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 28, 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        1-8769

                            R. G. BARRY CORPORATION
            (Exact name of registrant as specified in its charter)


                   Ohio                             31-4362899
       (State or other jurisdiction of   (IRS Employer Identification
       incorporation or organization)                Number)


             13405 Yarmouth Road, NW, Pickerington, Ohio     43147
           (Address of principal executive offices)       (Zip Code)


                                 614-864-6400
           (Registrant's telephone number, including area code)


                                NOT APPLICABLE
       (Former name, former address, and former fiscal year, if changed
       since last report)

       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


       Common Shares, $1 Par Value,
                      Outstanding as of  September 28, 1996 - 9,349,074




                         Index to Exhibits at page 11

                                     -1-


<PAGE>

                         PART I FINANCIAL INFORMATION
                         ITEM 1 - FINANCIAL STATEMENTS
                   R. G. BARRY CORPORATION AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS


                                            Sept 28, 1996   Dec 30, 1995
                                            -------------   ------------
  ASSETS:
    Cash.  .  .  .  .  .  .  .  .  .  .  .  $  4,050,000       6,267,000
    Accounts receivable, less allowances .    33,621,000      18,252,000
    Inventory (note 3) .  .  .  .  .  .  .    48,179,000      31,708,000
    Deferred federal income taxes (note 4)     4,406,000       4,406,000
    Prepaid expenses and other assets .  .     1,775,000       2,088,000
                                              ----------      ----------
          Total current assets  .  .  .  .    92,121,000      62,721,000
                                              ----------      ----------

    Property, plant and equipment, at cost    37,532,000      36,964,000
      Less accumulated depreciation
       and amortization.  .  .  .  .  .  .    22,994,000      22,808,000
                                              ----------      ----------
        Net property, plant and equipment     14,538,000      14,156,000
                                              ----------      ----------
    Goodwill, net of amortization  .  .  .     4,375,000       4,462,000
    Other assets .  .  .  .  .  .  .  .  .     2,829,000       3,001,000
                                              ----------      ----------
                                            $113,863,000      84,340,000
                                            ============      ==========
  LIABILITIES & SHAREHOLDERS' EQUITY:
    Current installments of long-term debt
      and capital lease obligations.  .  .       115,000         815,000
    Short-term notes payable .  .  .  .  .    33,000,000           -
    Accounts payable.  .  .  .  .  .  .  .     7,387,000       8,961,000
    Accrued expenses.  .  .  .  .  .  .  .     4,372,000       9,017,000
                                              ----------      ----------
          Total current liabilities.  .  .    44,874,000      18,793,000
                                              ----------      ----------
    Accrued supplemental retirement plan .     2,889,000       2,546,000

    Long-term debt and capital lease 
      obligations, excluding current
      installments:
      Note payable  .  .  .  .  .  .  .  .    15,000,000      15,000,000
      Capital lease obligations .  .  .  .       390,000         390,000
                                              ----------      ----------
      Long-term debt and capital lease
          obligations  .  .  .  .  .  .  .    15,390,000      15,390,000
                                              ----------      ----------
          Total liabilities  .  .  .  .  .    63,153,000      36,729,000
                                              ----------      ----------

    Shareholders' equity:
      Preferred shares, $1 par value.
        Authorized 4,000,000 Class A,
        1,000,000 Series I Junior
        Participating Class B shares,
        none issued .  .  .  .  .  .  .  .         -               -
      Common shares, $1 par value.
        Authorized 15,000,000 shares
        (excluding treasury shares).  .  .     9,349,000       7,410,000
      Additional capital in excess of
        par value.  .  .  .  .  .  .  .  .    13,628,000      15,161,000
      Retained earnings.  .  .  .  .  .  .    27,733,000      25,040,000
                                              ----------      ----------
          Net shareholders' equity .  .  .    50,710,000      47,611,000
                                              ----------      ----------
                                            $113,863,000      84,340,000
                                            ============      ==========

                                     -2-


<PAGE>




                 R. G. BARRY CORPORATION AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF OPERATIONS

                                                Thirty-nine  Thirty-eight
                        Thirteen Weeks Ended    Weeks Ended   Weeks Ended
                        Sept 28,     Sept 23,      Sept 28,     Sept 23,
                        --------     --------      --------     --------
                          1996         1995          1996         1995
                          ----         ----          ----         ----

Net sales .  .  .  . $45,161,000   44,442,000    81,196,000   70,227,000

Cost of sales.  .  .  25,307,000   24,773,000    44,333,000   37,118,000
                     -----------   ----------    ----------   ----------

  Gross profit  .  .  19,854,000   19,669,000    36,863,000   33,109,000

Selling, general
  and administrative
  expense .  .  .  .  11,117,000   11,450,000    30,882,000   31,144,000
                     -----------   ----------    ----------   ----------
  Operating
    income.  .  .  .   8,737,000    8,219,000     5,981,000    1,965,000

Royalty income  .  .     134,000       44,000       341,000       88,000

Interest expense.  . (   862,000) (   959,000)  ( 1,920,000) ( 2,115,000)
Interest income .  .      30,000       16,000        94,000       32,000
                     -----------   ----------    ----------   ----------
  Net interest
    expense  .  .  . (   832,000) (   943,000)  ( 1,826,000) ( 2,083,000)
                     -----------   ----------    ----------   ----------
Earnings (loss) before
  tax (benefit) .  .   8,039,000    7,320,000     4,496,000  (    30,000)

Income tax (benefit)
  (note 4).  .  .  .   3,219,000    2,855,000     1,803,000  (    12,000)
                     -----------   ----------    ----------   ----------
  Net earnings (loss) $4,820,000    4,465,000     2,693,000  (    18,000)
                     ===========   ==========    ==========   ==========


Net earnings (loss)
  per common share (note 5)
     Primary .  .  .   $   0.50         0.49          0.27         0.00
                       ========         ====          ====         ====
     Fully diluted .   $   0.50         0.49          0.27         0.00
                       ========         ====          ====         ====

Average number of
  shares outstanding
     Primary .  .  .   9,872,000    9,234,000     9,834,000    9,226,000

     Fully diluted .   9,872,000    9,234,000     9,834,000    9,226,000


                                     -3-
<PAGE>








                 R. G. BARRY CORPORATION AND SUBSIDIARIES
             CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                             Thirty-nine    Thirty-eight
                                             Weeks Ended     Weeks Ended
                                           Sept 28, 1996   Sept 23, 1995
                                           -------------   -------------

Cash flows from operating activities:
  Net earnings (loss)  .  .  .  .  .  .    $  2,693,000     (    18,000)
  Adjustments to reconcile net
   earnings (loss) to net cash
   used in operating activities:
    Depreciation and amortization of
      property, plant and equipment.  .       1,203,000       1,162,000
    Amortization of goodwill .  .  .  .          87,000          88,000
    Net (increase) decrease in:
      Accounts receivable, net  .  .  .     (15,459,000)    (12,269,000)
      Inventory  .  .  .  .  .  .  .  .     (16,471,000)    (20,299,000)
      Prepaid expenses and other
        current assets .  .  .  .  .  .         313,000         245,000
      Other assets  .  .  .  .  .  .  .         172,000     (   273,000)

    Net increase (decrease) in:
      Accounts payable .  .  .  .  .  .     ( 1,574,000)        201,000
      Accrued expenses .  .  .  .  .  .     ( 4,645,000)    ( 3,635,000)
      Accrued supplemental retirement
        and other liabilities.  .  .  .         343,000         206,000
        Net cash used in operating           ----------      ----------
          activities.  .  .  .  .  .  .     (33,338,000)    (34,592,000)
                                             ----------      ----------
Cash flows from investing activities:
  Additions of property, plant
    and equipment, net .  .  .  .  .  .     ( 1,585,000)    ( 2,308,000)
                                             ----------      ----------
Cash flows from financing activities:
  Proceeds from short-term notes.  .  .      33,000,000      36,000,000
  Acquisition of treasury shares                  -         (   240,000)
  Stock options exercised .  .  .  .  .         406,000         106,000
  Repayment of long-term debt
    and capital lease obligations  .  .     (   700,000)    (   567,000)
                                             ----------      ----------
        Net cash provided by
          financing activities  .  .  .      32,706,000      35,299,000
                                             ----------      ----------
Net decrease in cash.  .  .  .  .  .  .     ( 2,217,000)    ( 1,601,000)

Cash at beginning of the period .  .  .       6,267,000       2,360,000
                                             ----------      ----------
Cash at end of the period .  .  .  .  .    $  4,050,000         759,000
                                             ==========      ==========


Supplemental cash flow disclosures:
  Interest paid  .  .  .  .  .  .  .  .    $  2,066,000       2,300,000
                                             ==========      ==========

  Taxes paid, net.  .  .  .  .  .  .  .    $  5,618,000       2,634,000
                                             ==========      ==========

                                     -4-
<PAGE>


                 R. G. BARRY CORPORATION AND SUBSIDIARIES
                         Notes to Financial Statements
                      Under Item 1 of Part I of Form 10-Q
                             for the Periods Ended
                   September 28, 1996 and September 23, 1995

1.   These  interim  financial  statements  are  unaudited.   All  adjustments
     (consisting solely of normal recurring adjustments) have been made, which
     in the opinion of management, are necessary to fairly present the results
     of operations for the periods.

2.   The Company  operates on a fifty-two or  fifty-three  week annual  fiscal
     year.  Prior to 1996, the fiscal quarters were comprised of a twelve week
     first quarter,  thirteen week second and third  quarters,  and a fourteen
     week fourth quarter.  When there was a fifty-three  week fiscal year, the
     Company  added  one week to the first  quarter.  Effective  in 1996,  the
     Company has modified its quarters,  so that all quarters  will  routinely
     have thirteen weeks,  except that in fifty-three  week years,  the fourth
     quarter will have fourteen weeks. The objective of this change is to even
     out the length of the  quarters,  and to more  closely  follow the fiscal
     accounting periods of the Company's principle retailing customers. Fiscal
     1995 and 1996 are both fifty-two week years.

3.   A substantial  portion of inventory is valued using the dollar value LIFO
     method and,  therefore,  it is impractical to separate  inventory  values
     between raw materials, work-in-process and finished goods.

4.   Income tax  (benefit)  for the  periods  ended Sept 28, 1996 and Sept 23,
     1995, consists of:

                                                 1996           1995
                                                 ----           ----
          Current:
             U. S. Federal (benefit) .  .    $1,503,000    ($    9,000)
             State & Local  .  .  .  .  .       300,000    (     3,000)
                                             ----------     ----------
                 Total.  .  .  .  .  .  .    $1,803,000    ($   12,000)
                                             ==========     ==========

     The income tax (benefit) reflects a combined federal,  foreign, state and
     local effective rate of 40.1% for the first nine months of 1996 and 40.0%
     for the same period of 1995,  as compared to the  statutory U. S. federal
     rate of 34.0% in both years.

     Income tax for the periods ended Sept 28, 1996 and Sept 23, 1995 differed
     from the amounts  computed by applying the U. S. federal  income tax rate
     of 34.0% to pretax income (loss) as a result of the following:

                                                 1996           1995
                                                 ----           ----
          Computed "expected"
            tax expense (benefit):
             U. S. Federal (benefit) .  .    $1,530,000    ($   10,000)
             Other .  .  .  .  .  .  .  .        75,000           -
             State & Local (benefit) net of
              Federal income tax benefit.       198,000    (     2,000)
                                             ----------     ----------
                 Total.  .  .  .  .  .  .    $1,803,000    ($   12,000)
                                             ==========     ==========

5.   Net  earnings  (loss) per  common  share has been  computed  based on the
     average number of shares  outstanding during each period plus, when their
     effect is dilutive, common share equivalents consisting of certain shares
     subject  to stock  options  and the  stock  purchase  plan.


                                     -5-
<PAGE>


                   R. G. BARRY CORPORATION AND SUBSIDIARIES
                         Notes to Financial Statements
                      Under Item 1 of Part I of Form 10-Q
                             for the Periods Ended
             September 28, 1996 and September 23, 1995 (continued)


5.   (continued)

     Average   common   shares   outstanding   for  prior  periods  have  been
     retroactively  restated to give effect to all prior splits and dividends.
     On June 17, 1996, the Company  distributed a five-for-four share split to
     shareholders  of record  on June 3,  1996.  Previously  the  Company  had
     distributed  a  four-for-three  share  split  on  September  15,  1995 to
     shareholders of record on September 1, 1995.

6.   The Company previously  reported that in 1994, the Company and several of
     its officers and directors  were named as  defendants in three  purported
     class actions filed in the United States  District Court for the Southern
     District of Ohio, Eastern Division. The Complaints generally alleged that
     the Company made several false and misleading  statements in violation of
     certain  provisions of the federal  securities  laws.  One complaint also
     alleged  claims  arising  under  state  law.  The  District  Court  judge
     subsequently  consolidated  these three class actions into a single case.
     In March  1996,  the judge  granted the  Company's  motion to dismiss the
     action and  entered a judgement  dismissing  with  prejudice  the federal
     securities claims and dismissing  without prejudice the state law claims.
     In March 1996,  plaintiffs  filed a motion asking that the District Court
     reconsider  the decision.  In May 1996,  the action was again  dismissed.
     Plaintiffs have filed no further appeal.


                                     -6-
<PAGE>



                 R. G. BARRY CORPORATION AND SUBSIDIARIES
          ITEM 2 - Management's Discussion and Analysis of Financial
                      Condition and Results of Operations

          "Safe  Harbor"  Statement  under the Private  Securities  Litigation
          Reform Act of 1995: The statements in this Quarterly  Report on Form
          10-Q which are not historical  fact are forward  looking  statements
          that involve risks and uncertainties, including, but not limited to,
          product demand and market  acceptance  risks, the effect of economic
          conditions, the impact of competitive products and pricing, capacity
          and supply  constraints or  difficulties,  weather  conditions,  and
          other  risks  detailed  in the  Company's  Securities  and  Exchange
          Commission filings.


Liquidity and Capital Resources

     The  Company  ended the third  quarter of 1996 with $47.2  million in net
working  capital.  This  compares  with  $37.0  million at the end of the same
quarter in 1995,  and $43.9 million as of the end of fiscal 1995. The increase
in net working  capital from the third quarter of 1995 to the third quarter of
1996,  is almost  entirely  due to the profits  earned by the Company over the
last four quarters. The increase in net working capital from the end of fiscal
1995  through the end of the current  quarter is also due mainly to the profit
earned during 1996.

     The Company's  capital  expenditures  during the first three  quarters of
1996,  amounted to $1.6 million,  compared  with $2.3 million  during the same
period of 1995. Capital  expenditures in both years were funded out of working
capital. The Company does not currently have commitments for future additional
capital  expenditures at amounts materially  different from those typically in
place to support ordinary operation of the Company.

     Some of the  changes  in the  components  of the  Company's  net  working
capital are:

     i) Accounts receivable decreased at the end of the third quarter of 1996,
to $33.6  million from $35.7  million at the end of the third quarter of 1995,
and  increased  from  $18.3  at the  end  of  fiscal  1995.  The  decrease  in
receivables  from  third  quarter  1995  to  1996,  is  mainly  related  to an
improvement  in the  collections  of accounts  from one year to the next.  The
increase  from the end of fiscal  1995  mainly  represents  a normal  seasonal
growth in receivables.

     ii) Inventories ended the third quarter of 1996 at $48.2 million compared
with $46.4 million one year ago, and $31.7 million as of fiscal year end 1995.
The increase in inventories from year end follows a normal seasonal buildup in
inventories,  as the Company  prepares to satisfy the demand for its  products
anticipated for the fourth quarter of the year.

     iii) Mainly as a result of the increase in  profitability  from the third
quarter  of 1995 to the  third  quarter  of  1996,  the  Company's  short-term
borrowings under its Revolving Credit Agreement  ("Revolver")  ended the third
quarter of 1996 at $33.0  million,  compared  with $38.0 million at the end of
the same quarter in 1995.

In late February 1996, the Company negotiated a new Revolving Credit Agreement
("Revolver"),  with its three main lending banks, replacing the agreement that
had been in place for a number of years.  The Revolver  provides the Company a
seasonally  adjusted  available  line of credit  ranging  from $6  million  in
January,  to a peak of $51 million  from July through  November.  The Revolver
currently  extends  through 1998 and provides  for  periodic  extensions  upon
request and with the approval of the banks.  The Revolver  contains  financial



                                     -7-
<PAGE>

       Management's Discussion and Analysis of Financial Condition
                  and Results of Operations - continued

covenants  typical of agreements  of its type and duration.  The Company is in
compliance with all covenants of the Revolver, and all other debt agreements.

Results of Operations

     During the third quarter of 1996, net sales amounted to $45.2 million,  a
1.6 percent  increase  over net sales of $44.4 million in the third quarter of
1995.  For the first nine months of 1996,  net sales amounted to $81.2 million
compared  with $70.2 million for the first nine months of 1995, a 15.6 percent
increase.  Increases  in net sales for nine  months,  were  derived  from both
slippers and thermal products, and primarily represent increases in volume and
mix changes with only modest price increases. The increase in net sales during
the third quarter was entirely  related to slippers.  Additionally,  the first
nine months of 1996 included thirty-nine weeks, while the first nine months of
1995 included  only  thirty-eight  weeks.  The third quarter in both years had
thirteen weeks.

     Gross  profit  during  the third  quarter  of 1996,  was  $19.9  million,
compared  with $19.7 million  during the third quarter of 1995.  For the first
nine months of 1996,  gross profit  amounted to $36.9  million,  compared with
$33.1  million  during the same nine  months of 1995.  The  primary  source of
increased gross profit dollars is the increase in net sales.

     Gross  profit as a  percentage  of net sales was fairly flat in the third
quarter,  at 44.0 percent in 1996 compared with 44.3 percent  during the third
quarter  of 1995.  For the  entire  first nine  months of 1996,  gross  profit
percentage was 45.4 compared with 47.1 percent during the first nine months of
1995. The change in gross profit percentages is principally due to a change in
mix from one period to the other.

     Selling, general and administrative expenses during the quarter decreased
slightly to $11.1 million from $11.5 million during the third quarter of 1995.
For the nine months, these expenses also decreased to $30.9 million from $31.1
for the same nine months of 1995,  this despite the 15.6  percent  increase in
net sales.

     Net interest  expense also declined  from 1995 to 1996.  During the third
quarter of 1996, net interest expense amounted to $832 thousand  compared with
$943 thousand in the third quarter of 1995. For the first nine months of 1996,
net interest  expense  amounted to $1.8 million compared with $2.1 million the
prior year. The decrease in net interest is mainly due to the Company's  lower
usage of its Revolver in 1996,  than in 1995,  plus  generally  lower interest
rates in 1996 than in 1995.

     For the third  quarter of 1996,  the Company  earned a net profit of $4.8
million  after  taxes,  or $0.50 per share  [fully  diluted],  an 8.0  percent
increase  when  compared with a net profit in the same quarter of last year of
$4.5 million, or $0.49 per share [fully diluted]. For the first nine months of
1996,  the Company  earned a net profit of $2.7  million,  or $0.27 per share,
compared with a nominal loss of $18 thousand, or $0.00 per share for the first
nine  months of 1995.  All per  share  calculations  have  been  retroactively
restated to give effect to the four-for-three share split paid to shareholders
on September 15, 1995, and the five-for-four  share split paid to shareholders
on June 17, 1996.

                                     -8-
<PAGE>



                           PART II OTHER INFORMATION

    Item 1.  Legal Proceedings.

             No response required.


    Item 2.  Changes in Securities.
             (a), (b) Not Applicable.


    Item 3.  Defaults Upon Senior Securities.
             (a), (b) Not Applicable.


    Item 4.  Submission of Matters to a Vote of Security Holders.
             (a) -(d) Not Applicable.


    Item 5.  Other Information.
             No response required.


    Item 6.  Exhibits and Reports on Form 8-K.
             (a)  Exhibits:  See Index to Exhibits at page 11.

             (b)  Reports  on Form  8-K:  No  reports  on Form 8-K were  filed
                  during the quarter ended September 28, 1996.




                                     -9-
<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.






                                         R. G. BARRY CORPORATION
                                         Registrant




           October 29, 1996             /s/Richard L. Burrell
                Date                    --------------------------------------
                                        Richard L. Burrell
                                        Senior Vice President-Finance
                                        (Principal Financial Officer)
                                        (Duly Authorized Officer)



                                     -10-
<PAGE>



                            R. G. BARRY CORPORATION

                               INDEX TO EXHIBITS

     Exhibit                                              Page
     Number               Description                    Number
    ---------            -------------                  --------

      27          Financial Data Schedule                  12






                                     -11-