<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE UNAUDITED FINANCIAL STATEMENTS OF FREDS, INC. FOR THE QUARTER ENDED AUGUST 2, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS." </LEGEND> <CIK> 0000724571 <NAME> FRED'S, INC. <MULTIPLIER> 1,000 <PERIOD-TYPE> 6-MOS <FISCAL-YEAR-END> JAN-31-1998 <PERIOD-START> FEB-2-1997 <PERIOD-END> AUG-2-1997 <CASH> 6,000 <SECURITIES> 0 <RECEIVABLES> 4,960 <ALLOWANCES> (568) <INVENTORY> 89,620 <CURRENT-ASSETS> 105,345 <PP&E> 111,365 <DEPRECIATION> (60,707) <TOTAL-ASSETS> 161,686 <CURRENT-LIABILITIES> 36,055 <BONDS> 1,479 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 63,890 <OTHER-SE> 58,803 <TOTAL-LIABILITY-AND-EQUITY> 161,686 <SALES> 222,864 <TOTAL-REVENUES> 222,864 <CGS> 161,611 <TOTAL-COSTS> 161,611 <OTHER-EXPENSES> 55,031 <LOSS-PROVISION> 9 <INTEREST-EXPENSE> (76) <INCOME-PRETAX> 6,289 <INCOME-TAX> 2,358 <INCOME-CONTINUING> 3,931 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 3,931 <EPS-PRIMARY> $0.42 <EPS-DILUTED> $0.42