ABILENE, Kan., Jan. 10, 2008 (PRIME NEWSWIRE) -- Duckwall-ALCO Stores, Inc. (Nasdaq:DUCK) today announced that its sales from continuing operations for the five weeks ended December 30, 2007 (fiscal month December 2008) increased approximately 7.4% to $71.3 million compared to $66.4 million in the prior-year month. Same-store sales decreased 0.5%, without fuel sales same-store sales decreased 1.2%.
Sales year-to-date increased 5.2% to $463.9 million compared to $440.9 million in the prior year and same-store sales increased 1.5%, without fuel sales same-store sales increased 1.3%.
The Company is realizing the benefits of its IT initiative investment and three year turnaround plan. At the end of fiscal month December 2008, same-store inventory was $9.6 million below prior year, or 8.0%, and total merchandise inventory, including comparable stores, non-comparable stores and warehouse, was $5.0 million below prior year, or 3.7%. This $5.0 million reduction in total merchandise inventory includes the December 2008 investment of approximately $8.3 million in inventory for the 18 new ALCO stores opened during fiscal year 2008.
Another benefit of these initiatives is that year-to-date ALCO same-store gross margin percentage has increased 120 basis points. Continued improvement in same-store gross margin percentage was realized in the fiscal month of December 2008 over the prior year.
Bruce Dale, President and CEO stated, "This difficult retail environment has meant an even greater appreciation for the benefits of our major initiatives the past three years. The reduction in inventory is just one example. The $9.6 million reduction in same-store inventory is primarily attributable to the IT initiative and is helping to offset the required inventory investments of our store growth initiative. Going forward, additional benefits of our initiatives are expected to enhance Company financial performance."
About Duckwall-ALCO Stores, Inc.
Duckwall-ALCO Stores, Inc. is a regional retailer that specializes in meeting the needs of smaller, underserved communities throughout the central United States. The Company offers an exceptional selection of fashionable merchandise, quality products and recognized brand names at reasonable prices. Our specialty is delivering those products with the friendly, personal service our customers have come to expect. With 264 stores across 22 states, we are proud to have continually provided excellent products at good value prices to our customers for 106 years. To learn more about Duckwall-ALCO Stores, Inc. visit our website at www.ALCOstores.com.
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 and are available from the United States Securities and Exchange Commission.