<ARTICLE> 5 <CIK> 0000724571 <NAME> FREDS, INC. <MULTIPLIER> 1,000 <PERIOD-TYPE> 12-MOS <FISCAL-YEAR-END> JAN-30-1999 <PERIOD-END> JAN-30-1999 <CASH> 2,406 <SECURITIES> 0 <RECEIVABLES> 9,575 <ALLOWANCES> 644 <INVENTORY> 126,577 <CURRENT-ASSETS> 143,064 <PP&E> 141,968 <DEPRECIATION> 71,467 <TOTAL-ASSETS> 220,757 <CURRENT-LIABILITIES> 70,283 <BONDS> 11,821 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 66,951 <OTHER-SE> 70,032 <TOTAL-LIABILITY-AND-EQUITY> 220,757 <SALES> 600,902 <TOTAL-REVENUES> 600,902 <CGS> 436,523 <TOTAL-COSTS> 436,523 <OTHER-EXPENSES> 149,790 <LOSS-PROVISION> 122 <INTEREST-EXPENSE> 1,106 <INCOME-PRETAX> 13,605 <INCOME-TAX> 4,775 <INCOME-CONTINUING> 8,830 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 8,830 <EPS-PRIMARY> $0.75 <EPS-DILUTED> $0.73