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 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 March 31, 1998

Common Stock (no par value)               5,123,094 shares

<PAGE>
<TABLE>
                        PART I. - FINANCIAL INFORMATION

                     GARAN, INCORPORATED AND SUBSIDIARIES

                     CONSOLIDATED STATEMENTS OF EARNINGS
                                  (UNAUDITED)
<CAPTION>
                                                THREE MONTHS ENDED
                                              3/31/98         3/31/97
                                            ____________    _____________
<S>                                         <C>             <C>
Net sales                                   $ 41,098,000    $ 37,611,000

Cost of sales                                 31,197,000      28,458,000
                                            ____________    ____________
   Gross margin on sales                       9,901,000       9,153,000

Selling and administrative expenses            5,632,000       5,597,000

Interest on capitalized leases                    29,000          27,000

Interest income                                 (817,000)       (689,000)
                                             ___________     ___________
    Earnings before provision                  
        for income taxes                       5,057,000       4,218,000

Provision for income taxes                     2,035,000       1,677,000
                                             ___________     ___________
Net earnings                                 $ 3,022,000     $ 2,541,000
                                             ===========     ===========

Earnings per share data:

   Earnings per share - Basic              $        0.59   $        0.50
                      - Diluted            $        0.59   $        0.50

   Average common shares outstanding- Basic     5,090,000       5,070,000   
                                    - Diluted   5,129,000       5,070,000
 
Dividends paid per share                    $       0.20    $        0.20
</TABLE>
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<PAGE>
<TABLE>
                     GARAN, INCORPORATED AND SUBSIDIARIES

                     CONSOLIDATED STATEMENTS OF EARNINGS
                                  (UNAUDITED)
<CAPTION>
                                                SIX MONTHS ENDED
                                              3/31/98         3/31/97
                                            ____________    _____________
<S>                                         <C>             <C>
Net sales                                   $ 78,809,000    $ 68,604,000

Cost of sales                                 60,091,000      52,369,000
                                            ____________    ____________
   Gross margin on sales                      18,718,000      16,235,000

Selling and administrative expenses           11,094,000      10,973,000

Interest on capitalized leases                    56,000          52,000

Interest income                               (1,614,000)     (1,384,000)
                                             ___________     ___________
    Earnings before provision                  
        for income taxes                       9,182,000       6,594,000

Provision for income taxes                     3,686,000       2,616,000
                                             ___________     ___________
Net earnings                                 $ 5,496,000     $ 3,978,000
                                             ===========     ===========

Earnings per share data:

   Earnings per share - Basic              $        1.08   $        0.78
                      - Diluted            $        1.07   $        0.78

   Average common shares outstanding- Basic     5,090,000       5,070,000   
                                    - Diluted   5,129,000       5,070,000
 
Dividends paid per share                    $       0.80    $       0.60
</TABLE>
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<TABLE>
                     GARAN, INCORPORATED AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS                   
                                 (UNAUDITED)
<CAPTION>
                                               3/31/98         9/30/97 
                                            ____________    _____________
<S>                                         <C>             <C>
ASSETS
Current Assets:
   Cash and cash equivalents                $   5,472,000   $   8,660,000
   U.S. Government securities - short-term     22,562,000      16,223,000
   Accounts receivable, less estimated
     uncollectibles of $518,000 at
      3/31/98 and $510,000 at 9/30/97          21,386,000      31,092,000
   Inventories                                 42,700,000      33,731,000
   Other current assets                         4,209,000       4,308,000
     Total current assets                      96,329,000      94,014,000

U.S. Government Securities - Long-term         18,131,000      19,853,000
Property, plant and equipment, less
  accumulated depreciation and amortization    13,867,000      13,470,000
Other assets                                    4,895,000       5,049,000   
     TOTAL                                  $ 133,222,000   $ 132,386,000
                                             ============    ============
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES AND SHAREHOLDERS' EQUITY
<S>                                         <C>             <C>
Current Liabilities:
   Accounts payable                         $   8,079,000   $   6,589,000
   Accrued liabilities                         14,724,000      16,434,000
   Federal and state income taxes payable       1,838,000       2,454,000
   Current portion of capitalized leases          130,000         130,000
     Total current liabilities                 24,771,000      25,607,000

Capitalized lease obligations, net of
 current portion                                2,203,000       2,807,000   
                                                   
Deferred income taxes                           3,126,000       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; issued 5,123,094
      at 3/31/98 and 5,069,892 at 9/30/97       2,562,000       2,535,000
  Additional paid-in-capital                    6,698,000       5,821,000
  Retained earnings                            93,862,000      92,430,000   
    Total shareholders' equity                103,122,000     100,786,000
    TOTAL                                   $ 133,222,000   $ 132,386,000
                                             ============    ============
</TABLE>
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<TABLE>
                    GARAN, INCORPORATED AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (UNAUDITED)
<CAPTION>
                                                 SIX MONTHS ENDED
                                               3/31/98          3/31/97  
                                            ____________    _____________
<S>                                         <C>             <C>
Cash Flows From Operating Activities:
  Net earnings                              $   5,496,000   $   3,978,000
  Non cash items included in earnings:
    Depreciation and amortization               1,481,000       1,550,000
    Provision for losses on accounts receivable    10,000          51,000  
    Deferred income taxes                         (60,000)         33,000 
  Changes in assets and liabilities: 
    U.S. Government Securities - Short-term    (3,877,000)     (2,297,000)
    Accounts receivable                         9,696,000       2,585,000
    Inventories                                (8,969,000)     (3,117,000)
    Other current assets                           99,000         771,000
    Accounts payable                            1,490,000      (  265,000)
    Accrued liabilities                        (1,710,000)     (  428,000)
    Income taxes payable                         (616,000)       ( 37,000)
    Other assets                                  154,000        (561,000)
  Net Cash Flows From Operating Activities      3,194,000       2,263,000   
Cash Flows From Investing Activities:        ____________    ____________
  Sale of U.S. Gov't securities - Long-term     4,054,000       6,028,000
  Purchase of U.S. Gov't securi-
     ties - Long-term                          (4,794,000)    (14,650,000) 
  Additions to property, plant, and equipment  (1,878,000)       (576,000)
  Proceeds from sales of property,
    plant, and equipment                                0          11,000 
  Net Cash Flows From Investing Activities    (2,618,000)     ( 9,187,000)
                                             ____________   ______________
Cash Flows From Financing Activities:
  Payment of dividends                         (4,064,000)     (3,042,000)
  Repayment of capitalized lease obligations     (604,000)        (44,000) 
Proceeds from sale of common stock                904,000               0
    Net Cash Flows From Financing Activities   (3,764,000)     (3,086,000)
Decrease in Cash and Cash
Equivalents                                    (3,188,000)    (10,010,000) 
 
Cash and Cash Equivalents At Beginning
  of Period                                     8,660,000      20,587,000 
Cash and Cash Equivalents At End of Period  $   5,472,000   $  10,577,000
                                             ============    ============
Supplemental Disclosures
  Cash Paid During The Period For:
    Interest                                $      56,000   $      52,000
    Income taxes                                4,470,000       2,680,000
                                             ============    ============




</TABLE>

<PAGE>                    GARAN, INCORPORATED AND SUBSIDIARIES

                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               MARCH 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 $5,496,000 5,090,000     $1.08     $3,978,000 5,070,000     $0.78
                               =========                           ========

Effect of 
dilutive options        39,000

           --------------------              --------------------
           $5,496,000 5,129,000    $1.07     $3,978,000 5,070,000     $0.78
           =============================     ==============================


  
3.  Inventories consist of the following:
<TABLE>
<CAPTION>
                                               3/31/98        09/30/97
                                            ____________    _____________
<S>                                         <C>             <C>
Raw Materials                               $ 7,579,000     $  6,697,000

Work in Process                               6,890,000        6,921,000

Finished Goods                               28,231,000       20,113,000
                                            ___________     ____________
                                            $42,700,000     $ 33,731,000
                                             ===========     ============
</TABLE>


<PAGE>
<PAGE>
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 March 31, 1998, working capital was $71,558,000, an increase of
$3,151,000 from working capital at September 30, 1997 of $68,407,000.  The
increase was due primarily to a decrease in accounts receivable and
government securities maturing in less than one year net of a seasonal
increase in inventory.  Shareholders' equity at March 31, 1998, was
$103,122,000, or $20.13 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 and Six Month Periods Ended March 31, 1998, and March 31, 1997.

Net sales for the second quarter of fiscal 1998 were $41,098,000, compared
to $37,611,000, for the same period in fiscal 1997.  Net earnings for the
second quarter were $3,022,000, equal to $0.59 per share, compared to
$2,541,000, or $0.50 per share, in fiscal 1997.  Net sales for the first
six months of fiscal 1998 were $78,809,000, compared to $68,604,000 in
fiscal 1997.  Net earnings for the six month period were $5,496,000, equal
to $1.08 per share, compared to $3,978,000, or $0.78 per share, in fiscal
1997.  The increase in net sales for both periods was primarily a result of
an increase in total units shipped.

Gross margin for the three months ended March 31, 1998, was $9,901,000,
or 24.1% of net sales, compared to $9,153,000, or 24.3% of net sales, for 
the comparable period in fiscal 1997.  Gross margin for the six months
ended March 31, 1998, was $18,718,000, or 23.8% of net sales, compared to
$16,235,000 or 23.7% of net sales, for the comparable period in fiscal
1997.  The dollar increase in gross margin was due primarily to the
increased sales volume.

Selling and administrative expenses for the three months ended 
March 31, 1998, were $5,632,000, or 13.7% of net sales, as compared to
$5,597,000, or 14.9% of net sales, for the comparable period in fiscal
1997.  Selling and administrative expenses for the six months ended March
31, 1998, were $11,094,000, or 14.1% of net sales, as compared to
$10,973,000, or 16.0% of net sales, for the comparable period in fiscal
1997.  Because the dollar value remained constant, the decrease in selling
and administrative expenses as a percentage of net sales was the result of
increased sales volume.

<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 March 31, 1998.

<PAGE>
<PAGE>
                              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: May 13, 1998