DUCK Alco Stores, Inc. (MM)

Duckwall-ALCO Stores, Inc. Reports July Sales ABILENE, Kan., Aug. 5 /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 for the four weeks ended August 1, 2004, (fiscal month of July) increased approximately 1.4% to $30.4 million, compared with $30.0 million in the prior-year month. Same-store sales decreased approximately 0.2% for the month. ALCO stores, which generate approximately 92% of the Company's total revenues, recorded flat same-store sales, while the Duckwall division recorded a decrease of 2.5%. Management believes that year-to-year sales comparisons for the month were negatively impacted by higher gasoline prices, which affects discretionary spending. Furthermore, sales for July 2004 were unfavorably impacted by the absence of Federal tax rebates that were distributed during the summer of 2003. Sales in the prior-year month also benefited from a sales tax "holiday" in Texas during the final week of July, whereas the Texas sales tax "holiday" occurred in early August this year; along with a Duckwall back-to-school advertising circular that was distributed during the last week of fiscal July 2003 but the first week of fiscal August this year. Merchandise categories that were particularly strong during July included: consumables, domestics, housewares, furniture, jewelry, pet supplies, outdoor horticulture, electronics, outdoor living and men's "big and tall". For the thirteen weeks ended August 1, 2004, total sales increased approximately 0.8% to $109.6 million, versus $108.7 million in the corresponding period of the previous fiscal year, while same-store sales increased approximately 0.1%. For the twenty-six weeks ended August 1, 2004, total sales increased approximately 2.1% to $212.4 million, versus $208.0 million in the corresponding period of the prior year, while same-store sales decreased approximately 0.1%. July was highlighted by preparation for the opening of the Company's second "ALCO Market Store" conversion, which opened August 3, 2004 in Kansas. This new format, which was launched in June 2004 with the opening of the first Market Store in Oklahoma, devotes approximately 25% of its floor space to a limited assortment of foods including produce, dry goods and products displayed in freezers / coolers. "If the initial Market Stores perform in accordance with management's expectations, the concept offers exciting possibilities for the future," noted a Company spokesman. "The enlargement of our grocery department represents a natural progression in the Company's successful expansion of its consumable product offerings during the past several years." During the month of July, 2004 the Company opened 1 ALCO store in Colorado and 2 Duckwall stores in Arkansas and Oklahoma. The Company did not close any stores during the month. Store openings during the first twenty-six weeks of the current fiscal year included 3 new ALCO stores, 1 ALCO Market Store (conversion), and 2 new Duckwall stores. Approximately 4 new ALCO stores and no additional Duckwall stores are expected to open during the balance of the fiscal year. Additionally, the Company expects to convert approximately 2 additional locations to the new ALCO Market Store format during the remainder of the year. 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 Store" 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 Investor Relations Counsel of RJ Falkner & Company, Inc., +1-800-377-9893, , for Duckwall-ALCO Stores, Inc. Web site: http://www.duckwall.com/

Copyright