ShopKo Updates First Quarter Earnings Outlook

Apr 26, 2001, 01:00 ET from ShopKo Stores, Inc.

    GREEN BAY, Wis., April 26 /PRNewswire/ -- ShopKo Stores, Inc. (NYSE:   SKO)
 today announced that it expects to report a first quarter loss of
 approximately $0.14 to $0.18 per share.  The Company indicated that the
 expected loss is primarily attributable to the continued softness in the
 retail environment and inclement weather in the Midwest region.  Further, the
 Company indicated that the expected loss is primarily comprised of a sales
 shortfall to plan for both its operating divisions, accompanied by margin rate
 compression and distribution center inefficiencies at its Pamida division.
     William J. Podany, ShopKo chairman, president and chief executive officer,
 said, "Although we were encouraged by the improvement in the ShopKo comparable
 store sales trend when compared to last year's healthy performance, the Easter
 selling season did not produce the expected results in either operating
 division.  Clearly, the economic environment is more challenging than
 expected."
     Podany concluded, "Our focus continues to be to drive improvements in
 productivity and efficiency in both of our retail formats while reducing year
 end debt levels.  Additionally, we continue to manage our inventory levels and
 operating expenses."
 
     Business Outlook:
     ShopKo management believes that visibility going forward will be more
 difficult in the current business climate and may be subject to more
 variability than normal.  The Company will cover second quarter outlook and
 discussion on first quarter performance during a conference call scheduled for
 May 24, 2001.  Based on current trends and outlook, management anticipates
 that results may be below analysts' currently published earnings estimates for
 the next couple of quarters.
 
     Conference Call Information:
     The company will discuss first quarter results in a 10:30 a.m. CDT
 conference call on Thursday, May 24, 2001.  Those who wish to participate can
 dial 800-860-2442 and reference the ShopKo Stores, Inc. conference call.  If
 you are unable to participate in the call, an audio rebroadcast will be
 available from 12:30 p.m. CDT May 24 - May 31 at 11:00 p.m. CDT.  For audio
 playback, dial 877-344-7529 or 412-858-1440.  When prompted for your account
 number, dial 594#.  Dial 1 to play a recorded conference.  Dial 233886# when
 prompted to enter the conference number.  Dial 1 to begin the conference
 playback.  A simultaneous webcast of the call will also be available on
 ShopKo's website at http://www.shopko.com .  The audio will be archived for 90
 days beginning on Thursday, May 24, 2001.
 
     ShopKo Stores, Inc., a Fortune 500 company headquartered in Green Bay,
 Wis., operates 370 retail stores in 23 states, primarily in the Midwest,
 Western Mountain and Pacific Northwest regions.  Retail operations include
 141 specialty discount stores operating under the ShopKo name in mid-sized and
 larger cities, and 229 Pamida discount stores in smaller, rural communities.
 For more information about ShopKo or Pamida visit our website at
 http://www.shopko.com
 
     This press release contains forward-looking statements within the meaning
 of the safe harbor provisions of the Private Securities Litigation Reform Act
 of 1995, including statements regarding expected sales, expenses and first
 quarter earnings as well as other projected financial results.  Such
 statements are subject to important factors which could cause ShopKo's actual
 results to differ materially from those anticipated by the forward-looking
 statements.  These factors include those referenced in ShopKo's current Annual
 Report on Form 10-K or as may be described from time to time in ShopKo's
 subsequent SEC filings and such factors are incorporated by reference.
 
                      MAKE YOUR OPINION COUNT - Click Here
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SOURCE ShopKo Stores, Inc.
    GREEN BAY, Wis., April 26 /PRNewswire/ -- ShopKo Stores, Inc. (NYSE:   SKO)
 today announced that it expects to report a first quarter loss of
 approximately $0.14 to $0.18 per share.  The Company indicated that the
 expected loss is primarily attributable to the continued softness in the
 retail environment and inclement weather in the Midwest region.  Further, the
 Company indicated that the expected loss is primarily comprised of a sales
 shortfall to plan for both its operating divisions, accompanied by margin rate
 compression and distribution center inefficiencies at its Pamida division.
     William J. Podany, ShopKo chairman, president and chief executive officer,
 said, "Although we were encouraged by the improvement in the ShopKo comparable
 store sales trend when compared to last year's healthy performance, the Easter
 selling season did not produce the expected results in either operating
 division.  Clearly, the economic environment is more challenging than
 expected."
     Podany concluded, "Our focus continues to be to drive improvements in
 productivity and efficiency in both of our retail formats while reducing year
 end debt levels.  Additionally, we continue to manage our inventory levels and
 operating expenses."
 
     Business Outlook:
     ShopKo management believes that visibility going forward will be more
 difficult in the current business climate and may be subject to more
 variability than normal.  The Company will cover second quarter outlook and
 discussion on first quarter performance during a conference call scheduled for
 May 24, 2001.  Based on current trends and outlook, management anticipates
 that results may be below analysts' currently published earnings estimates for
 the next couple of quarters.
 
     Conference Call Information:
     The company will discuss first quarter results in a 10:30 a.m. CDT
 conference call on Thursday, May 24, 2001.  Those who wish to participate can
 dial 800-860-2442 and reference the ShopKo Stores, Inc. conference call.  If
 you are unable to participate in the call, an audio rebroadcast will be
 available from 12:30 p.m. CDT May 24 - May 31 at 11:00 p.m. CDT.  For audio
 playback, dial 877-344-7529 or 412-858-1440.  When prompted for your account
 number, dial 594#.  Dial 1 to play a recorded conference.  Dial 233886# when
 prompted to enter the conference number.  Dial 1 to begin the conference
 playback.  A simultaneous webcast of the call will also be available on
 ShopKo's website at http://www.shopko.com .  The audio will be archived for 90
 days beginning on Thursday, May 24, 2001.
 
     ShopKo Stores, Inc., a Fortune 500 company headquartered in Green Bay,
 Wis., operates 370 retail stores in 23 states, primarily in the Midwest,
 Western Mountain and Pacific Northwest regions.  Retail operations include
 141 specialty discount stores operating under the ShopKo name in mid-sized and
 larger cities, and 229 Pamida discount stores in smaller, rural communities.
 For more information about ShopKo or Pamida visit our website at
 http://www.shopko.com
 
     This press release contains forward-looking statements within the meaning
 of the safe harbor provisions of the Private Securities Litigation Reform Act
 of 1995, including statements regarding expected sales, expenses and first
 quarter earnings as well as other projected financial results.  Such
 statements are subject to important factors which could cause ShopKo's actual
 results to differ materially from those anticipated by the forward-looking
 statements.  These factors include those referenced in ShopKo's current Annual
 Report on Form 10-K or as may be described from time to time in ShopKo's
 subsequent SEC filings and such factors are incorporated by reference.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X25838175
 
 SOURCE  ShopKo Stores, Inc.

RELATED LINKS

http://www.shopko.com