EXHIBIT 11 FRED'S, INC. COMPUTATION OF NET INCOME PER SHARE (unaudited) (in thousands, except per share amounts) Thirteen Weeks Ended May 2, May 3, 1998 1997 ----------- --------- Basic net income per share Net income ............................. $ 3,752 $ 2,680 ======= ======= Weighted average number of common shares outstanding during the period ......... 11,778 11,634 Net income per share ................... $ .32 $ .23 ======= ======= Diluted net income per share Net income ............................. $ 3,752 $ 2,680 ======= ======= Weighted average number of common shares outstanding during the period ......... 11,778 11,634 Additional shares attributable to common stock equivalents ..................... 326 28 ------- ------- 12,104 11,662 ======= ======= Net income per share ................... $ .31 $ .23 ======= ======= All share and per share amounts have been adjusted to reflect the five-for-four stock split in December 1997.