EXHIBIT 11 FRED'S, INC. COMPUTATION OF NET INCOME PER SHARE (unaudited) (in thousands, except per share amounts) Thirteen Weeks Ended Twenty-Six Weeks Ended August 1, August 2, August 1, August 2, 1998 1997 1998 1997 ---------- ---------- ---------- ------ Basic net income per share Net income $ 1,779 $ 1,251 $ 5,531 $3,931 ======= ======= ======= ====== Weighted average number of common shares outstanding during the period 11,799 11,636 11,784 11,635 ======= ======= ======= ====== Net income per share $ .15 $ .11 $ .47 $ .34 ======= ======== ======= ====== Diluted net income per share Net income $ 1,779 $ 1,251 $ 5,531 $3,931 ======= ======= ======= ====== Weighted average number of common shares outstanding during the period 11,799 11,636 11,784 11,635 Additional shares attributable to common stock equivalents 310 184 313 95 ------- ------- ------- ------ 12,109 11,820 12,097 11,730 ======= ======= ======= ====== Net income per share $ .15 $ .11 $ .46 $ .34 ======= ======= ======= ======