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 December 31, 1998      Commission File No 1-4506

                            GARAN, INCORPORATED
        (Exact name of registrant as specified in its charter)

        VIRGINIA                                       13-5665557
(State of Incorporation)               (I.R.S. Employer Identification No.)

     350 Fifth Avenue, New York, NY                     10118
(Address of principal executive offices)              (Zip Code)

Registrant's telephone number, including area code: (212) 563-2000

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 than 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  [ ]

Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the close of the period covered by this
report.

Class                                   Outstanding December 31, 1998

Common Stock (no par value)               5,139,737 shares

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<TABLE>
                        PART I. - FINANCIAL INFORMATION

                     GARAN, INCORPORATED AND SUBSIDIARIES

                     CONSOLIDATED STATEMENTS OF EARNINGS
                                  (UNAUDITED)
<CAPTION>
                                                THREE MONTHS ENDED
                                             12/31/98        12/31/97
                                            ____________    _____________
<S>                                         <C>             <C>
Net sales                                   $ 39,037,000    $ 37,711,000

Cost of sales                                 28,924,000      28,894,000
                                            ____________    ____________
   Gross margin on sales                      10,113,000       8,817,000

Selling and administrative expenses            5,726,000       5,462,000

Interest on capitalized leases                    24,000          27,000

Interest income                                 (761,000)       (797,000)
                                             ___________     ___________
    Earnings before provision                  
        for income taxes                       5,124,000       4,125,000

Provision for income taxes                     2,076,000       1,651,000
                                             ___________     ___________
Net earnings                                 $ 3,048,000     $ 2,474,000
                                             ===========     ===========

Earnings per share data:

   Earnings per share - Basic              $        0.59   $        0.49
                      - Diluted            $        0.58   $        0.48

   Average common shares outstanding- Basic     5,137,000      5,070,000    
                                    - Diluted   5,177,000      5,122,000
 
Dividends paid per share                    $       0.90    $       0.60
</TABLE>
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<TABLE>
                     GARAN, INCORPORATED AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS                   
                                 (UNAUDITED)
<CAPTION>
                                               12/31/98         9/30/98 
                                            ____________    _____________
<S>                                         <C>             <C>
ASSETS
Current Assets:
   Cash and cash equivalents                $   3,570,000   $   9,599,000
   U.S. Government securities - short-term     25,279,000      22,216,000
   Accounts receivable, less estimated
     uncollectibles of $517,000 at
       12/31/98 and 9/30/98                    22,625,000      42,563,000
   Inventories                                 43,602,000      32,776,000
   Other current assets                         5,223,000       4,962,000
     Total current assets                     100,299,000     112,116,000

U.S. Government Securities - Long-term         18,444,000      15,315,000
Property, plant and equipment, less
  accumulated depreciation and amortization    13,195,000      13,345,000
Other assets                                    5,599,000       5,397,000   
     TOTAL                                  $ 137,537,000   $ 146,173,000
                                             ============    ============
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES AND SHAREHOLDERS' EQUITY
<S>                                         <C>             <C>
Current Liabilities:
   Accounts payable                         $   6,028,000   $   8,555,000
   Accrued liabilities                         14,542,000      18,575,000
   Federal and state income taxes payable       3,491,000       4,000,000
   Current portion of capitalized leases          137,000         137,000
     Total current liabilities                 24,198,000      31,267,000

Capitalized lease obligations, net of
 current portion                                2,143,000       2,170,000   
                                                   
Deferred income taxes                           2,879,000       3,029,000
                                            
Shareholders' Equity:
   Preferred stock ($10 par value) 500,000
     shares authorized; none issued 
  Common stock (no par value) 15,000,000 
     shares authorized; issued 5,139,737
      at 12/31/98 and 5,128,719 at 9/30/98       2,570,000       2,564,000
  Additional paid-in-capital                     6,973,000       6,792,000
  Retained earnings                             98,774,000     100,351,000  

    Total shareholders' equity                 108,317,000     109,707,000
    TOTAL                                   $  137,537,000   $ 146,173,000
                                             =============   =============
</TABLE>
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<TABLE>
                    GARAN, INCORPORATED AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (UNAUDITED)
<CAPTION>
                                                 THREE MONTHS ENDED
                                              12/31/98        12/31/97  
                                            _____________    _____________
<S>                                         <C>             <C>
Cash Flows From Operating Activities:
  Net earnings                              $   3,048,000   $   2,474,000
 Adjustments to reconcile to net cash
  provided by operating activities:
    Depreciation and amortization                 914,000         703,000
    Provision for losses on accounts                    0           5,000  
    receivable
    Deferred income taxes                        (150,000)         90,000 
  Changes in assets and liabilities: 
    U.S. Government Securities - Short-term     1,124,000      (1,576,000)  
    Accounts receivable                        19,938,000      14,197,000
    Inventories                               (10,826,000)     (4,023,000) 
    Other current assets                         (261,000)         57,000
    Accounts payable                           (2,527,000)     (1,973,000) 
    Accrued liabilities                        (4,033,000)     (2,972,000)
    Income taxes payable                         (509,000)        (75,000) 
    Other assets                                 (202,000)       (169,000)
Net Cash Flows Provided by Operating            6,516,000       6,738,000   
  Activities
                                             ____________    ____________

Cash Flows From Investing Activities:
  Sale of U.S. Gov't securities - Long-term     5,404,000       1,032,000
  Purchase of U.S. Gov't securi-
  ties - Long-term                            (12,720,000)     (2,507,000) 
  Additions to property, plant, and              (764,000)      (427,0000)
  equipment
  Net Cash Flows From Investing Activities     (8,080,000)     (1,902,000)
                                             ____________    ____________
Cash Flows From Financing Activities:
  Payment of dividends                         (4,625,000)     (3,041,000)
  Repayment of capitalized lease obligations      (27,000)       (526,000)  
  Proceeds from exercised stock options           187,000               0
    Net Cash Flows From Financing Activities   (4,465,000)     (3,567,000)
    Net increase (decrease)in Cash and Cash
    Equivalents                                (6,029,000)      1,269,000 
    
Cash and Cash Equivalents At Beginning
  of Period                                     9,599,000       8,660,000 
Cash and Cash Equivalents At End of Period  $   3,570,000   $   9,929,000
                                             ============    ============
Supplemental cash flow Disclosures
  Cash Paid During The Period For:
    Interest                                $      24,000   $      27,000
    Income taxes                                2,710,000       5,819,000
                                             ============    ============




</TABLE>

<PAGE>                    GARAN, INCORPORATED AND SUBSIDIARIES

                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               December 31, 1998
                                (UNAUDITED)

1.  In the opinion of management, all adjustments necessary to a fair
statement of the results of operations have been reflected.

2.  Basic and diluted earnings per share, which are calculated on the basis
of the weighted average number of common shares outstanding during the
period in accordance with the provisions of the Statements of Financial
Accounting Standards No. 128, are as follows:

                      1998                               1997
           -----------------------------    -------------------------------
            Income   Shares    Per Share      Income      Shares  Per Share
Basic EPS $3,048,000 5,136,731     $0.59   $2,474,000    5,069,892    $0.49
                               =========                           ========

Effect of 
dilutive options        39,872                              51,771

           -------------------              ----------------------
          $3,048,000 5,176,603     $0.58   $2,474,000    5,121,663    $0.48
           =============================    ===============================


  
3.  Inventories consist of the following:
<TABLE>
<CAPTION>
                                               12/31/98        09/30/98
                                            ____________    _____________
<S>                                         <C>             <C>
Raw Materials                               $ 6,618,000      $ 7,305,000

Work in Process                               9,133,000        5,560,000

Finished Goods                               27,851,000       19,911,000
                                            ___________     ____________
                                            $43,602,000      $32,776,000
                                            ===========      ===========
</TABLE>


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ITEM 2.
                    GARAN, INCORPORATED AND SUBSIDIARIES
                   MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Certain statements included in Management's Discussion and Analysis of
Financial Condition and Results of Operations and elsewhere in this report
contain "forward-looking statements" based upon management's expectations
and beliefs concerning future events impacting the registrant.  Actual
results of operations or financial condition may differ because of business
conditions in the apparel industry generally, competition, the addition or
loss of significant customers or personnel, the timing of orders placed by
the registrant's customers, and such other risk factors as may be
identified from time to time in the registrant's filings with the
Securities and Exchange Commission.

FINANCIAL CONDITION

     At December 31, 1998, working capital was $76,101,000 a decrease of
$4,748,000 from working capital at September 30, 1998, of $80,849,000.
Substantially all of the decrease was due to the special dividend of $0.70
per share, in addition to the regular quarterly dividend of $0.20 per
share, which were paid in December, 1998.  Shareholders' equity at December
31, 1998, was $108,317,000, or $21.07 book value per share, as compared to
$109,707,000, or $21.39 book value per share, at September 30, 1998. 

RESULTS OF OPERATIONS

Three Month Period Ended December 31, 1998.

Net sales for the three month period ended December 31, 1998, were
$39,037,000 compared to $37,711,000, for the same period in fiscal 1998. 
Net earnings for the three month period were $3,048,000, equal to $0.59 per
share, compared to $2,474,000, or $0.49 per share, last year.  The increase
in net sales for the quarter was primarily a result of an increase in total
units shipped.

Gross margin for the three months ended December 31, 1998, was $10,113.000, 
or 25.9% of net sales, compared to $8,817,000, or 23.4% of net sales, for 
the comparable period in fiscal 1998.  The increase in gross margin in
dollar terms was due primarily to the increased sales volume and as a
percentage of sales was due to improvements in operating efficiency.

Selling and administrative expenses for the three months ended 
December 31, 1998, were $5,726,000, or 14.7% of net sales, as compared to
$5,462,000, or 14.5% of net sales, for the comparable period in fiscal
1998.  The increase in selling and administrative expenses was a result of
continued investment in improving internal operating systems and increases
in expenses related to volume.

Year 2000

The Company's principal MIS computer systems consist of (1) accounting
software, such as payroll, accounts receivable, and general ledger, (2)
electronic data interchange ("EDI") for receiving orders, invoicing, and
the like between the registrant and its major customers and suppliers, and
(3) customer order management systems.  In addition, the registrant uses
computer systems in its manufacturing operations.  The registrant has
purchased software to replace all of the components of its MIS systems
which were not Year 2000 compliant and is implementing the Year 2000
compliant EDI software for 1, 2 and 3 above.  The registrant does not
require any material change to its manufacturing systems for Year 2000
compliance.  Although the registrant could incur operating problems if it
were unable to receive orders from its customers through EDI if the
customer is not EDI compliant, the registrant believes that its major
customers either have completed or are in the process of completing Year
2000 compliance projects with respect to their EDI systems.  The entire
cost of the registrant's Year 2000 compliance program is not material to
the registrant, and the Company anticipates that all of its MIS computer
systems will be Year 2000 compliant by June 30, 1999.

Qualitative and Quantitative Disclosure about Market Risk

The registrant does not believe it is exposed to market risks with respect
to any of its investments; the registrant does not utilize market rate
sensitive instruments for trading or other purposes.  The registrant's
investments consist primarily of U.S. Government securities with maturities
of four years of less.

<PAGE>
                        PART II. - OTHER INFORMATION


ITEM 6.   Exhibits and Reports on Form 8-K.

          a.  Exhibits
      
              Exhibit 27.  Financial Data Schedule

          b.  Reports on Form 8-K

              No reports have been filed on Form 8-K during the quarter     
              ended December 31, 1998.

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                              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.


                                  GARAN, INCORPORATED


                                  BY:Seymour Lichtenstein
                                     Seymour Lichtenstein 
                                     Principal Executive Officer


                                  BY:William J. Wilson
                                     William J. Wilson 
                                     Principal Financial Officer


DATE: February 12, 1999