<ARTICLE> 5 <CIK> 0000724571 <NAME> FRED'S, INC. <MULTIPLIER> 1,000 <PERIOD-TYPE> 6-MOS <FISCAL-YEAR-END> FEB-01-1997 <PERIOD-END> AUG-03-1996 <CASH> 2,666 <SECURITIES> 0 <RECEIVABLES> 3,917 <ALLOWANCES> (962) <INVENTORY> 93,273 <CURRENT-ASSETS> 102,123 <PP&E> 51,155 <DEPRECIATION> (58,155) <TOTAL-ASSETS> 161,038 <CURRENT-LIABILITIES> 41,831 <BONDS> 807 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 63,348 <OTHER-SE> 53,956 <TOTAL-LIABILITY-AND-EQUITY> 161,038 <SALES> 200,786 <TOTAL-REVENUES> 200,786 <CGS> 146,559 <TOTAL-COSTS> 146,559 <OTHER-EXPENSES> 49,998 <LOSS-PROVISION> 105 <INTEREST-EXPENSE> 211 <INCOME-PRETAX> 3,913 <INCOME-TAX> 1,447 <INCOME-CONTINUING> 2,466 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 2,466 <EPS-PRIMARY> $0.26 <EPS-DILUTED> $0.26