SECURITIES AND EXCHANGE COMMISSION
                                     
                          Washington, D.C. 20549
                                     
                                 FORM 10-Q
                                     
(Mark One)

[X]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
      SECURITIES EXCHANGE ACT OF 1934

             For the quarterly period ended September 30, 1996

                                    OR
                                     
[ ]   TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
      SECURITIES EXCHANGE ACT OF 1934

           For the transition period from ________ to _________.
                                     
                       Commission File Number 0-1349
                                     
                               Stanhome Inc.
___________________________________________________________________________
          (Exact name of registrant as specified in its charter)
                                     

            Massachusetts                                04-1864170
____________________________________                ______________________
(State or other jurisdiction of                     (I.R.S. Employer
 incorporation or organization)                     Identification No.)


333 Western Avenue, Westfield, Massachusetts                01085
___________________________________________________________________________
    (Address of principal executive offices)             (Zip Code)

Registrant's telephone number, including area code:         413-562-3631
___________________________________________________________________________


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 [_]


                                                September 30,

                                          1996            1995
                                          ____            ____

Shares Outstanding:

      Common Stock with
      Associated Rights                17,899,443      18,590,589



                                                Total number of pages
                                                contained herein 31

                                                Index to Exhibits is
                                                on page 21



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

                   CONSOLIDATED CONDENSED BALANCE SHEETS

                 SEPTEMBER 30, 1996 and DECEMBER 31, 1995
                                (Unaudited)
<CAPTION>
                                          September 30,     December 31,
                                              1996             1995
                                              ----             ----
<S>                                       <C>              <C>
ASSETS                                                     
                                                           
CURRENT ASSETS:                                            
                                                           
  Cash and certificates of deposit         $ 22,731,932     $ 23,053,926
                                                           
  Notes and accounts receivable, net        210,194,141      158,572,959
                                                           
  Inventories                               122,244,630      114,294,928
                                                           
  Prepaid advertising                        32,935,649       39,665,306
                                                           
  Other prepaid expenses                     10,052,827        6,784,465
                                           ------------     ------------
     Total current assets                   398,159,179      342,371,584
                                           ------------     ------------
                                                           
                                                           
PROPERTY, PLANT AND EQUIPMENT, at cost      134,570,735      131,795,141
                                                           
  Less - Accumulated depreciation and                      
           amortization                      75,895,746       70,947,871
                                           ------------     ------------
                                             58,674,989       60,847,270
                                           ------------     ------------
                                                           
OTHER ASSETS:                                              
                                                           
  Goodwill and other intangibles, net       119,366,869      119,826,382
  Other                                      13,813,776       11,420,987
                                           ------------     ------------
                                            133,180,645      131,247,369
                                           ------------     ------------
                                           $590,014,813     $534,466,223
                                           ============     ============
<FN>
The accompanying notes are an integral part of these condensed financial
statements.
</TABLE>





                                    -2-
<PAGE>
<TABLE>
                               STANHOME INC.

                   CONSOLIDATED CONDENSED BALANCE SHEETS

                 SEPTEMBER 30, 1996 and DECEMBER 31, 1995
                                (Unaudited)
<CAPTION>
                                            September 30,      December 31,
                                                1996              1995
                                                ----              ----
<S>                                        <C>               <C>
LIABILITIES AND SHAREHOLDERS' EQUITY                         
                                                             
CURRENT LIABILITIES:                                         
                                                             
  Notes and loans payable                   $135,924,087      $ 74,864,065
                                                             
  Accounts payable                            54,106,279        64,880,028
                                                             
  Federal, state and foreign taxes                           
    on income                                 39,531,516        28,758,277
                                                             
  Accrued expenses--                                         
    Payroll and commissions                   12,002,823        13,658,026
    Royalties                                  8,366,111         8,587,986
    Pensions and profit sharing                6,621,198         8,610,616
    Vacation, sick and                                       
     postretirement benefits                   6,382,517         6,979,623
    Other                                     35,594,077        36,106,020
                                            ------------      ------------
     Total current liabilities               298,528,608       242,444,641
                                            ------------      ------------
LONG-TERM LIABILITIES:                                       
  Postretirement benefits                     13,346,728        12,749,258
  Foreign employee severance obligations      12,940,387        12,482,097
                                            ------------      ------------
     Total long-term liabilities              26,287,115        25,231,355
                                            ------------      ------------
SHAREHOLDERS' EQUITY:                                        
  Common stock                                 3,153,530         3,153,530
  Capital in excess of par value              44,729,118        43,098,856
  Retained earnings                          396,854,413       385,008,394
  Cumulative translation adjustments       (  27,653,910)    (  27,409,482)
                                            ------------      ------------
                                             417,083,151       403,851,298
  Less - Shares held in                                      
   treasury, at cost                         151,884,061       137,061,071
                                            ------------      ------------
     Total shareholders' equity              265,199,090       266,790,227
                                            ------------      ------------
                                            $590,014,813      $534,466,223
                                            ============      ============
<FN>
The accompanying notes are an integral part of these condensed financial
statements.
</TABLE>

                                    -3-
<PAGE>
<TABLE>
                               STANHOME INC.

                CONSOLIDATED CONDENSED STATEMENTS OF INCOME

      FOR THE QUARTERS ENDED SEPTEMBER 30, 1996 and 1995 (Unaudited)


<CAPTION>
                                              1996             1995
                                              ----             ----
<S>                                      <C>              <C>
NET SALES                                 $209,931,607     $205,706,026
                                                          
COST OF SALES                               96,588,837       92,267,826
                                          ------------     ------------
GROSS PROFIT                               113,342,770      113,438,200
                                                          
SELLING, GENERAL AND ADMINISTRATIVE                       
  EXPENSE                                   89,747,168       90,037,720
                                          ------------     ------------
OPERATING PROFIT                            23,595,602       23,400,480
  Interest expense                       (   2,468,267)   (   1,928,605)
  Other expense, net                     (   1,031,389)   (     744,444)
                                          ------------     ------------
INCOME BEFORE INCOME TAXES                  20,095,946       20,727,431
                                                          
  Income taxes                               8,642,931        8,859,754
                                          ------------     ------------
NET INCOME                                $ 11,453,015     $ 11,867,677
                                          ============     ============
                                                          
EARNINGS PER COMMON SHARE,                                
  Primary and fully diluted                      $ .64            $ .63

















<FN>
The accompanying notes are an integral part of these condensed financial
statements.
</TABLE>



                                   -4-
<PAGE>
<TABLE>
                               STANHOME INC.

     CONSOLIDATED CONDENSED STATEMENTS OF INCOME AND RETAINED EARNINGS

     FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 and 1995 (Unaudited)

<CAPTION>
                                            1996              1995
                                            ----              ----
<S>                                    <C>               <C>
NET SALES                               $610,695,506      $600,064,554
                                                         
COST OF SALES                            269,777,193       258,261,290
                                        ------------      ------------
GROSS PROFIT                             340,918,313       341,803,264
                                                         
SELLING, GENERAL AND ADMINISTRATIVE                      
  EXPENSE                                284,307,875       281,631,069
                                        ------------      ------------
OPERATING PROFIT                          56,610,438        60,172,195
  Interest expense                     (   6,419,379)    (   5,207,637)
  Other expense, net                   (   2,614,326)    (   1,340,622)
                                        ------------      ------------
INCOME BEFORE INCOME TAXES                47,576,733        53,623,936
                                                         
  Income taxes                            21,102,434        24,136,822
                                        ------------      ------------
NET INCOME                                26,474,299        29,487,114
                                                         
RETAINED EARNINGS, beginning                             
  of period                              385,008,394       362,946,840
                                                         
  Cash dividends, $.81 per share                         
    in 1996 and $.795 per share                          
    in 1995                            (  14,628,280)    (  14,938,849)
                                        ------------      ------------
RETAINED EARNINGS, end of period        $396,854,413      $377,495,105
                                        ============      ============
                                                         
EARNINGS PER COMMON SHARE:                               
  Primary                                      $1.46             $1.56
  Fully diluted                                $1.46             $1.55
                                                         






<FN>
The accompanying notes are an integral part of these condensed financial
statements.
</TABLE>




                                    -5-
<PAGE>
<TABLE>
                               STANHOME INC.

              CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

     FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 and 1995 (Unaudited)

<CAPTION>
                                                 1996           1995
                                                 ----           ----
<S>                                          <C>            <C>
OPERATING ACTIVITIES:                                       
  Net cash used by operating activities      ($26,622,773)  ($42,613,521)
                                              -----------    -----------
INVESTING ACTIVITIES:                                       
  Purchase of property, plant                               
   and equipment                             (  6,406,773)  (  8,380,613)
  Payments for acquisition of businesses,                   
   net of cash acquired                      (  1,566,165)  (  1,402,840)
  Proceeds from sale of property,                           
   plant and equipment                          2,603,924      1,274,098
  Other, principally marketable                             
   securities                                           -   (     12,165)
                                              -----------    -----------
  Net cash used by investing activities      (  5,369,014)  (  8,521,520)
                                              -----------    -----------
FINANCING ACTIVITIES:                                       
  Cash dividends                             ( 14,628,280)  ( 14,938,849)
  Exchanges and purchases of common stock    ( 15,178,033)  ( 19,438,450)
  Notes and loans payable                      59,650,937     86,421,953
  Exercise of stock options                     1,692,019      2,026,183
  Other common stock issuance                     293,286        376,447
                                              -----------    -----------
  Net cash provided by                                      
   financing activities                        31,829,929     54,447,284
                                              -----------    -----------
  Effect of exchange rate changes on                        
   cash and cash equivalents                 (    160,136)       211,870
                                              -----------    -----------
  Increase/(decrease) in cash and                           
   cash equivalents                          (    321,994)     3,524,113
  Cash and cash equivalents,                                
   beginning of year                           23,051,926     19,349,839
                                              -----------    -----------
  Cash and cash equivalents,                                
   end of quarter                             $22,729,932    $22,873,952
                                              ===========    ===========
                                                            
SUPPLEMENTAL CASH FLOW DATA                                 
  Cash paid for:                                            
    Interest                                  $ 5,879,821    $ 4,926,419
    Income taxes                              $10,414,538    $34,296,980
                                                            
<FN>
The accompanying notes are an integral part of these condensed financial
statements.
</TABLE>

                                    -6-
<PAGE>
                               STANHOME INC.

           NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

     The consolidated condensed financial statements and related notes

included herein have been prepared by the Company, without audit except for

the December 31, 1995 condensed balance sheet, which was derived from the

Annual Report on Form 10-K, pursuant to the rules and regulations of the

Securities and Exchange Commission.  Certain information and footnote

disclosures normally included in financial statements prepared in

accordance with generally accepted accounting principles have been

condensed or omitted pursuant to such rules and regulations, although the

Company believes that the disclosures are adequate to make the information

presented not misleading.  The information furnished reflects all normal

recurring adjustments which are, in the opinion of management, necessary to

a fair statement of the results for the interim periods.  It is suggested

that these condensed financial statements be read in conjunction with the

financial statements and related notes to consolidated financial statements

included in the Company's Annual Report on Form 10-K for the year ended

December 31, 1995.

1.  ACCOUNTING POLICIES:

     The Company's financial statements for the three and nine months ended

September 30, 1996 have been prepared in accordance with the accounting

policies described in Note 1 to the December 31, 1995 consolidated

financial statements included in the Company's 1995 Annual Report on Form

10-K.  The Company considers all highly liquid securities, including

certificates of deposit with maturities of three months or less, when

purchased, to be cash equivalents.  Notes and accounts receivable were net

of reserves for uncollectible amounts, returns and allowances of

$22,097,000 at September 30, 1996 and $20,741,000 at December 31, 1995.

                                    -7-

<PAGE>

     The Company recognizes revenue as merchandise is turned over to the

shipper and a provision for anticipated merchandise returns and allowances

is recorded based upon historical experience.  Amounts billed to customers

for shipping and handling orders are netted against the associated costs.



2.  INVENTORY CLASSES:

     The major classes of inventories at September 30 and December 31

were as follows (in thousands):

                                           September 30,    December 3l,

                                               1996            1995
                                               ----            ----
     Raw materials and supplies             $  8,447        $  7,312
     Work in process                             911           1,237
     Finished goods in transit                15,595          16,215
     Finished goods                           97,292          89,531
                                            --------        --------
                                            $122,245        $114,295
                                            ========        ========
3.  OTHER EXPENSE, NET:

     Other expense, net for the quarters and nine months ended September

30, 1996 and 1995 consists of the following (in thousands):

                                           Quarters Ended September 30

                                           ---------------------------
                                               1996             1995
                                               ----             ----
     Interest income                          $  445           $  613
     Other assets amortization               ( 1,072)         ( 1,045)
     Other items, net                        (   404)         (   313)
                                              ------           ------
                                             ($1,031)         ($  745)
                                              ======           ======

                                           Nine Months Ended September 30
                                           ------------------------------
                                               1996             1995
                                               ----             ----
     Interest income                          $1,671           $2,119
     Other assets amortization               ( 3,425)         ( 3,062)
     Other items, net                        (   860)         (   398)
                                              ------           ------
                                             ($2,614)         ($1,341)
                                              ======           ======
                                    -8-

<PAGE>

4.  EARNINGS PER COMMON SHARE (BASIS OF CALCULATION):

     Earnings per common share are based on the average number of

common shares outstanding and common share equivalents for the periods

covered.  For the third quarters of 1996 and 1995 and the nine months

ended September 30, 1996, there were no differences in earnings per

share between primary and fully diluted earnings per share

computations.  There was a slight difference for the nine months ended

September 30, 1995 where 18,888,161 shares were utilized as the average

number of shares for the primary computation, including common share

equivalents of 40,345.  For the third quarter, the average number of

shares utilized in the fully diluted computation was 17,950,076 and

18,840,554 shares for 1996 and 1995, respectively.  The average number

of shares utilized in the fully diluted computation for the nine months

ended September 30 was 18,184,175 for 1996 and 18,984,314 for 1995.

Both 1996 fully diluted computations included common share equivalents

of 51,102 and both 1995 fully diluted computations included common

share equivalents of 136,498.  The lower average number of shares for

the third quarter and first nine months of 1996 primarily resulted from

the repurchase of shares as part of the Company's repurchase program.



5.  FINANCIAL INSTRUMENTS:

     The Company enters into various short-term foreign exchange

agreements during the year, all of which are held for purposes other than

trading.  The purpose of the Company's foreign currency hedging activities

is to protect the Company from risk that the eventual settlement of

foreign currency transactions will be adversely affected by changes in

exchange rates.  The Company's various subsidiaries import products in



                                    -9-

<PAGE>

foreign currencies and from time to time will enter into agreements or

build foreign currency deposits as a partial hedge against currency

fluctuations on inventory purchases.  Gains and losses on these agreements

are deferred and recorded as a component of cost of sales when the related

inventory is sold.  At September 30, 1996, there were no open inventory

purchase agreements and deferred amounts were not material.  The Company

makes short-term foreign currency intercompany loans to various

international subsidiaries and utilizes agreements to fully hedge these

transactions against currency fluctuations.  The cost of these agreements

is included in the interest charged to the subsidiaries and expensed

monthly as the interest is accrued.  The intercompany interest eliminates

upon consolidation and any gains and losses on the agreements are recorded

as a component of other expense.  All of the outstanding agreements as of

September 30, 1996 are to hedge intercompany loans.  The Company receives

dividends, technical service fees, royalties and other payments from its

subsidiaries and licensees.  From time to time, the Company will enter

into foreign currency forward agreements as a partial hedge against

currency fluctuations on these current receivables.  Gains and losses are

recognized or the credit or debit offsets the foreign currency payables.

As of September 30, 1996, net deferred amounts on outstanding agreements

were not material.  The outstanding agreement amounts (notional value) at

September 30, 1996, are as follows (in thousands):


                   Canada                 $ 6,607
                   Germany                  3,934
                   U.S.                     3,500
                                          -------
                   Total                  $14,041
                                          =======




                                   -10-

<PAGE>

                               STANHOME INC.

             QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 1996

        MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

                         AND RESULTS OF OPERATIONS



     BUSINESS SEGMENTS of the Company's operations are summarized on Page

19.  A discussion and analysis of the segments follows:



GIFTWARE

     Giftware Group sales increased 5% for the third quarter and 2% for the

first nine months primarily due to unit volume growth in the United States

from existing lines and from incoming goods for open orders.  Additionally,

sales from a new business acquired in France during the first quarter of

1996 accounted for approximately 1% of the sales increase for the third

quarter and first nine months.  International sales increased primarily due

to the new business acquired in France and represented approximately 15% of

year-to-date sales in both 1996 and 1995.  Year-to-date 1996 sales of the

Precious Moments line represented 40% of total sales compared to 46% in

1995 and the Cherished Teddies line represented 18% of year-to-date sales

in 1996 compared to 13% in 1995.  Operating profit for the first nine

months as a percentage of sales was 15.2% in 1996 compared to 15.5% in

1995.  The decrease was due to higher cost of sales (approximately .9%)

primarily from an unfavorable product mix.  All of the operating profit

decrease was from international markets.  Operating profit in the United

States was up approximately 1%.







                                   -11-

<PAGE>

DIRECT RESPONSE

     Direct Response Group sales increased 2% in the third quarter and 3%

for the nine months due to unit volume growth from increased product

offerings primarily in the figural categories.  Year-to-date doll sales

decreased to 19% of 1996 sales compared to 32% in 1995 and plate sales

decreased to 31% of sales in 1996 compared to 41% in 1995.  The Precious

Moments line represented 11% of year-to-date 1996 sales compared to 12% in

1995 and the Cherished Teddies line represented 10% of year-to-date sales

in both 1996 and 1995.  International sales increased for the quarter

primarily due to timing of shipments but sales decreased 8% for the year-to-

date and operating losses increased substantially for the quarter and year-

to-date due to higher selling, marketing and advertising expenses.

International sales represented approximately 10% of the first nine months

sales in 1996 and 1995.  Market conditions for the direct response

businesses for the Company's products continue to be soft and very

competitive with many product offerings and ads going against weakness in

consumer spending and credit.  Operating losses decreased for the third

quarter and first nine months due to the return to profitability in 1996 in

the United States.  For the first nine months, cost of sales as a

percentage of sales increased 1.6% due to product mix and higher product

returns.  For the first nine months, total selling, general and

administrative expenses decreased as a percentage of sales due to a lower

percentage of advertising (46% of sales in 1996 versus 52% in 1995) due to

product sales mix and a higher percentage of sales from existing customer

lists, that have a much higher rate of advertising productivity.  Partially

offsetting the improved advertising ratio was a higher level of selling,

general and administrative expenses, including higher bad debts.



                                   -12-

<PAGE>

DIRECT RESPONSE - NEW BUSINESSES

     Direct Response New Businesses represent the cost in the United States

to develop and test existing products and new product offerings in the

potentially profitable catalog and telephone response markets.  The catalog

tests are targeted for the fourth quarter and, in total, are expected to be

unprofitable due to the development costs.  The results of the test in the

fourth quarter will determine the future course of action for these

programs.

DIRECT SELLING

     Total Direct Selling sales for the quarter and first nine months were

below 1995 by 8% and 2%, respectively.  For the 1996 quarter and first

nine months, sales, principally in Europe, include $1.6 million and $2.8

million, respectively, from extending the normal sales period close from

the last Thursday of the month to the last day of the month.  Operating

results decreased for the quarter and first nine months of 1996.

Operating profit for the first nine months as a percentage of sales was

7.2% in 1996 compared to 9.8% in 1995.  The decrease was due to lower

sales and higher cost of sales (approximately .4%) from product mix and a

higher percentage of selling, general and administrative expenses.

     European sales decreased 5% and 2% for the quarter and first nine

months, respectively, and represented 85% of total 1996 sales for the

quarter and 88% for the year-to-date.  An operating loss was incurred for

the seasonally slow third quarter.  For the first nine months, operating

profit decreased 31% and represented 86% of total 1996 Direct Selling

operating profit.  Operating profit for the first nine months as a

percentage of sales for Europe was down 3.0% compared to 1995.  The

decrease was due to higher levels of selling, general and administrative



                                   -13-

<PAGE>

expense principally in Italy and the impact of full nine month expenses of

the European headquarters.  The Italian government introduced new social

benefit taxes that became effective during the second quarter of 1996.

This additional tax burden has unfavorably impacted the Italian

subsidiary's independent Dealer force and its ability to recruit and

retain Dealers.  First nine months 1996 European local currency sales and

operating profit translated at 1995 average exchange rates would have

resulted in a 3% sales decrease and a 32% operating profit decrease.

Sales for the America's Group (Mexico, Venezuela and Colombia - starting

in the third quarter of 1996) decreased 20% for the third quarter and

increased 1% for the first nine months.  Following the sales decline,

operating profit for the third quarter decreased to break even and

included a $105 thousand loss from the new start up in Colombia.  For the

first nine months, operating profit was down 36% due to the Colombian $105

thousand loss and to higher cost of sales due to the impact of currency.



     UNALLOCATED EXPENSES increased in the first nine months due to higher

general expenses, primarily outside consultant fees, consistent with the

Company programs.  Unallocated expenses are corporate expenses and other

items not directly related to the operations of the Groups.



INTERNATIONAL ECONOMIES AND CURRENCY

     The operations in Mexico and Venezuela have experienced highly

inflationary economies with rapidly changing prices in local currencies.

These conditions, with the resulting adverse impact on local economies,

have made it difficult for operations in these locations to achieve

adequate operating margins.  In addition, the strengthening of the



                                   -14-

<PAGE>

dollar versus the Mexican and Venezuelan currencies has resulted in lower

U.S. dollar results for these operations.  European operations were not

materially impacted by currency translation rates in 1996 compared to 1995.

The value of the U.S. dollar versus international currencies where the

Company conducts business will continue to impact the future results of

these businesses.  In addition to the currency risks, the Company's

international operations, including sources of imported products, are

subject to other risks of doing business abroad, including import or export

restrictions and changes in economic and political climates.

     The fluctuations in net sales and operating profit margins from

quarter to quarter are partially due to the seasonal characteristics of the

Company's business segments.



INTEREST EXPENSE AND OTHER EXPENSE, NET

     Interest expense increased due to higher interest rates and higher

borrowing levels for general working capital and for stock buy backs.

Notes and loans payable going into 1996 were approximately $35.9 million

higher than at the start of 1995.  Other assets amortization of goodwill

increased due to the continuing impact from recent acquisitions.  The

amortization for Giftware in 1996 was $2.9 million compared to $2.6

million in 1995 and the amortization for Direct Response was $.5 million

in 1996 and 1995.



     THE EFFECTIVE TAX RATE year-to-date of 44% was lower than the 45% in

1995 despite higher non deductible goodwill in 1996.  This was due

principally to earnings mix with a lower ratio of foreign income to United

States income, which has a lower rate.



                                   -15-

<PAGE>

FINANCIAL CONDITION

     The Company has historically satisfied its capital requirements with

internally generated funds and short-term loans.  Working capital

requirements have seasonal variations during the year and are generally

greatest during the third quarter.

     The major sources of funds from operating activities in the first

nine months of 1996 were from net income, depreciation, amortization,

lower prepaid expense (from less spending in the media) and higher accrued

tax levels (due to timing of payments).  Prepaid expenses are down from

September of last year due principally to less media spending in 1996 by

the Direct Response Group since the focus for sales generation has been

toward existing customers.  The major uses of funds were increased

accounts receivable which increased due to the higher sales volume and

extended credit marketing programs, particularly in Giftware; increased

inventories to support the higher sales volume and from lower sales of in-

stock goods; increased other assets reflecting higher levels of funded

retirement benefits; and lower accounts payable and accrued expenses due

principally to timing and the payment of year end payrolls and benefits.

The September 30, 1996 increase in net accounts receivable compared to

1995 was due to more customers with extended credit terms and higher sales

volume.  The increase in inventories in 1996 compared to 1995 was due to

increases to support higher levels of sales, lower sales of in-stock goods

for the Giftware Group and higher inventories in the Direct Response Group

to provide customers with quicker fulfillment of orders.

     The major uses of cash in investing activities in the first nine

months of 1996 were for capital expenditures and the acquisition of a

small French giftware company.  The acquisition was accounted for using

the purchase method with basically all of the purchase pricing allocated

                                   -16-

<PAGE>

to goodwill.  The Company has an acquisition program, and may utilize

funds for this purpose in the future.  Capital expenditure commitments for

$17 million are forecasted for 1996.  Proceeds from the sale of property,

plant and equipment was primarily from the sale of a distribution center

in Charlotte, North Carolina.  As of September 30, 1996, two other

distribution centers in the United States with a book value of $622

thousand remain to be sold.  The Italian subsidiary invests excess cash in

short-term investments which change from time to time based on

availability and rates.  The level of changes of marketable securities

from period to period principally represents investment alternatives

versus certificates of deposit, time deposits, and intercompany loans.

     The major uses of cash in financing activities in the first nine

months of 1996 were for dividends to shareholders and purchases of common

stock.  Purchases of common stock principally included shares repurchased

by the Company.  During the first nine months this year, the Company

repurchased 515 thousand shares for $15.2 million.  The Company has an

authorized program to purchase shares of stock for the Company treasury

from time to time in the open market, depending on market conditions, and

may utilize funds for this purpose in the future.  As of September 30,

1996, .8 million shares remained available for purchase under the program.

The Company's earnings, cash flow, and available debt capacity have made

and make stock repurchases, in the Company's view, one of its best

investment alternatives.  The major source of funds from financing

activities was from higher seasonal borrowings.  Total stock options

outstanding at the exercise price amounted to $86 million at September 30,

1996 and the Company could receive these funds in the future if the

options are exercised.



                                   -17-

<PAGE>

     Fluctuations in the value of the U.S. dollar versus international

currencies affect the U.S. dollar translation value of international

currency denominated balance sheet items.  The changes in the balance sheet

dollar values due to international currency translation fluctuations are

recorded as a component of shareholders' equity.  International currency

fluctuations of $244,000 increased the cumulative translation component

which contributed to the shareholders' equity decrease in the first nine

months of 1996.  The translation adjustments to the September 30, 1996

balance sheet that produced the 1996 change in the cumulative translation

component of shareholders' equity were decreases in working capital by

$126,000; increases in net property, plant and equipment and other assets

by $395,000; and increases in long-term liabilities by $513,000.  The

Company depends upon its international operations to pay dividends and to

make other payments to the Company. The Company's international operations

are subject to the risks of doing business abroad including currency,

economic and political.

     The Company currently believes that cash from operations and available

financing alternatives are adequate to meet anticipated requirements for

working capital, dividends, capital expenditures, the stock repurchase

program and other needs.  No liquidity problems are anticipated.

















                                   -18-



<PAGE>
<TABLE>



                                  STANHOME INC.

                 SALES AND OPERATING PROFIT BY BUSINESS SEGMENT

  FOR THE THIRD QUARTER AND FIRST NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
                                   (Unaudited)

                                 (In Thousands)

<CAPTION>
                                           Third Quarter
First Nine Months
                                   ------------------------------    ---------
---------------------
                                     1996        1995     Percent      1996        1995     Percent
                                    Actual      Actual    Change      Actual      Actual    Change
                                    ------      ------    -------     ------      ------    -------
<S>                               <C>         <C>         <C>       <C>         <C>         <C>
Net Sales:                                                                                  
                                                                                            
  Giftware                         $144,756    $138,150      5%      $375,191    $366,231     2%
  Direct Response                    34,614      33,986      2        106,390     102,811     3
  Dir. Response - New Businesses         29           -                    34           -   
  Direct Selling                     30,983      33,715    ( 8)       130,913     133,588   ( 2)
  Eliminations                    (     451)  (     145)            (   1,833)  (   2,565)  
                                   --------    --------              --------    --------   
  Total Net Sales                  $209,931    $205,706      2%      $610,695    $600,065     2%
                                   ========    ========              ========    ========   
                                                                                            
Operating Profit:                                                                           
                                                                                            
  Giftware                         $ 27,502    $ 25,462      8%      $ 56,858    $ 56,874     -
  Direct Response                 (     271)  (   1,290)    79      (     721)  (   2,158)   67
  Dir. Response - New Businesses  (     232)          -             (     831)          -   
  Direct Selling                  (     530)      1,739                 9,485      13,074   (27)
  Unallocated Expense             (   2,874)  (   2,511)   (14)     (   8,181)  (   7,618)  ( 7)
                                   --------    --------              --------    --------   
  Total Operating Profit           $ 23,595    $ 23,400      1%      $ 56,610    $ 60,172   ( 6%)
                                   ========    ========              ========    ========   
</TABLE>




                                      -19-


                                     
<PAGE>
                                 PART II. OTHER INFORMATION


ITEM 6.           EXHIBITS AND REPORTS ON FORM 8-K

      (a)         Exhibits

       -          Enesco Corporation Supplemental Profit Sharing Plan

       -          Financial Data Schedule

      (b)         Reports on Form 8-K

                  No reports on Form 8-K were filed by the Company during
            the Quarter for which this report is filed.

All other items hereunder are omitted because either such item is
inapplicable or the response to it is negative.


                              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.

                              STANHOME INC.
                              (Registrant)



Date:  November 11, 1996      /s/G. William Seawright
                              _____________________________________
                              G. William Seawright
                              President and Chief Executive Officer



Date:  November 13, 1996      /s/Allan G. Keirstead
                              _____________________________________
                              Allan G. Keirstead
                              Chief Administrative and Financial
                              Officer






                                   -20-
<PAGE>

                               EXHIBIT INDEX
<TABLE>
<CAPTION>
                                     
Reg. S-K
Item 601             Exhibit                            10-Q Page No.
_________            _______                            _____________
<S>                  <C>                                      <C>
10                   Enesco Corporation Supplemental          22
                     Profit Sharing Plan, effective
                     January 1, 1994

27                   Financial Data Schedule                  31

</TABLE>

































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