SECURITIES AND EXCHANGE COMMISSION
                         Washington, D. C. 20549

                                Form 10-Q

               QUARTERLY REPORT UNDER SECTION 13 or 15(d)
                 OF THE SECURITIES EXCHANGE ACT OF 1934



FOR THE QUARTER ENDED     March 1, 1998    COMMISSION FILE NUMBER 1-5960



                      CONCORD FABRICS INC.                               
        (Exact name of Registrant as specified in its charter) 



          DELAWARE                                  13-5673758           
(State or other jurisdiction of                   (I. R. S. Employer    
incorporation or organization)                    Identification No.)    
   



    1359 Broadway, New York, New York                      10018         
(Address of principal executive offices)                 (Zip Code)     




Registrant's telephone number, including area code   (212) 760-0300      





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 (or for such shorter period
that the Registrant was required to file such reports) and (2) has been
subject to such filing requirements for the past 90 days.  Yes X  No   .


2,236,356 shares of Registrant's Class A Common Stock, par value $.50
per share and 1,448,751 shares of Registrant's Class B Common Stock, par
value $.50 per share were outstanding as of March 31, 1998.   

                                                               1 of 16 <PAGE>
       
                  CONCORD FABRICS INC. AND SUBSIDIARIES

                      QUARTERLY REPORT ON FORM 10-Q

                   FOR THE QUARTER ENDED MARCH 1, 1998



                               INDEX                      Page Number 

PART I.        Financial Information

     Item 1.   Financial Statements

               Consolidated Statements of Income -    
               Twenty-Six Weeks Ended March 1, 1998   
               (Unaudited) and March 2, 1997 (Unaudited)            3

               Consolidated Statements of Changes in              
               Stockholders' Equity (Unaudited for the period
               August 31, 1997 to March 1, 1998)                    4   

               Consolidated Balance Sheets - March 1, 1998    
               (Unaudited), and August 31, 1997 (Derived  
               from Audited Financial Statements) and
               March 2, 1997 (Unaudited)                          5-6

               Consolidated Statements of Cash Flows -
               Twenty-Six Weeks Ended March 1, 1998   
               (Unaudited) and March 2, 1997 (Unaudited)          7-8

               Notes to Consolidated Financial Statements
               (Unaudited)                                       9-12

     Item 2.   Management's Discussion and Analysis
               of Financial Condition and Results of
               Operations                                       13-14  

Part II.       Other Information

     Item 6.   Exhibits and Reports on Form 8-K                    15

               Signature Page                                      16









                                                              2 of 16 

<TABLE>

Item 1. Financial Statements
        --------------------                                                    
                         
<CAPTION>                    CONCORD FABRICS INC. AND SUBSIDIARIES

                               CONSOLIDATED STATEMENTS OF INCOME

                                       (Unaudited)

                                        (Note A)


                              For the Twenty-Six Weeks Ended  For the Thirteen Weeks Ended    
                              ------------------------------  -----------------------------  
                                  March 1,        March 2,       March 1,       March 2,      
                                    1998            1997           1998           1997    
                                 -----------     -----------    -----------    -----------
<S>                              <C>             <C>            <C>            <C>
Net Sales .....................  $50,845,249     $52,873,255    $26,094,847    $25,825,015 
                                 -----------     -----------    -----------    ----------- 
Cost of Sales .................   35,060,890      36,992,337     17,979,549     18,042,741
Merchandising Expenses ........    3,782,591       3,605,836      1,910,106      1,722,113
Selling and Shipping Expenses .    3,853,571       4,786,549      1,961,265      2,226,253
General and Administrative 
   Expenses ...................    4,914,938       4,908,226      2,515,303      2,486,818
Interest Expense (Net) ........      353,155         590,736        179,114        289,318   
                                 ------------    ------------   -----------    ------------
      Total ...................  $47,965,145     $50,883,684    $24,545,337    $24,767,243    
                                 ------------    ------------   -----------    ------------   
                                                                                          
Earnings before income taxes ..    2,880,104       1,989,571      1,549,510      1,057,772 

Income tax provision ..........    1,160,000         829,000        625,000        440,000    
                                 -----------     -----------    -----------    -----------    

Net Earnings ..................  $ 1,720,104     $ 1,160,571    $   924,510    $   617,772  
                                 ===========     ===========    ===========    ===========

Basic Earnings Per Share ......         $.47            $.32           $.25           $.17 
                                 ===========     ===========    ===========    ===========  

Diluted Earnings Per Share ....         $.45            $.31           $.24           $.17
                                 ===========     ===========    ===========    =========== 
Weighted average shares used in  
   computing basic earnings per    
   share ......................    3,665,107       3,658,074      3,665,107      3,659,791 
                                 ===========     ===========    ===========    ===========
Weighted average shares used in  
   computing diluted earnings
   per share ..................    3,808,259       3,732,874      3,820,079      3,740,728
                                 ===========     ===========    ===========    ===========
 
Dividend per Common Share .....      NONE            NONE           NONE           NONE   
                                 ===========     ===========    ===========    ===========

                                          
The attached notes are made a part hereof.

                                                                                   3 of 16   
</TABLE>                                               <PAGE>
<TABLE>



<CAPTION>                           CONCORD FABRICS INC.

                             CONSOLIDATED STATEMENTS OF CHANGES

                                  IN STOCKHOLDERS' EQUITY 



                  Class A Common Stock  Class B Common Stock Additional Retained  Total       
                    Number     Dollar    Number     Dollar    Paid-in   Earnings  Stockhold-
                   of Shares   Value    of Shares   Value     Capital             ers' Equity
                   -------------------- ------------------ ---------- ----------- -----------
<S>                <C>       <C>        <C>       <C>      <C>        <C>         <C>
September 1, 1996  2,146,956 $1,073,478 1,509,401 $754,701 $9,166,123 $29,844,823 $40,839,125
                                       
Net Earnings                                                            3,358,725   3,358,725

Conversion from
   Class B shares
   to Class A 
   shares             53,300     26,650   (53,300) (26,650)

Exercise of stock
   options             8,750      4,375                        25,938                  30,313
                   -------------------- ------------------ ---------- ----------- -----------
August 31, 1997    2,209,006  1,104,503 1,456,101  728,051  9,192,061  33,203,548  44,228,163
                                                                                             
Net Earnings                                                            1,720,104   1,720,104

Conversion from
   Class B shares
   to Class A
   shares              7,350      3,675    (7,350)  (3,675)
                   -------------------- ------------------ ---------- ----------- -----------
March 1, 1998      2,216,356 $1,108,178 1,448,751 $724,376 $9,192,061 $34,923,652 $45,948,267
                   ==================== ================== ========== =========== ===========

The data reflecting Changes in Stockholders' Equity for the period August 31, 1997 to March
1, 1998 is unaudited.








The attached notes are made a part hereof.









                                                                                4 of 16
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<PAGE>
             CONCORD FABRICS INC. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS

                                     (Note A)

                                                   August 31,   
                                                      1997   
                                                  (Derived from   
                                     March 1,        Audited         March 2, 
                                       1998         Financial          1997     
A S S E T S                        (Unaudited)     Statements)     (Unaudited)  
-----------                        ------------    ------------    ------------

Current Assets:
   Cash and cash equivalents ..... $ 8,442,437     $ 7,381,044     $ 9,970,492 
   
   Held to maturity investments     
      (at cost) ..................  14,043,354      13,522,758       5,854,541
  
   Accounts receivable (less
      allowance for doubtful accounts
      of $1,651,000 on March 1,         
      1998, $1,350,000 on August 31,  
      1997, and $1,851,000 on  
      March 2, 1997) .............  19,091,254      21,311,977      20,147,173 

   Inventories (Note B) ..........  16,005,692      12,903,902      17,775,752  

   Prepaid and refundable income
      taxes ......................     255,000         255,000         528,848
   
   Prepaid expenses and other
     current assets ..............   1,444,421       1,416,839       1,174,608  

   Deferred income taxes .........   1,542,000       1,773,000       1,992,000  
                                   ------------    -----------     -----------
   Total Current Assets .......... $60,824,158     $58,564,520     $57,443,414  

Property, plant and equipment
   (at cost, less accumulated   
   depreciation and amortization of
   $7,221,667 on March 1,     
   1998, $6,400,169 on August 31,  
   1997, and $6,139,319 on  
   March 2, 1997) ................   8,131,678       7,438,260       7,915,527  

Property and plant leased to others  1,813,132       1,889,212       1,965,292
Property, plant, & equipment held for         
   sale - at estimated disposal value
   (Note I) ......................   1,902,059       1,936,969       2,065,718
Other assets .....................   2,758,144       3,205,145       2,422,539  
                                   -----------     -----------     -----------
      T O T A L .................. $75,429,171     $73,034,106     $71,812,490
                                   ===========     ===========     ===========  
The attached notes are made a part hereof.                             5 of 16 <PAGE>
                      CONCORD FABRICS INC. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS

                                     (Note A)

                                                   August 31,   
                                                      1997  
                                                  (Derived from  
                                     March 1,        Audited         March 2,
                                       1998         Financial          1997     
L I A B I L I T I E S              (Unaudited)     Statements)     (Unaudited) 
---------------------              ------------    ------------    ------------
Current Liabilities:
   Current portion of notes payable
      insurance company (Note D) . $ 2,850,000     $   -0-         $   -0-
   Accounts payable ..............   5,281,383       4,293,207       5,311,513 
   Accrued expenses and taxes ....   2,820,272       3,478,487       3,041,719  
   Income taxes payable ..........     309,000         -0-             374,000
                                   -----------     -----------     ----------- 
   Total Current Liabilities ..... $11,260,655     $ 7,771,694     $ 8,727,232  

Notes payable - insurance      
   company (Note D) ..............  17,150,000      20,000,000      20,000,000  
Deferred income taxes ............     550,000         550,000         601,000 
Other liabilities ................     520,249         484,249         454,249
                                   -----------     -----------     -----------  
   Total Liabilities ............. $29,480,904     $28,805,943     $29,782,481 
Commitments and contingencies      -----------     -----------     ----------- 
   (Note B) 
 
S T O C K H O L D E R S '  E Q U I T Y 
--------------------------------------
Common stock: (Notes E & F)  
   Class A - $.50 par value 
      authorized 4,000,000 shares,
      issued 2,216,356 shares at
      March 1, 1998, 2,209,006    
      shares August 31, 1997  
      and 2,155,706 shares at
      March 2, 1997 ..............   1,108,178       1,104,503       1,077,853 
   Class B - $.50 par value
      authorized 4,000,000 shares,
      issued 1,448,751 shares at
      March 1, 1998, 1,456,101    
      shares at August 31, 1997  
      and 1,509,401 shares at
      March 2, 1997 ..............     724,376         728,051         754,701 
Additional paid-in capital .......   9,192,061       9,192,061       9,192,061
Retained earnings ................  34,923,652      33,203,548      31,005,394
                                   -----------     -----------     -----------
   Total Stockholders' Equity .... $45,948,267     $44,228,163     $42,030,009
                                   -----------     -----------     ----------- 
      T O T A L .................. $75,429,171     $73,034,106     $71,812,490
                                   ===========     ===========     ===========  
The attached notes are made a part hereof.                             6 of 16 <PAGE>
<TABLE>
<CAPTION>             CONCORD FABRICS INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                    (Note A) 

                                                        For the Twenty-Six Weeks Ended   
                                                       --------------------------------
                                                         March 1,            March 2,  
                                                           1998                1997    
                                                        -----------         ----------- 
Cash flows from operating activities:                       
<S>                                                     <C>                 <C>
   Net earnings ....................................    $1,720,104          $1,160,571 
      Adjustments to reconcile net earnings to net
        cash provided by operating activities:          
         Depreciation and amortization .............       797,578             790,833
         Deferred income tax .......................       231,000             197,000
         Provision for doubtful accounts ...........       298,649             310,200

         Changes in assets:
            Decrease (increase) in:
               Accounts receivable .................     1,922,074           6,639,733 
               Inventories .........................    (3,101,790)           (452,573)
               Prepaid and refundable income taxes .       -0-                (105,648)
               Prepaid expenses and other
                 current assets ....................       (27,582)            401,290
               Other assets ........................       447,001              34,219 
         Changes in liabilities:
            Increase (decrease) in:
               Accounts payable ....................       988,176          (1,620,964)
               Accrued expenses and taxes ..........      (658,215)         (1,326,312)
               Income taxes payable ................       309,000             374,000 
               Other liabilities ...................        36,000              30,000 
                                                        -----------         -----------
   Net cash provided by operating activities .......     2,961,995           6,432,349 
                                                        -----------         -----------  
Cash flows from investing activity:  
   Proceeds from sales of held to maturity                                               
      securities ...................................     7,832,478           2,000,000
   Purchases of held to maturity securities ........    (8,353,074)         (7,810,120)
   Purchases of property, plant, and equipment .....    (1,414,916)           (513,240)
   Proceeds from sale of machinery and equipment ...        34,910              88,166
                                                        -----------         -----------
Net cash (used in) investing activities: ...........    (1,900,602)         (6,235,194)

Cash flows from financing activities:
   Issuance of common stock (stock options exercised)      -0-                  30,313
                                                        -----------         -----------
Net cash provided by financing activities ..........       -0-                  30,313

NET INCREASE IN CASH AND CASH EQUIVALENTS ..........     1,061,393             227,468 
                                                        -----------         ----------- 
Cash and cash equivalents - beginning of period ....     7,381,044           9,743,024 
                                                        -----------         -----------         
CASH AND CASH EQUIVALENTS - END OF PERIOD ..........    $8,442,437          $9,970,492  
                                                        ===========         ===========
The attached notes are made a part hereof.
</TABLE>                                                               7 of 16<PAGE>
<TABLE>
                      CONCORD FABRICS INC. AND SUBSIDIARIES
<CAPTION>             CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                     (Note A)

                                                                             Continued  
 

                                                        For the Twenty-Six Weeks Ended   
                                                       --------------------------------
                                                         March 1,            March 2,  
                                                           1998                1997    
                                                       ------------        ------------      
Supplemental Information:
<S>                                                        <C>                 <C>
Cash Paid for:                                                           
     Interest ......................................       931,000             931,000
     Income taxes ..................................       750,500             399,000           









                                             
























The attached notes are made a part hereof.



                                         
</TABLE>                                                         8 of 16 <PAGE>
     
                    CONCORD FABRICS INC. AND SUBSIDIARIES

                              NOTES TO FORM 10-Q

                              AS AT MARCH 1, 1998

                                  (Unaudited)


Note A

The accompanying unaudited consolidated financial statements have been
prepared in accordance with the instructions to Form 10-Q.  Accordingly, they
do not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements.  In the
opinion of management, all adjustments of a normal recurring nature
considered necessary for a fair presentation have been included.  Operating
results for the twenty-six weeks ended March 1, 1998 are not necessarily
indicative of the results that may be expected for the fiscal year ending
August 30, 1998.  These statements should be read in conjunction with the
financial statements and notes thereto included in Registrant's annual report
to shareholders and Form 10-K for the fiscal year ended August 31, 1997.

Note B - Inventories:

Inventories are summarized by as follows:

                         March 1,        August 31,       March 2,  
                           1998             1997            1997    
                       ------------     -----------     ------------
Finished goods......... $ 8,109,402     $ 8,164,772      $ 9,729,035
Work-in-process........   2,545,014       2,527,339        1,611,718
Greige goods and yarn..   5,351,276       2,211,791        6,434,999
                       ------------     -----------     ------------
   Total............... $16,005,692     $12,903,902      $17,775,752 
                       ============     ===========     ============
    
The foregoing inventory amounts at March 1, 1998 and March 2, 1997 were
derived from perpetual inventory records maintained by Registrant.

At March 1, 1998, Registrant had outstanding commitments to purchase greige
goods aggregating $5,100,000.

Note C - Notes Payable - Banks:

At March 1, 1998, Registrant was free of bank debt and had total unused bank
lines of credit aggregating $20,000,000.

Note D - Notes Payable - Insurance Company:

On November 30, 1994, the Registrant obtained a $20,000,000 loan from John
Hancock Mutual Life Insurance Company.  This unsecured loan bears interest at
9.31% a per annum and is repayable in seven equal annual installments
commencing on November 30, 1998.
                                                                   9 of 16
                     

                     CONCORD FABRICS INC. AND SUBSIDIARIES

                              NOTES TO FORM 10-Q

                              AS AT MARCH 1, 1998

                                  (Unaudited)          


                                                           Continued

The loan agreement requires maintenance of certain financial ratios and
maintenance of tangible net worth of approximately $39,175,000.  The
agreement also prohibits the pledging of assets and restricts dividends and
redemptions of capital stock to $3,000,000 plus 50% of net earnings
subsequent to August 28, 1994; the cumulative amount available for such
payments aggregated approximately $5,234,000 at March 1, 1998.

Note E - Common Stock:

The Class A and Class B shares principally differ as follows:

(1)  The Class A shares have a 15% dividend preference and a 10% liquidation
preference with respect to the Class B shares.

(2)  Holders of Class A shares are entitled to one vote a share whereas
holders of Class B shares are entitled to ten votes a share.

(3)  Holders of Class A shares voting as a separate class are entitled to
elect 25% of Registrant's directors and holders of Class A shares and Class B
shares voting together are entitled to elect the remaining directors.

(4)  Class B shares are convertible into Class A shares on the basis of one
share of Class A shares for each share of Class B shares;  Class A shares
have no conversion rights.

Note F - Stock Options:

Pursuant to an Incentive Program adopted on January 10, 1989, and amended on
December 4, 1996 awards (as defined) may be granted to key employees and
directors of the Registrant up to a maximum of 500,000 shares of the
Registrant's Class A common stock.

On January 10, 1989, options to purchase an aggregate of 150,000 shares of
the Registrant's Class A common stock at $3 a share (fair market value at
such date) were granted to three employees.  The options are exercisable in
four annual installments commencing January 10, 1994 and expire ten years
from the date of grant.

On January 9, 1996, options to purchase an aggregate of 200,000 shares of the
Registrant's Class A common stock at $4.625 a share (fair market value at     


                                                                10 of 16<PAGE>
                    CONCORD FABRICS INC. AND SUBSIDIARIES

                              NOTES TO FORM 10-Q            

                              AS AT MARCH 1, 1998

                                  (Unaudited)

                                                           Continued 

such date) were granted to two employees.  The options are exercisable in
four annual installments commencing January 9, 1997 and expire ten years from
the date of the grant.

On January 9, 1996 options to purchase 5,000 shares of the Registrant's Class
A common stock at $4.625 (fair market value at such date) were granted to two
outside directors.  On September 2, 1996, options to purchase an additional
5,000 shares of the Registrant's Class A common stock at $6.625 (fair market
value at such date) were granted to those directors.

On January 14, 1997, the Registrant granted an option to the Chairman of the
Board of Directors to purchase an aggregate of 70,000 shares of the
Registrant's Class A common stock at $7.0125 a share (110% of the fair market
value at such date).  This option is exercisable in five annual installments
commencing January 14, 1998, and expires five years from the date of grant;
the Chairman was also granted an option to purchase 30,000 shares of the
Registrant's Class A common stock at $6.375 a share.  This option is
exercisable in five annual installments commencing January 14, 1998 and
expires ten years from the date of grant.
 
On January 13, 1998 options to purchase 7,500 shares of the Registrant's
Class A common stock at $8.875 (fair market value at such date) were granted
to three outside directors.

The Registrant accounts for equity - based awards granted to employees and
directors under APB Opinion No. 25 under which no compensation cost has been
recognized for stock options granted at fair market value.  Had compensation
cost for these stock options been determined consistent with SFAS No. 123,
the decrease in Registrant's net earnings and net earnings per share would
have not been material. 

Note G - Earnings Per Share:

In 1997, the Financial Accounting Standards Board issued SFAS No. 128,
"Earnings Per Share."  This statement establishes standards for computing and
presenting earnings per share ("EPS"), replacing the presentation of
currently required Primary EPS with a presentation of Basic EPS.  For
entities with complex capital structures, the statement requires the dual
presentation of both Basic EPS and Diluted EPS on the face of the statement
of operations.  Under this new standard,  Basic EPS is computed on the
weighted average number of shares actually outstanding during the year. 
                                                                         
                                                                      11 of 16
                                       




                    CONCORD FABRICS INC. AND SUBSIDIARIES

                              NOTES TO FORM 10-Q

                              AS AT MARCH 1, 1998

                                  (Unaudited)

                                                           Continued         

 
Diluted EPS includes the effect of potential dilution from the exercise of
outstanding dilutive stock options and warrants into common stock using the
treasury stock method.  SFAS No. 128 became effective for financial
statements issued for periods ending after December 15, 1997.  Prior year's
financial statements have been restated to conform to this statement.

Note H - Chino, California Facility:

In February 1994, the Registrant leased the land and building at the Chino,
California facility for a five year period at an annual net rental of
$297,000; the lessee was also granted the option to purchase the land and
building during the lease period for $2,900,000.  
                                        
Note I - Property, Plant and Equipment Held for Sale:

In the fourth quarter of fiscal 1995 Registrant decided to dispose of its
Washington, Georgia dyeing and finishing plant and has been actively
searching for a buyer; manufacturing operations ceased October 6, 1995. 
Registrant estimates that the net proceeds, from the sale of the facility
will approximate the facility's net book value.






















                                                                 12 of 16<PAGE>
  
                     CONCORD FABRICS INC. AND SUBSIDIARIES

                                 MARCH 1, 1998
  
Item 2..........MANAGEMENT'S DISCUSSION AND ANALYSIS OF
             FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS

OPERATIONS - Twenty-Six Weeks Ended March 1, 1998 Compared With Twenty-Six
Weeks Ended March 2, 1997.

Fabric sales decreased by 3.8%.  This resulted from a 3.3% decline in yards
sold and a less than 1% decline in average selling price. 

Gross profit margin increased from 30% in the prior period to 31% in the
current period primarily due to improved plant performance and the wider
distribution of knitted fabrics.  Actual gross profit declined marginally as
the increased gross margin percent almost offset the effect of the decline in
sales.

Selling and shipping expenses declined by 19.5% or approximately $933,000. 
Reduced sales in Registrant's current business lines resulted in a $377,000
reduction in selling and shipping expenses.  The balance of the reduction was
primarily due to the phasing out of sales of woven fabrics to women's apparel
manufacturers.  Future quarterly comparisons to prior year results will not
benefit substantially from the latter expense reductions.  In the current
period selling and shipping expenses were 7.6% of sales; in the prior year's
period they were 9.1% of sales.

Interest expense (net) declined by 40.2% as Registrant generated cash flow
from its reduction in business activity and earned interest income from cash
invested in marketable securities.

Earnings before income taxes for the first twenty-six weeks of fiscal 1998
were $2,880,000 compared with $1,990,000 for the first twenty-six weeks of
fiscal 1997.  Net earnings were $1,720,000 for 1998 and $1,161,000 for 1997. 
The improvement in earnings was principally due to the reduction in selling
and shipping expenses resulting from the phasing out of sales of woven
fabrics to women's apparel manufacturers and to a lesser extent to reduced
net interest expense.

OPERATIONS - Thirteen Weeks Ended March 1, 1998 Compared With Thirteen Weeks
Ended March 2, 1997.

Fabric sales increased by 1.0%.  This resulted from a 3.4% increase in
average selling price and a 2.3% decline in yards sold. 

Gross profit margin increased from 30.1% in fiscal 1997 to 31.1% in fiscal
1998 primarily due to Registrant's elimination of its less profitable product
lines and the implementation of its strategy to focus on the more profitable
aspects of its business (Concord House and knitted fabrics).
                                                                      
                                                                      13 of 16<PAGE>
                     CONCORD FABRICS INC. AND SUBSIDIARIES

                                 MARCH 1, 1998

                                                           Continued
  
Item 2..........MANAGEMENT'S DISCUSSION AND ANALYSIS OF
             FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS

Merchandising expenses increased by 10.9% as a result of higher design costs. 
Merchandising expenses were 7.3% of sales in the current period and 6.7% of
sales in the prior year's period.

Selling and shipping expenses declined by 11.9% or approximately $265,000. 
The phasing out of sales of the woven fabrics to women's apparel
manufacturers resulted in a $116,000 reduction in selling and shipping
expenses.  They were 7.5% of sales in the current period and 8.6% of sales in
the prior year's period.

Interest expense (net) declined by 38.1% as Registrant generated cash flow
from its planned reduction of business activity which stemmed from the
elimination of unprofitable product ranges.  Registrant generated interest
income from cash invested in marketable securities.

Earnings before income taxes for the second quarter of fiscal 1998 were
$1,550,000 compared with $1,058,000 for the second quarter of fiscal 1997. 
Net earnings were $925,000 for 1998 and $618,000 for 1997. 

Future reporting periods may not compare as favorably as this quarter did
when compared with 1997 operating results as the elimination of Registrant's
less profitable product lines was virtually completed by the end of the
second quarter of fiscal 1997.

LIQUIDITY AND CAPITAL RESOURCES

During the first twenty-six weeks of fiscal 1998, Registrant's operations
provided $2,962,000 cash.  $1,415,000 was used to acquire fixed assets
($825,000 for plant and equipment at Registrant's Milledgeville, Georgia
production facility and the balance for furniture, fixtures and leasehold
improvements in Registrant's New York office).  Cash increased by $1,061,000
during the period.  $7,832,000 of held to maturity securities matured. 
Working capital declined by $1,229,000 for the twenty-six weeks ended March
1, 1998 as a result of the reclassification to current liabilities of
$2,850,000, the first installment due November 30, 1998 on Registrant's notes
payable.  Registrant expects its lines of credit and cash flow from
operations to be adequate to finance operations and meet its cash
requirements for the balance of fiscal 1998.

Forward Looking Statements

This report contains forward looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 and actual results could
differ materially from those contemplated by such statements.                 
                                                                14 of 16 <PAGE>
                     CONCORD FABRICS INC. AND SUBSIDIARIES

                                   FORM 10-Q

                                    PART II




                    Item 6. Exhibits and reports on Form 8-K     
                                                                 
                         (a)  Exhibits - None

                         (b)  No report on Form 8-K was filed by  
                              Registrant during the twenty-six 
                              weeks ended March 1, 1998.     
                                                               



































                                                                   15 of 16

                                                                                
                                                                                


                     CONCORD FABRICS INC. AND SUBSIDIARIES
                     -------------------------------------
                                  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.

                                                       
                                       CONCORD FABRICS INC.                   
                                       ---------------------------------
                                       Registrant
                    



Date: April 8, 1998                    By /s/ Earl Kramer
                                       Earl Kramer
                                       President and Chief Executive 
                                       Officer
 




Date: April 8, 1998                    By /s/ Martin Wolfson            
                                       Martin Wolfson
                                       Senior Vice President-Treasurer
                                       Chief Financial Officer











                  



                                                              16 of 16<PAGE>