DUCK Alco Stores, Inc. (MM)

Duckwall-ALCO Stores, Inc. Reports November Sales ABILENE, Kan., Dec. 2 /PRNewswire-FirstCall/ -- Duckwall-ALCO Stores, Inc. (NASDAQ:DUCK), a leading regional retailer operating 265 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 November 28, 2004 (fiscal month of November) increased approximately 0.9% to $36.7 million, compared with $36.4 million in the prior-year month. Same-store sales decreased approximately 1.3% during fiscal November 2004 when compared with the prior-year period. ALCO stores, which generate approximately 93% of the Company's total revenues, recorded a 1.5% same-store sales decrease, while the Duckwall division recorded an increase of 0.1% in same-store sales. Video and music accounted for 0.8% of the decline in November same-store sales, reflecting fewer "hit" video releases this year than in the prior-year period, as well as overall softness in the music category. Additionally, management believes that same-store sales comparisons with last year continue to be unfavorably impacted by higher gasoline prices, which have affected discretionary spending by consumers in recent months. Sales on the Friday after Thanksgiving were strong, but were soft on Saturday and Sunday. Merchandise categories that were particularly strong during November 2004 included: consumables, infants / toddlers, pet supplies, sporting goods, fabric and girls wear. For the forty-three weeks ended November 28, 2004, total sales increased approximately 1.9% to $346.5 million, versus $340.2 million in the corresponding period of the previous fiscal year, while same-store sales decreased 0.1% when compared with the corresponding period of the previous fiscal year. During the month of November, 2004, the Company opened 3 new ALCO stores (in Texas, Missouri and Utah), converted one ALCO store into an ALCO Market Place store, and closed 1 Duckwall store. Store openings during the first forty-three weeks of the current fiscal year included 6 new ALCO stores, 3 ALCO Market Place stores (conversions), and 2 new Duckwall stores. No additional ALCO stores are scheduled to open during the balance of the fiscal year. Founded in 1901, Duckwall-ALCO Stores, Inc. is a leading regional retailer that operates 265 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 Investor Relations Counsel, RJ Falkner & Company, Inc., +1-800-377-9893, , for Duckwall-ALCO Stores, Inc. Web site: http://www.duckwall.com/

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