Duckwall-AlCO misses goal, blames weather

ABILENE, Kan. Duckwall-ALCO Stores today reported a net loss of $2.2 million, or 59 cents per share, for the first quarter ended April 29. This compares with net earnings of $541,000, or 14 cents per diluted share, in the first quarter of the prior fiscal year. The company attributes the decline to increases in operating expenses offset by increased gross margin.

Net sales from continuing operations for the first quarter increased 2.9% to $111.4 million, while same-store sales increased 1.2%. The company cites weather-dependent categories and increases in the price of gasoline as having an unfavorable impact on sales.

Commenting on the results of the first quarter of fiscal 2008, Bruce Dale, president and ceo stated, "The timing of several expense items negatively affected our first quarter compared with last year's first quarter. Nevertheless, our primary challenge in the quarter was our sales shortfall. We missed our sales plan by over $5 million dollars for the quarter, with only a 1.2% comparable-store increase. Inclement weather, particularly in February and April, was the primary reason. We remain confident in our business model."

The company also updated its Adjusted EBITDA guidance for the full fiscal year ended Feb. 3, 2008, to the range of $27 million to $30 million. This update is due to the results of the first quarter of fiscal 2008.