<ARTICLE> 5 <LEGEND> This schedule contains summary financial infrmation extracted from SEC Form 10-K and is qualified is its entirety by reference to such financial statments. </LEGEND> <CIK> 0000724571 <NAME> FRED'S, INC. <MULTIPLIER> 1,000 <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> FEB-3-1996 <PERIOD-END> FEB-3-1996 <CASH> 5,496 <SECURITIES> 0 <RECEIVABLES> 5,972 <ALLOWANCES> (857) <INVENTORY> 85,211 <CURRENT-ASSETS> 98,903 <PP&E> 107,725 <DEPRECIATION> (55,484) <TOTAL-ASSETS> 158,023 <CURRENT-LIABILITIES> 39,554 <BONDS> 1,779 <COMMON> 63,458 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <OTHER-SE> 52,112 <TOTAL-LIABILITY-AND-EQUITY> 158,023 <SALES> 410,086 <TOTAL-REVENUES> 410,086 <CGS> 305,668 <TOTAL-COSTS> 305,668 <OTHER-EXPENSES> 99,052 <LOSS-PROVISION> 595 <INTEREST-EXPENSE> 434 <INCOME-PRETAX> 4,337 <INCOME-TAX> 1,604 <INCOME-CONTINUING> 2,733 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 2,733 <EPS-PRIMARY> .29 <EPS-DILUTED> .29