DUCK Alco Stores, Inc. (MM)

Duckwall-ALCO Stores, Inc. Reports January Sales ABILENE, Kan., Feb. 3 /PRNewswire-FirstCall/ -- Duckwall-ALCO Stores, Inc. (NASDAQ:DUCK), a leading regional retailer operating 266 full-line discount and hometown variety stores in 21 states in the central portion of the United States, today announced that its sales from continuing operations for the four weeks ended January 30, 2005 (fiscal month of January) increased approximately 4.0% to $26.1 million, compared with $25.1 million in the prior-year month. Same-store sales increased approximately 1.5% during fiscal January 2005 when compared with the year-earlier period. ALCO stores, which generate approximately 92% of the Company's total revenues, recorded a 1.0% same-store sales increase, while the Duckwall division recorded an increase of 7.3% in same-store sales. Sales for the month benefited from the Company's decision to take more aggressive markdowns on seasonal merchandise in order to reduce inventories. Same-store sales comparisons with last year continue to be unfavorably impacted by higher gasoline prices, which have affected discretionary spending by consumers. Merchandise categories that were particularly strong during January 2005 included: consumables, housewares, toys, seasonal, audio and video, pet supplies and sporting goods. For the thirteen weeks ended January 30, 2005, sales from continuing operations increased approximately 2.8% to $124.1 million, versus $120.8 million in the corresponding period of the previous fiscal year, while same-store sales increased 0.4%. For the fiscal year ended January 30, 2005 (FY2005), sales from continuing operations increased approximately 2.2% to $433.8 million, versus $424.5 million in the previous fiscal year, while same-store sales increased 0.1%. During the month of January 2005, the Company opened 1 Duckwall store in Oklahoma. Store openings during the fiscal year ended January 30, 2005 included 6 new ALCO stores, 3 ALCO Market Place stores (conversions), and 3 new Duckwall stores. Founded in 1901, Duckwall-ALCO Stores, Inc. is a leading regional retailer that operates 266 full-line discount and hometown variety stores in 21 states in the central portion of the United States under the names "ALCO", "ALCO Market Place" and "Duckwall," respectively. The Company's strategy is to target smaller markets not served by other regional or national full-line retail discount chains and provide the most convenient access to retail shopping within each market. Duckwall-ALCO Stores, Inc. is headquartered in Abilene, Kansas, and its common stock is listed on the Nasdaq National Market under the symbol "DUCK". 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. CONTACT: Dick Mansfield Vice President, Finance, Treasurer and Chief Financial Officer 785-263-3350 x286 e-mail: internet home page: http://www.duckwall.com/ or RJ Falkner & Company, Inc., Investor Relations Counsel, at (800) 377-9893 or via e-mail at DATASOURCE: Duckwall-ALCO Stores, Inc. CONTACT: Dick Mansfield, Vice President, Finance, Treasurer and Chief Financial Officer of Duckwall-ALCO Stores, Inc., +1-785-263-3350, ext. 286, , or RJ Falkner & Company, Inc., Investor Relations Counsel, +1-800-377-9893, , for Duckwall-ALCO Stores, Inc. Web site: http://www.duckwall.com/

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