ABILENE, Kan., March 3, 2005 (PRIMEZONE) -- Duckwall-ALCO Stores, Inc. (Nasdaq:DUCK) today announced that its sales from continuing operations for the four weeks ended February 27, 2005 (fiscal month of February) increased approximately 2.5% to $30.8 million, compared with $30.1 million in the prior-year month. Stores where the decision has been made to close them by the end of the 1st quarter are excluded from sales from continuing operations.
Same-store sales decreased approximately 0.3% during fiscal February 2005 when compared with the year-earlier period. ALCO stores, which generate approximately 92% of the Company's total revenues, recorded a 0.5% same-store sales decrease, while the Duckwall division recorded an increase of 1.9% in same-store sales.
Merchandise categories that were particularly strong during February 2005 included: domestics, housewares, pet supplies, sporting goods, movies (budget and new release "Shark Tales"), outdoor living, crafts, and ladies bottoms.
As previously announced in a press release March 1, the Company is undertaking several initiatives designed to improve same-store sales with particular emphasis on increasing store traffic, improving customer conversion and generating higher average purchase dollars per transaction through:
-- Conversion of selected stores to the Market Place concept,
which will carry an expanded line of consumables and fresh
food products;
-- Expansion of gift card program;
-- Implementation of new point of sale system;
-- Comprehensive review of store procedures, merchandising and
marketing efforts; and
-- Further development and execution of an Internet sales strategy.
During the month of February 2005, the Company did not open or close any ALCO or Duckwall stores. During the current fiscal year (F06), the Company plans to open approximately 8 -- 10 ALCO and ALCO Market Place stores, and, as previously announced, will be closing stores that do not meet its minimum return on investment criteria.
Duckwall-ALCO Stores, Inc. is a leading regional retailer that specializes in offering a wide variety of products at reasonable prices to the underserved communities of America. Founded in 1901 by A.L. Duckwall as a general merchandising operation in Abilene, Kan., Duckwall-ALCO is known for its convenient locations and for its friendly, personal service. The company has 265 stores in 21 states across the central United States, operating under two names, ALCO and Duckwall. ALCO discount stores offer a full line of merchandise, while Duckwall variety stores serve smaller communities, offering a smaller selection.
Forward-looking statements
This press release contains forward-looking statements, as referenced in the Private Securities Litigation Reform Act of 1995 ("the Act"). Any forward-looking statements are made by the Company in good faith, pursuant to the safe-harbor provisions of the Act. These forward-looking statements reflect management's current views and projections regarding economic conditions, retail industry environments and Company performance. Factors, which could significantly change results, include but are not limited to: sales performance, expense levels, competitive activity, interest rates, changes in the Company's financial condition and factors affecting the retail category in general. Additional information regarding these and other factors may be included in the Company's quarterly 10-Q filings and other public documents, copies of which are available from the Company on request.