Duckwall-ALCO reports second-quarter results

-- Home Textiles Today, 9/16/2009 10:36:00 AM

Abilene, Kan. – Midwest regional discount department store chain Duckwall-ALCO – which operates under two nameplates, Duckwall and ALCO – reported increased sales for the second quarter ended Aug. 2.

Sales from continuing operations for decreased 1.6% to $123.4 million and same-store sales decreased 3.0%. Net sales from continuing operations year-to-date increased 4.1% to $237.6 million and same-store sales increased 1.2%. Net earnings for the second quarter were $3.0 million, or 78 cents per diluted share, compared to net earnings of $3.3 million, or 85 cents per diluted share, for the second quarter of the prior fiscal year.

During yesterday’s investor conference call, Royce Winsten, chairman, said, “the company has performed well in a difficult retail environment.” He cited the company’s marketing overhaul and addition of new products and categories as positive factors. The company also has plans to open eight stores this year and 20 next year in existing markets.

Larry Zigerelli, president and ceo,said, “Strong fiscal year-to-date earnings reflect progressin both top and bottom line performance. Continued gross margin improvement is especially encouraging in the face of a weakened economy. All elements of our strategic transformation plan that began last fall remain on or ahead of schedule. We expect continued progress near term.”