1. Market Data
December 18, 2013

ALCO records steep loss

US-based variety store chain ALCO Stores has posted Q3 results, reporting a wider loss of $16.6m, compared with a loss of $1.4m, a year earlier.

US-based variety store chain ALCO Stores has posted Q3 results, reporting a wider loss of $16.6m, compared with a loss of $1.4m, a year earlier.

Net sales from continuing operations, excluding fuel, increased 1.0% to $105.4m during the third quarter of fiscal 2014, compared to $104.3m in the third quarter of fiscal 2013.

Same-store sales, excluding fuel, decreased 2.9% to $101.1m during the third quarter of fiscal 2014. For the 39 weeks ended 3 November 2013, net sales from continuing operations, excluding fuel, increased 1.7% compared to the same period of the prior year to $338.7m.

Same-store sales, excluding fuel, decreased 1.5% to $327.6m during the same period.

Net loss for the third quarter was $16.6m, compared to a net loss of $1.4m, for the third quarter of fiscal 2013.

Net loss for the 39 weeks ended 3 November 2013 was $17.8m, compared to net loss of $0.7m, for the 39 weeks ended 28 October 2012.

ALCO Stores president and CEO Richard Wilson commented, "Operating results in the third quarter were impacted by several significant one-time events, as we dealt with a proposed merger and also took steps to fix long-term problems that have hurt ALCO’s profitability."

"We recorded approximately $1.1 million in merger-related costs. We experienced a net reduction in gross margin dollars of approximately $5 million, primarily due to increased promotional activity in an attempt to reduce inventory and debt levels. In addition, ALCO has closed eight underperforming stores in the first three quarters of fiscal 2014 and decided in October to close 10 more locations by year-end," he added.