8-K

2
744378
                              UNITED STATES
                   SECURITIES AND EXCHANGE COMMISSION
                          WASHINGTON, DC 20549


                                FORM 8-K


                         CURRENT REPORT PURSUANT
                      TO SECTION 13 OR 15(D) OF THE
                     SECURITIES EXCHANGE ACT OF 1934


  Date of report (Date of earliest event reported)               January
9, 2006

                          Harold's Stores, Inc.
         (Exact Name of Registrant as Specified in Its Charter)

                                Oklahoma
              (State or Other Jurisdiction of Incorporation)

            1-10892                        73-1308796
    (Commission File Number)   (IRS Employer Identification No.)


   5919 Maple Ave. Dallas, TX                        75235
(Address of Principal Executive Offices)           (Zip Code)

                             (214) 366-0600
          (Registrant's Telephone Number, Including Area Code)


      (Former Name or Former Address, if Changed Since Last Report)

   Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions:

   [   ]     Written  communications pursuant  to  Rule  425  under  the
Securities Act (17 CFR 230.425)

  [  ]    Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)

   [   ]     Pre-commencement communications pursuant to  Rule  14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))

   [   ]     Pre-commencement communications pursuant to  Rule  13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c))


Item 2.02.     Results of Operations and Financial Condition

      Pursuant  to  Item 2.02 of Form 8-K, on  January  5,  2006,
Harold's  Stores,  Inc. (the "Company") issued  a  press  release
announcing its sales for the holiday period of October  30,  2005
through  December 31, 2005. A copy of the release is included  as
an exhibit to this report.

Item 9.01.       Financial Statements and Exhibits

     The following exhibits are included with this report:

Exhibit No.     Description

99.1            Company Press Release dated January 5, 2006

                           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.


                              HAROLD'S STORES, INC.


                              By  /s/ Jodi Taylor
                              :
Date:  January 9, 2006        Jodi    Taylor,   Chief   Financial
                              Officer
                        INDEX TO EXHIBITS

 Exhibit No.     Description

 99.1            Company Press Release dated January 5, 2006

EX-99

FOR IMMEDIATE RELEASE

         Harold's Stores, Inc. Reports Holiday 2005 Sales Results
         Additional $3 Million of Funding by Principal Shareholder

Dallas, TX - January 5, 2006 - Harold's Stores, Inc. (AMEX symbol: HLD),  a
chain  of  upscale  ladies' and men's specialty apparel  stores,  announced
today  holiday season 2005 sales results for the fiscal period from October
30,  2005  through December 31, 2005 ("quarter-to-date")  and  proposed  $3
million of additional working capital funding.

For  the  quarter-to-date, the Company's total net sales  decreased  13.9%,
with full-line retail comparable store sales decreasing 16.3%, outlet store
comparable  sales declining 1.9%, and direct sales (internet  and  catalog)
increasing 73.8% to $560,000.  Net sales for the quarter-to-date were $15.7
million, as compared to $18.3 million in the same period last year.

For  the  year-to-date, the Company's total net sales decreased 1.8%,  with
full-line  retail  comparable  store sales decreasing  3.9%,  outlet  store
comparable sales increasing 4.6%, and direct sales nearly tripling to  $3.0
million.  Net sales for the year-to-date were $83.3 million as compared  to
$84.8 million for the same period in the previous year.

"It  was  a  difficult holiday season for the Company  due  to  a  decision
earlier  this  year  to alter the timing and quantity of  fall  and  winter
receipts of apparel and accessories," said Leonard M. Snyder, Interim Chief
Executive  Officer.   Snyder continued, "This resulted in  full-line  store
inventory levels for the holiday season being approximately 25% below  last
year  levels,  with  the  shortfall substantially in  holiday  apparel  and
accessories, so that the Company had neither enough gift-giving  nor  wear-
now  apparel available in its full-line stores.  We had originally believed
that  our  mix of inventory, which favored new resort and lower  levels  of
fall  and  winter versus 2004, would work to our advantage, but  quantities
proved insufficient.  Moreover, the very spring-like resort apparel,  which
was  delivered  to the stores December 1, could not offset the  demand  for
wear-now apparel.  The Company has undertaken a thorough review of its full
2006  seasonal  plans to ensure proper timing and quantity  of  merchandise
throughout the year."

The  Company's principal shareholder has indicated his intention to provide
an  additional  $3  million of funding for the  Company,  on  terms  to  be
negotiated by the Company and the shareholder.  This additional funding  is
expected  to  supplement  the  Company's  existing  bank  working   capital
facility,  to support the 2006 merchandise initiatives and the  opening  of
replacement  stores in Greenville, SC and Charlotte, NC and  new  full-line
locations in Montgomery, AL and Little Rock, AR during 2006.  Completion of
the transaction is subject to documentation and negotiation of final terms,
and  provided there are no unexpected issues, closing should take place  by
the end of January 2006.

Founded  in 1948 and headquartered in Dallas, Texas, Harold's Stores,  Inc.
(AMEX  symbol:  HLD)  currently  operates  41  upscale  ladies'  and  men's
specialty  stores in 19 states.  The Company's Houston locations are  known
as "Harold Powell."

Harold's  Stores,  Inc.  wishes  to take advantage  of  the  "safe  harbor"
provisions  of the Private Securities Litigation Reform Act  of  1995  with
respect  to  statements  that may be deemed to be  forward  looking.   This
release  contains forward-looking statements that are subject to risks  and
uncertainties,  including, but not limited to, the impact  of  competition,
pricing  pressure, product demand and market acceptance risks, mergers  and
acquisitions, reliance on key strategic alliances, the ability  to  attract
and retain key employees, the availability of cash for growth, fluctuations
in  operating results, the ability to continue funding operating losses and
other  risks  detailed  from  time to time in  Harold's  filings  with  the
Securities and Exchange Commission.  These risks could cause the  Company's
actual  results  for  2006  and  beyond to  differ  materially  from  those
expressed  in  any  forward-looking statements made by, or  on  behalf  of,
Harold's Stores, Inc.

Financial Information Contact:
Jodi L. Taylor
Chief Financial Officer
Harold's Stores, Inc.
405-329-4045