Duckwall-ALCO plunges on sour outlook
Duckwall-ALCO Stores, Inc. (Nasdaq: DUCK) shares are diving after the general merchandise retailer said it expects 2008 earnings before interest, taxes, depreciation and amortization (EBITDA) of approximately $13 million, down 32% from $19 million in 2007.
"We believe the financial shortfalls stemmed from a lack of effective execution on specific operational goals," interim CEO Donny Johnson said in a statement.
The Abilene, Kan.-based company said it will not give fiscal 2009 guidance until its board and management team have analyzed Duckwall’s operating performance and the impact of the current economic environment. The company is also searching for a new CEO.
Warren Gfeller, Duckwall’s chairman of the board, said he found the firm’s preliminary financial results “disappointing and unacceptable.”
“However, we continue to have confidence in Duckwall-ALCO's long-term strategy and positioning as a regional retailer offering an exceptional product selection in stores that represent an economic mainstay for communities across the central United States,” Gfeller said in a statement.
In afternoon trading, DUCK shares are plunging to a new year low — down 23%, or $4.69, at $15.70. Over the last 52 weeks, shares have ranged from $20 to $41.64.
