Duckwall-ALCO sees 2Q earnings improvement

ABILENE, Kan. Duckwall-ALCO Stores announced that net earnings for the second quarter were $3.3 million, or 85 cents per diluted share, an improvement from net earnings of $2.6 million, or 68 cents per diluted share, in the second quarter of the prior fiscal year.

Net sales from continuing operations for the second quarter increased 8.9% to $129.6 million, while same-store sales decreased 2.1%.

Amajor contributor to the improved second quarter performance was the company-wide cost reduction program implemented during the first quarter. This program is expected to generate annual savings of approximately $6 million, including the previously announced $2.5 million.

Larry Zigerelli, president and ceo commented, "The improved second quarter profitability reflects the initial impact of our efforts to transform the Company to deliver better returns. We have taken further action to position the Company for improved top and bottom-line results as part of our new strategic plan."