<ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted from the Consolidated Financial Statements of Fred's, Inc. 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> JAN-31-1998 <PERIOD-START> FEB-2-1997 <PERIOD-END> MAY-3-1997 <CASH> 7,541 <SECURITIES> 0 <RECEIVABLES> 5,730 <ALLOWANCES> (725) <INVENTORY> 92,914 <CURRENT-ASSETS> 110,998 <PP&E> 109,314 <DEPRECIATION> (59,411) <TOTAL-ASSETS> 166,388 <CURRENT-LIABILITIES> 41,587 <BONDS> 1,532 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 63,962 <OTHER-SE> 57,905 <TOTAL-LIABILITY-AND-EQUITY> 166,388 <SALES> 112,668 <TOTAL-REVENUES> 112,668 <CGS> 81,594 <TOTAL-COSTS> 81,594 <OTHER-EXPENSES> 26,800 <LOSS-PROVISION> 7 <INTEREST-EXPENSE> (21) <INCOME-PRETAX> 4,288 <INCOME-TAX> 1,608 <INCOME-CONTINUING> 2,680 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 2,680 <EPS-PRIMARY> 0.29 <EPS-DILUTED> 0.29