ABILENE, Kan. — Duckwall-ALCO Stores Inc. posted decreased revenue and same-store sales for its fiscal 2011 first quarter.
Duckwall-ALCO Stores Inc. posted decreased revenue and same-store sales for its fiscal 2011 first quarter.
The regional discount store chain, which focuses on small markets, said Thursday that net sales from continuing operations for the 13-week quarter ended May 2 fell 1.9% to $113 million, and same-store sales decreased 2.7%.
Duckwall-ALCO also recorded a bigger loss. The company said the net loss for the first quarter was $1.9 million, or 51 cents per diluted share, compared with a net loss of $50,000, or 1 cent per diluted share, in the prior-year period.
"First-quarter results were negatively impacted by weak sales, which reduced gross margin contribution by approximately $950,000," Duckwall-ALCO president and chief executive officer Richard Wilson said in a statement. "We needed to take $1.4 million in clearance markdowns to address aged inventory, and sales mix also impacted results by approximately
"We continued to make progress on selling, general and administrative expense, with an overall reduction of $789,000 primarily as a result of additional savings on store labor and benefits," he stated.
Wilson added that for fiscal 2011, the retailer is focusing on five core initiatives: providing "everyday value" with a core assortment of high-quality, competitively priced merchandise; driving traffic with expanded food and consumable assortments; improving profitability and prices, with an emphasis on growing private-label products; rationalizing assortments to provide a better shopping experience and improve operating results; and building store productivity by refining space allocation and productivity metrics.
Duckwall-ALCO operates 256 stores in 23 states, primarily in the central United States.