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      May 31, 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 June 25, 1998.    

                                                               1 of 17 <PAGE>
                  CONCORD FABRICS INC. AND SUBSIDIARIES

                      QUARTERLY REPORT ON FORM 10-Q

                   FOR THE QUARTER ENDED MAY 31, 1998



                               INDEX                      Page Number 

PART I.        Financial Information

     Item 1.   Financial Statements

               Consolidated Statements of Income -    
               Thirty-Nine Weeks Ended May 31, 1998   
               (Unaudited) and June 1, 1997 (Unaudited)             3
                 
               Consolidated Balance Sheets - May 31, 1998     
               (Unaudited), August 31, 1997 (Derived  
               from Audited Financial Statements) and
               June 1, 1997 (Unaudited)                           4-5

               Consolidated Statements of Changes in 
               Stockholders' Equity (Unaudited for the period
               August 31, 1997 to May 31, 1998)                     6
 
               Consolidated Statements of Cash Flows -
               Thirty-Nine Weeks Ended May 31, 1998   
               (Unaudited) and June 1, 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                                       13-15  

Part II.       Other Information

     Item 6.   Exhibits and Reports on Form 8-K                    16

               Signature Page                                      17









                                                              2 of 17 <PAGE>
<TABLE>
Item 1. Financial Statements
        --------------------                                                    
                    
<CAPTION>            CONCORD FABRICS INC. AND SUBSIDIARIES

                       CONSOLIDATED STATEMENTS OF INCOME
                                                  
                                  (Unaudited)

                                   (Note A)


                             For the Thirty-Nine Weeks Ended  For the Thirteen Weeks Ended
                             -------------------------------  ----------------------------
                                    May 31,        June 1,         May 31,       June 1,      
                                      1998           1997            1998          1997  
                                 -----------     -----------    -----------    -----------
<S>                              <C>             <C>            <C>            <C>
Net Sales .....................  $76,462,685     $78,845,460    $25,617,436    $25,972,205 
                                 -----------     -----------    -----------    -----------
Cost of Sales .................   52,780,855      55,381,047     17,719,965     18,388,710
Merchandising Expenses ........    5,769,593       5,308,159      1,987,002      1,702,323
Selling and Shipping Expenses .    5,890,367       6,992,389      2,036,796      2,205,840
General and Administrative 
   Expenses ...................    7,111,090       7,198,442      2,196,152      2,290,216
Interest Expense (Net) ........      569,504         844,051        216,349        253,315   
                                 -----------     -----------    -----------    ----------- 
      Total ...................  $72,121,409     $75,724,088    $24,156,264    $24,840,404    
                                 -----------     -----------    -----------    ----------- 

Earnings before income taxes ..    4,341,276       3,121,372      1,461,172      1,131,801 

Income tax provision ..........    1,758,000       1,295,000        598,000        466,000    
                                 -----------    ------------    -----------    -----------   

Net Earnings ..................  $ 2,583,276     $ 1,826,372    $   863,172    $   665,801  
                                 ===========     ===========    ===========    ===========

Basic Earnings Per Share ......         $.70            $.50           $.23           $.18 
                                 ===========     ===========    ===========    ===========  

Diluted Earnings Per Share ....         $.68            $.49           $.22           $.18
                                 ===========     ===========    ===========    ===========
Weighted average shares used in  
   computing basic earnings per
   share ......................    3,670,015       3,660,418      3,679,832      3,665,107 
                                 ===========     ===========    ===========    ===========
Weighted average shares used in
   computing diluted earnings 
   per share ..................    3,814,804       3,744,191      3,842,129      3,748,880
                                 ===========     ===========    ===========    ===========
 
Dividend per Common Share .....      NONE            NONE           NONE           NONE   
                                 ===========     ===========    ===========    ===========   

                                          
The attached notes are made a part hereof.                                                
                                                                                                 
                                                                                                 
                                                             3 of 17        
</TABLE>                                                                  
                   CONCORD FABRICS INC. AND SUBSIDIARIES

                          CONSOLIDATED BALANCE SHEETS

                                    (Note A)

                                                   August 31,   
                                                      1997   
                                                  (Derived from   
                                      May 31,        Audited          June 1, 
                                       1998         Financial          1997   
A S S E T S                        (Unaudited)     Statements)    (Unaudited) 
-----------                        ------------    ------------  ------------   
Current Assets:
   Cash and cash equivalents ..... $ 1,827,699     $ 7,381,044    $ 7,198,851 
   
   Held to maturity investments     
      (at cost) ..................  18,028,507      13,522,758      7,736,437
  
   Accounts receivable (less
      allowance for doubtful accounts
      of $1,791,000 on May 31,          
      1998, $1,350,000 on August 31,  
      1997, and $2,015,000 on  
      June 1, 1997) ..............  18,508,161      21,311,977     20,476,371 

   Inventories (Note B) ..........  19,980,668      12,903,902     19,478,203  
   Prepaid and refundable income
      taxes ......................     255,000         255,000        532,527
   
   Prepaid expenses and other
     current assets ..............   1,413,091       1,416,839      1,400,154  
   Deferred income taxes .........   1,419,500       1,773,000      1,900,000 
                                   ------------    -----------    -----------
   Total Current Assets .......... $61,432,626     $58,564,520    $58,722,543  

Property, plant and equipment
   (at cost, less accumulated   
   depreciation and amortization of
   $7,603,173 on May 31,      
   1998, $6,400,169 on August 31,  
   1997, and $6,463,549 on  
   June 1, 1997) .................   8,553,478       7,438,260      7,711,854 

Property and plant leased to others  1,775,092       1,889,212      1,927,252
Property, plant, & equipment held for         
   sale - at estimated disposal value
   (Note I) ......................   1,877,319       1,936,969      1,992,400
Other assets .....................   2,970,487       3,205,145      2,626,663 
                                   -----------     -----------    -----------
      T O T A L .................. $76,609,002     $73,034,106    $72,980,712
                                   ===========     ===========    ===========
The attached notes are made a part hereof.                            4 of 17 <PAGE>
                     CONCORD FABRICS INC. AND SUBSIDIARIES

                          CONSOLIDATED BALANCE SHEETS

                                    (Note A)

                                                   August 31,   
                                                      1997  
                                                  (Derived from  
                                      May 31,        Audited          June 1,
                                       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 ..............   6,192,913       4,293,207       6,424,897 
   Accrued expenses and taxes ....   2,270,901       3,478,487       2,599,756  
   Income taxes payable ..........     153,000         -0-             190,000
                                   -----------     -----------     ----------- 
   Total Current Liabilities ..... $11,466,814     $ 7,771,694     $ 9,214,653  

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 ................     538,249         484,249         469,249
                                   -----------     -----------     -----------
   Total Liabilities ............. $29,705,063     $28,805,943     $30,284,902 
Commitments and contingencies      -----------     -----------     ----------- 
   (Notes B and C)
 
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 2,236,356 shares at
      May 31, 1998, 2,209,006     
      shares August 31, 1997  
      and 2,155,706 shares at
      June 1, 1997 ...............   1,118,178       1,104,503       1,077,853 
   Class B - $.50 par value
      authorized 4,000,000 shares,
      issued 1,448,751 shares at
      May 31, 1998, 1,456,101     
      shares at August 31, 1997  
      and 1,509,401 shares at
      June 1, 1997 ...............     724,376         728,051         754,701 
Additional paid-in capital .......   9,274,561       9,192,061       9,192,061
Retained earnings ................  35,786,824      33,203,548      31,671,195
                                   -----------     -----------     -----------
   Total Stockholders' Equity .... $46,903,939     $44,228,163     $42,695,810
                                   -----------     -----------     ----------- 
      T O T A L .................. $76,609,002     $73,034,106     $72,980,712
                                   ===========     ===========     ===========  
The attached notes are made a part hereof.                             5 of 17
                                                                           
<TABLE>                   
                                    CONCORD FABRICS INC.

<CAPTION>                    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                                                            2,583,276   2,583,276

Conversion from
   Class B shares
   to Class A
   shares              7,350      3,675    (7,350)  (3,675)
Exercise of stock
   option             20,000     10,000                        82,500                  92,500
                   -------------------- ------------------ ---------- ----------- -----------
May 31, 1998       2,236,356 $1,118,178 1,448,751 $724,376 $9,274,561 $35,786,824 $46,903,939
                   ==================== ================== ========== =========== ===========

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







The attached notes are made a part hereof.












                                                                             
</TABLE>                                                                 6 of 17
<TABLE>
                      CONCORD FABRICS INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
<CAPTION>                          (Unaudited)
                                     (Note A)

                                                        For the Thirty-Nine Weeks Ended   
                                                       --------------------------------
                                                         May 31,             June 1,   
                                                           1998                1997       
Cash flows from operating activities:                  ------------        ------------
<S>                                                    <C>                 <C>
   Net earnings ....................................   $ 2,583,276         $ 1,826,372 
      Adjustments to reconcile net earnings to net       
        cash provided by operating activities:
         Depreciation and amortization .............     1,217,124           1,153,103
         Deferred income tax .......................       353,500             289,000
         Provision for doubtful accounts ...........       438,649             465,300
         
         Changes in assets:
            Decrease (increase) in:
               Accounts receivable .................     2,365,167           6,155,435  
               Inventories .........................    (7,076,766)         (2,155,024)
               Prepaid and refundable income taxes .       -0-                (109,327)
               Prepaid expenses and other
                 current assets ....................         3,748             220,165
               Other assets ........................       234,658            (169,905)
         Changes in liabilities:
            Increase (decrease) in:
               Accounts payable ....................     1,899,706            (507,580)
               Accrued expenses and taxes ..........    (1,207,586)         (1,768,275)
               Income taxes payable ................       153,000             190,000 
               Other liabilities ...................        54,000              45,000 
                                                       ------------        ------------
   Net cash provided by operating activities:            1,018,476           5,634,264 
                                                       ------------        ------------          
    

Cash flows from investing activity:
   Proceeds from sales of held to maturity
      securities ...................................    15,522,758             982,579
   Purchases of held to maturity securities ........   (20,028,507)         (8,719,016)
   Purchases of property, plant, and equipment .....    (2,218,222)           (633,797)  
   Proceeds from sale of machinery and equipment ...        59,650             161,484
                                                       ------------        ------------ 
Net cash (used in) investing activities: ...........    (6,664,321)         (8,208,750)
                                                       ------------        ------------

Cash flows from financing activities:
   Issuance of common stock (stock options exercised)       92,500              30,313
                                                       ------------        ------------
                                                                                        
NET (DECREASE) IN CASH AND CASH EQUIVALENTS ........    (5,553,345)         (2,544,173)
                                                       ------------        ------------
Cash and cash equivalents - beginning of period ....     7,381,044           9,743,024 
                                                       ------------        ------------
CASH AND CASH EQUIVALENTS - END OF PERIOD ..........   $ 1,827,699         $ 7,198,851  
                                                       ============        ============

The attached notes are made a part hereof.



</TABLE>                                                             7 of 17 <PAGE>
<TABLE>
                      CONCORD FABRICS INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
<CAPTION>                          (Unaudited)
                                     (Note A)
                                                
                                                                             Continued 


                                                        For the Thirty-Nine Weeks Ended   
                                                       --------------------------------
                                                         May 31,             June 1,   
                                                           1998                1997       
                                                       ------------        ------------
Supplemental Information:                                    
Cash Paid for:                                                           
<S>                                                      <C>                 <C>
     Interest ......................................     1,832,000           1,832,000
     Income taxes ..................................     1,515,500             948,000



































The attached notes are made a part hereof.









</TABLE>                                                               8 of 17<PAGE>
                    CONCORD FABRICS INC. AND SUBSIDIARIES
                                                                 
                              NOTES TO FORM 10-Q

                              AS AT MAY 31, 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 thirty-nine weeks ended May 31, 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:

                          May 31,        August 31,        June 1,  
                           1998             1997            1997    
                       ------------     -----------     ------------
Finished goods......... $ 9,658,672     $ 8,164,772      $11,827,192
Work-in-process........   4,622,406       2,527,339        3,335,302
Greige goods and yarn..   5,699,590       2,211,791        4,315,709
                       ------------     -----------     ------------
   Total............... $19,980,668     $12,903,902      $19,478,203 
                       ============     ===========     ============
    
The foregoing inventory amounts at May 31, 1998 and June 1, 1997 were derived
from perpetual inventory records maintained by Registrant.

At May 31, 1998, Registrant had outstanding commitments to purchase greige
goods aggregating $5,200,000.

Note C - Notes Payable - Banks:

At May 31, 1998, Registrant was free of bank debt and had total unused bank
lines of credit aggregating $20,000,000.

The Registrant had approximately $622,000 of letters of credit outstanding as
at May 31, 1998.

Note D - Notes Payable - Insurance Company:

On November 30, 1994, the Registrant obtained a $20,000,000 loan from John
                                                                   9 of 17

                     
                     CONCORD FABRICS INC. AND SUBSIDIARIES

                              NOTES TO FORM 10-Q

                              AS AT MAY 31, 1998

                                  (Unaudited)          


                                                           Continued

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.

The loan agreement requires maintenance of certain financial ratios and
maintenance of tangible net worth of approximately $39,607,000.  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 $5,666,000 at May 31, 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.
                                                                  10 of 17<PAGE>
  
                    CONCORD FABRICS INC. AND SUBSIDIARIES

                              NOTES TO FORM 10-Q            

                              AS AT MAY 31, 1998

                                  (Unaudited)

                                                           Continued 

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
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 17<PAGE>
                                       
                    CONCORD FABRICS INC. AND SUBSIDIARIES

                              NOTES TO FORM 10-Q

                              AS AT MAY 31, 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.

Note J - Year 2000 Compliance:

Registrant expects to be in full compliance with year 2000 issues by December
31, 1998 and does not anticipate incurring significant cost in that
connection.  Costs are expensed as they are incurred.   














                                                                 12 of 17<PAGE>
  
                     CONCORD FABRICS INC. AND SUBSIDIARIES

                                 MAY 31, 1998
  
Item 2..........MANAGEMENT'S DISCUSSION AND ANALYSIS OF
             FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS

OPERATIONS - Thirty-Nine Weeks Ended May 31, 1998 Compared With Thirty-Nine
Weeks Ended June 1, 1997.

Fabric sales decreased by 3%.  This resulted from a 2% decline in yards sold
and a 1% decline in average selling price.  Sales of knitted fabrics
increased; sales of Concord House fabrics declined.

Gross profit margin increased from 29.8% in the prior period to 31% in the
current period primarily due to improved plant performance in the production
of knitted fabrics and the wider distribution of knitted fabrics.  Actual
gross profit increased marginally as the effect of the decline in sales
almost offset the increased gross margin percent.  Gross margins on knitted
fabric sales improved; gross margins on Concord House fabric sales declined.

Selling and shipping expenses declined by 15.8% or approximately $1,102,000. 
Reduced sales in Registrant's current business lines resulted in a $501,000
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 7.7% of sales; in the prior year's
period they were 8.9% of sales.

Interest expense (net) declined by 32.5% as Registrant generated cash flow
from its reduction in business activity and earned interest income from cash
invested in securities.

Earnings before income taxes for the thirty-nine weeks of fiscal 1998 were
$4,341,000 compared with $3,121,000 for the thirty-nine weeks of fiscal 1997. 
Net earnings were $2,583,000 for 1998 and $1,826,000 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 May 31, 1998 Compared With Thirteen Weeks
Ended June 1, 1997.

Fabric sales decreased by 1.4%.  This resulted from a 2% decrease in average
selling price and a 0.7% increase in yards sold.  Sales of knitted fabrics
increased; sales of Concord House fabrics declined.

Gross profit margin increased from 29.2% in fiscal 1997 to 30.8% in fiscal
1998 primarily due to Registrant's elimination of its less profitable product 
                                                                      
                                                                      13 of 17<PAGE>
                     CONCORD FABRICS INC. AND SUBSIDIARIES

                                 MAY 31, 1998

                                                           Continued

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

lines and the implementation of its strategy to focus on the more profitable
aspects of its business (Concord House and knitted fabrics).  Gross margins
on knitted fabric sales improved; gross margins on Concord House fabric sales
declined. 

Merchandising expenses increased by 16.7% as a result of higher design costs. 
Merchandising expenses were 7.8% of sales in the current period and 6.6% of
sales in the prior year's period.
 
Interest expense (net) declined by 14.6% 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 securities.

Earnings before income taxes for the third quarter of fiscal 1998 were
$1,461,000 compared with $1,132,000 for the third quarter of fiscal 1997. 
Net earnings were $863,000 for 1998 and $666,000 for 1997.  The improvements
in earnings before taxes and net earnings resulted primarily from improved
gross profits from sales of knitted fabrics and reduced net interest
expenses.

LIQUIDITY AND CAPITAL RESOURCES

During the thirty-nine weeks of fiscal 1998, Registrant's operations provided
$1,018,000 cash.  $2,218,000 was used to acquire fixed assets ($1,338,000 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).  Registrant made a $4,506,000 net
investment in held to maturity securities.  The sale of machinery and
equipment produced $60,000 in cash; the exercise of stock options $93,000. As
a result, cash decreased by $5,553,000 during the period.  Working capital
declined by $827,000 for the thirty-nine weeks ended May 31, 1998.  It was
reduced by the first $2,850,000 installment due November 30, 1998 on
Registrant's notes payable.  Registrant expects its short-term cash
investments its lines of credit and cash flow from operations to be adequate
to finance operations and meet its cash requirements for the foreseeable
future.    

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 

                                                                14 of 17 <PAGE>
                     CONCORD FABRICS INC. AND SUBSIDIARIES

                                 MAY 31, 1998


                                                           Continued


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


differ materially from those contemplated by such statements.  Such forward
looking statements include references to future quarterly comparisons and the
Registrant's expectations as to the future.






 






























                                                                   15 of 17<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 thirty-nine
                              weeks ended May 31, 1998.     
                                                               



































                                                                   16 of 17<PAGE>





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




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







                  



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