<ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted from the unaudited Consolidated Balance Sheets and Consolidated Statements of Income of Fred's, Inc. for the quarter ended May 2, 1998 and is qualified in its entirety by reference to such financial statements. </LEGEND> <CIK> 0000724571 <NAME> FRED'S, INC. <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> JAN-30-1999 <PERIOD-START> FEB-01-1998 <PERIOD-END> MAY-02-1998 <CASH> 159,000 <SECURITIES> 0 <RECEIVABLES> 7,544,000 <ALLOWANCES> (772,000) <INVENTORY> 117,134,000 <CURRENT-ASSETS> 130,176,000 <PP&E> 123,073,000 <DEPRECIATION> (65,498,000) <TOTAL-ASSETS> 194,714,000 <CURRENT-LIABILITIES> 59,051,000 <BONDS> 1,309,000 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 66,143,000 <OTHER-SE> 66,659,000 <TOTAL-LIABILITY-AND-EQUITY> 194,714,000 <SALES> 144,156,000 <TOTAL-REVENUES> 144,156,000 <CGS> 103,989,000 <TOTAL-COSTS> 103,989,000 <OTHER-EXPENSES> 34,159,000 <LOSS-PROVISION> 6,000 <INTEREST-EXPENSE> 46,000 <INCOME-PRETAX> 5,956,000 <INCOME-TAX> 2,204,000 <INCOME-CONTINUING> 3,752,000 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 3,752,000 <EPS-PRIMARY> 0.32 <EPS-DILUTED> 0.31