<ARTICLE> 5 <LEGEND> This schedule contains financial information extracted from SEC Form 10-Q and is qualified in its entirety by reference to such financial statements </LEGEND> <CIK> 0000724571 <NAME> FRED'S, INC. <MULTIPLIER> 1,000 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> FEB-01-1997 <PERIOD-END> MAY-04-1996 <CASH> 1,011 <SECURITIES> 0 <RECEIVABLES> 5,860 <ALLOWANCES> (891) <INVENTORY> 93,566 <CURRENT-ASSETS> 101,915 <PP&E> 108,418 <DEPRECIATION> (56,792) <TOTAL-ASSETS> 160,689 <CURRENT-LIABILITIES> 41,037 <BONDS> 1,298 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 63,458 <OTHER-SE> 53,727 <TOTAL-LIABILITY-AND-EQUITY> 160,689 <SALES> 101,758 <TOTAL-REVENUES> 101,758 <CGS> 73,976 <TOTAL-COSTS> 73,976 <OTHER-EXPENSES> 24,433 <LOSS-PROVISION> 34 <INTEREST-EXPENSE> 94 <INCOME-PRETAX> 3,221 <INCOME-TAX> 1,169 <INCOME-CONTINUING> 2,052 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 2,052 <EPS-PRIMARY> 0.22 <EPS-DILUTED> 0.22