY>                            0.55                     0.02
<EPS-DILUTED>                            0.55                     0.02
        

</TABLE>