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, 1997      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, 1997

Common Stock (no par value)               5,069,892 shares


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<TABLE>
                        PART I. - FINANCIAL INFORMATION

                     GARAN, INCORPORATED AND SUBSIDIARIES

                     CONSOLIDATED STATEMENTS OF EARNINGS
                                  (UNAUDITED)
<CAPTION>
                                                THREE MONTHS ENDED
                                              12/31/97        12/31/96
                                            ____________    _____________
<S>                                         <C>             <C>
Net sales                                   $ 37,711,000    $ 30,993,000

Cost of sales                                 28,894,000      23,911,000
                                            ____________    ____________
   Gross margin on sales                       8,817,000       7,082,000

Selling and administrative expenses            5,462,000       5,376,000

Interest on capitalized leases                    27,000          25,000

Interest income                                 (797,000)       (695,000)
                                             ___________     ___________
    Earnings before provision                  
        for income taxes                       4,125,000       2,376,000

Provision for income taxes                     1,651,000         939,000
                                             ___________     ___________
Net earnings                                 $ 2,474,000     $ 1,437,000
                                             ===========     ===========

Earnings per share data:

   Earnings per share - Basic              $        0.49   $        0.28
                      - Diluted            $        0.48   $        0.28

   Average common shares outstanding- Basic     5,070,000       5,070,000   
                                    - Diluted   5,122,000       5,070,000
 
Dividends paid per share                    $       0.60    $       0.40
</TABLE>
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<TABLE>
                     GARAN, INCORPORATED AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS                   
                                 (UNAUDITED)
<CAPTION>
                                              12/31/97         9/30/97
                                            ____________    _____________
<S>                                         <C>             <C>
ASSETS
Current Assets:
   Cash and cash equivalents                $   9,929,000   $   8,660,000
   U.S. Government securities - short-term     19,793,000      16,223,000
   Accounts receivable, less estimated
     uncollectibles of $517,000 at
     12/31/97 and $510,000 at 9/30/97          16,890,000      31,092,000
   Inventories                                 37,754,000      33,731,000
   Other current assets                         4,251,000       4,308,000
     Total current assets                      88,617,000      94,014,000

U.S. Government Securities - long-term         19,334,000      19,853,000
Property, plant and equipment, less
  accumulated depreciation and amortization    13,194,000      13,470,000
Other assets                                    5,218,000       5,049,000   
     TOTAL                                  $ 126,363,000   $ 132,386,000
                                             ============    ============
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES AND SHAREHOLDERS' EQUITY
<S>                                         <C>             <C>
Current Liabilities:
   Accounts payable                         $   4,616,000   $   6,589,000
   Accrued liabilities                         13,462,000      16,434,000
   Federal and state income taxes payable       2,379,000       2,454,000
   Current portion of capitalized leases          130,000         130,000
     Total current liabilities                 20,587,000      25,607,000

Capitalized lease obligations, net of
 current portion                                2,281,000       2,807,000   
                                                   
Deferred income taxes                           3,276,000       3,186,000
                                            
Shareholders' Equity:
   Preferred stock ($10 par value) 500,000
     shares authorized; none issued 
  Common stock (no par value) 15,000,000 
     shares authorized; 5,069,892 issued at
     12/31/97 and 9/30/97                       2,535,000       2,535,000
  Additional paid-in-capital                    5,821,000       5,821,000
  Retained earnings                            91,863,000      92,430,000   
    Total shareholders' equity                100,219,000     100,786,000
    TOTAL                                   $ 126,363,000   $ 132,386,000
                                             ============    ============
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<TABLE>
                    GARAN, INCORPORATED AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (UNAUDITED)
<CAPTION>
                                                 THREE MONTHS ENDED
                                              12/31/97          12/31/96  
                                            ____________    _____________
<S>                                         <C>             <C>
Cash Flows From Operating Activities:
  Net earnings                              $   2,474,000   $   1,437,000
  Non cash items included in earnings:
    Depreciation and amortization                 703,000         857,000
    Provision for losses on accounts receivable     5,000          11,000  
    Deferred income taxes                          90,000          30,000 
  Changes in assets and liabilities: 
    U.S. Government Securities - short-term    (1,576,000)      1,583,000
    Accounts receivable                        14,197,000      11,068,000
    Inventories                                (4,023,000)     (4,247,000)
    Other current assets                           57,000         215,000
    Accounts payable                           (1,973,000)     (1,107,000)
    Accrued liabilities                        (2,972,000)     (2,502,000)
    Income taxes payable                          (75,000)       (753,000)
    Other assets                                 (169,000)       (395,000)
  Net Cash Flows From Operating Activities      6,738,000       6,197,000   
Cash Flows From Investing Activities:
  Sale of U.S. Gov't securities - long-term     1,032,000       3,037,000
  Purchase of U.S. Gov't securi-
     ties - long-term                         (2,507,000)    (14,872,000) 
  Additions to property plant and equipment     (427,000)       (323,000)
  Proceeds from sales of property,
    plant and equipment                                 0          50,000 
  Net Cash Flows From Investing Activities    (1,902,000)     (12,108,000)

Cash Flows From Financing Activities:
  Payment of dividends                         (3,041,000)     (2,028,000)
  Repayment of capitalized lease obligations     (526,000)        (24,000)  
    Net Cash Flows From Financing Activities   (3,567,000)     (2,052,000)
Increase(Decrease) in Cash and Cash
Equivalents                                     1,269,000      (7,963,000) 
 
Cash and Cash Equivalents At Beginning
  of Period                                     8,660,000      20,587,000 
Cash and Cash Equivalents At End of Period  $   9,929,000   $  12,624,000
                                             ============    ============
Supplemental Disclosures
  Cash Paid During The Period For:
    Interest                                $      27,000   $      25,000
    Income taxes                                1,617,000       1,691,000
                                             ============    ============
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<PAGE>                    GARAN, INCORPORATED AND SUBSIDIARIES

                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               DECEMBER 31, 1997
                                (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 are calculated on the basis of the
weighted average number of common shares outstanding during the period, in
accordance with the provisions of the Statement of Financial Accounting
Standards No. 128 as follows:

                      1997                               1996
            ----------------------------     ------------------------------
            Income   Share     Per Share      Income      Share   Per Share
Basic EPS $2,474,000 5,069,892     $0.49     $1,437,000 5,069,892     $0.28
                               =========                           ========

Effect of dilutive
options                 51,771

           --------------------              --------------------
           $2,474,000 5,121,663    $0.48     $1,437,000 5,069,892     $0.28
           =============================     ==============================


  
3.  Inventories consist of the following:
<TABLE>
<CAPTION>
                                              12/31/97        09/30/97
                                            ____________    _____________
<S>                                         <C>             <C>
Raw Materials                               $  6,845,000    $  6,697,000

Work in process                                7,846,000       6,921,000

Finished Goods                                23,063,000      20,113,000
                                             ___________     ____________
                                            $ 37,754,000    $ 33,731,000
                                             ===========     ============
</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 this 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, 1997, working capital was $68,030,000, a decrease of
$377,000 from September 30, 1997, working capital of $68,407,000.  The
decrease was due primarily to the special dividend of $0.40 per share paid
in December, 1997, offset by an increase in government securities maturing
in less than one year.  Shareholders' equity at December 31, 1997 was
$100,219,000 or $19.77 book value per share, as compared to $100,786,000 or
$19.88 book value per share, at September 30, 1997. 

RESULTS OF OPERATIONS

Three Month Periods Ended December 31, 1997,and December 31, 1996.

Net sales for the three month period ended December 31, 1997, were
$37,711,000 compared to $30,993,000, for the same period last year.  Net
earnings for the three month period this year were $2,474,000, equal to
$0.49 per share, compared to $1,437,000, or $0.28 per share, last year. 
The increase in net sales for the quarter was primarily the result of an
increase in total units shipped.

Gross margin for the three months ended December 31, 1997, was $8,817,000,
or 23.4% of net sales, compared to $7,082,000, or 22.9% of net sales, for 
the comparable period last year.  The increase in gross margin was due
primarily to improvements in absorption of manufacturing expenses as a
result of volume increases.

Selling and administrative expenses for the three months ended 
December 31, 1997, were $5,462,000, or 14.5% of net sales, as compared to
$5,376,000, or 17.4% of net sales, for the comparable period last year. 
The slight dollar increase was a result of investments in internal
operating systems.  The decrease in the percentage of net sales was the
result of the increased sales volume.

Interest income for the three months ended was $797,000, an increase from
$695,000 in the same period last year.  The increase was the result of more
favorable rates of return and a higher level of investment.


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                        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, 1997.

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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, 1998