| Kansas                                                         | 48-0201080                           |
|----------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
|                                                           |                                 |
| 401 Cottage StreetAbilene, Kansas                              |  67410-2832                     |
| (Address of principal executive offices)                       | (Zip Code)                           |

| Large accelerated filer [ ]              | Accelerated filer [ ]    |
|-----------------------------------------------|------------------------------------|
|                                          |                               |
| Non-accelerated filer [ ]                | Smaller reporting company [x] |
| (Do not check if a smaller reporting company) |                               |

----

| TABLE OF CONTENTS |
|-------------------|
|              |   |   |   |
| PART I            | FINANCIAL INFORMATION |   |
|              | Item 1. | Financial Statements | 3 |
|              |   | Balance Sheets | 3 |
|              |   | Statements of Operations | 4 |
|              |   | Statements of Cash Flows | 5 |
|              | Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | 9 |
|              | Item 3. | Controls and Procedures | 17 |
|              |   |   |   |
| PART II           | OTHER INFORMATION |   |
|              | Item 1. | Legal Proceedings | 17 |
|              | Item 1A. | Risk Factors | 17 |
|              | Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 17 |
|              | Item 3. | Defaults Upon Senior Securities | 17 |
|              | Item 4. | Reserved | 17 |
|              | Item 5. | Other Information | 17 |
|              | Item 6. | Exhibits | 17 |
|              |   |   |   |
| Signature         |   |   | 20 |

----

|                                                                                                                                                                   |   | July 31,2011 |    | January 30,2011 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|---------|----------------------|--------|
|                                                                                                                                                                   |   | (Unaudited)  |    |                 |   |
| Assets                                                                                                                                                                 |   |         |    |                 |   |
| Current assets:                                                                                                                                                        |   |         |    |                 |   |
| Cash and cash equivalents                                                                                                                                              |   | $            | 6,431   |                 | $      | 4,189 |   |
| Receivables                                                                                                                                                            |   | 8,665        |    | 6,847                |   |
| Prepaid income taxes                                                                                                                                                   |   | 158          |    | 168                  |   |
| Inventories                                                                                                                                                            |   | 160,133      |    | 151,079              |   |
| Prepaid expenses                                                                                                                                                       |   | 3,992        |    | 3,720                |   |
| Deferred income taxes                                                                                                                                                  |   | 2,940        |    | 2,563                |   |
| Property held for sale                                                                                                                                                 |   | 856          |    | 884                  |   |
| Total current assets                                                                                                                                                   |   | 183,175      |    | 169,450              |   |
|                                                                                                                                                                   |   |         |    |                 |   |
| Property and equipment, at cost:                                                                                                                                       |   |         |    |                 |   |
| Land and land improvements                                                                                                                                             |   | 1,496        |    | 1,496                |   |
| Buildings and building improvements                                                                                                                                    |   | 11,847       |    | 11,828               |   |
| Furniture, fixtures and equipment                                                                                                                                      |   | 69,851       |    | 69,924               |   |
| Transportation equipment                                                                                                                                               |   | 803          |    | 1,305                |   |
| Leasehold improvements                                                                                                                                                 |   | 16,559       |    | 16,449               |   |
| Construction work in progress                                                                                                                                          |   | 1,688        |    | 350                  |   |
| Total property and equipment                                                                                                                                           |   | 102,244      |    | 101,352              |   |
| Less accumulated depreciation and amortization                                                                                                                         |   | 75,768       |    | 72,788               |   |
| Net property and equipment                                                                                                                                             |   | 26,476       |    | 28,564               |   |
|                                                                                                                                                                   |   |         |    |                 |   |
| Property under capital leases                                                                                                                                          |   | 22,254       |    | 22,254               |   |
| Less accumulated amortization                                                                                                                                          |   | 11,109       |    | 10,727               |   |
| Net property under capital leases                                                                                                                                      |   | 11,145       |    | 11,527               |   |
|                                                                                                                                                                   |   |         |    |                 |   |
| Deferred income taxes — non current                                                                                                                              |   | 2,082        |    | 2,180                |   |
| Other non-current assets                                                                                                                                               |   | 886          |    | 990                  |   |
| Total assets                                                                                                                                                           |   | $            | 223,764 |                 | $      | 212,711 |   |
|                                                                                                                                                                   |   |         |    |                 |   |
| Liabilities and Stockholders’ Equity                                                                                                                             |   |         |    |                 |   |
| Current liabilities:                                                                                                                                                   |   |         |    |                 |   |
| Current maturities of long-term debt                                                                                                                                   |   | $            | 653     |                 | $      | 1,414 |   |
| Current maturities of capital lease obligations                                                                                                                        |   | 559          |    | 703                  |   |
| Accounts payable                                                                                                                                                       |   | 32,017       |    | 25,968               |   |
| Accrued salaries and commissions                                                                                                                                       |   | 3,725        |    | 4,133                |   |
| Accrued taxes other than income                                                                                                                                        |   | 5,003        |    | 4,822                |   |
| Self-insurance claim reserves                                                                                                                                          |   | 4,008        |    | 4,139                |   |
| Other current liabilities                                                                                                                                              |   | 4,372        |    | 4,608                |   |
| Total current liabilities                                                                                                                                              |   | 50,337       |    | 45,787               |   |
|                                                                                                                                                                   |   |         |    |                 |   |
| Notes payable under revolving loan                                                                                                                                     |   | 52,798       |    | 45,282               |   |
| Capital lease obligations - less current maturities                                                                                                                    |   | 11,370       |    | 11,673               |   |
| Deferred gain on leases                                                                                                                                                |   | 3,632        |    | 3,826                |   |
| Other non-current liabilities                                                                                                                                          |   | 1,916        |    | 1,850                |   |
| Total liabilities                                                                                                                                                      |   | 120,053      |    | 108,418              |   |
|                                                                                                                                                                   |   |         |    |                 |   |
| Stockholders’ equity:                                                                                                                                            |   |         |    |                 |   |
| Common stock, $.0001 par value, 20,000,000 authorized shares; 3,872,745 and 3,841,895 shares issued and outstanding at July 31, 2011 and January 30, 2011 respectively |   | 1            |    | 1                    |   |
| Additional paid-in capital                                                                                                                                             |   | 40,051       |    | 40,003               |   |
| Retained earnings                                                                                                                                                      |   | 63,659       |    | 64,289               |   |
| Total stockholders’ equity                                                                                                                                       |   | 103,711      |    | 104,293              |   |
| Total liabilities and stockholders’ equity                                                                                                                       |   | $            | 223,764 |                 | $      | 212,711 |   |

----

|                                                                                                                         | Thirteen Week Periods Ended |    | Twenty-Six Week Periods Ended |   |
|------------------------------------------------------------------------------------------------------------------------------|-----------------------------|---------|-------------------------------|--------|
|                                                                                                                         | July 31,2011                |    | August 1,2010*                |   | July 31,2011 |   | August 1,2010* |   |
| Net sales                                                                                                                    | $                           | 121,991 |                          | $      | 113,051 |   | $ | 236,214 |   | $ | 221,145 |   |
| Cost of sales                                                                                                                | 84,072                      |    | 76,990                        |   | 165,195 |   | 151,968 |   |
|                                                                                                                         |                        |    |                          |   |   |   |   |   |
| Gross margin                                                                                                                 | 37,919                      |    | 36,061                        |   | 71,019 |   | 69,177 |   |
|                                                                                                                         |                        |    |                          |   |   |   |   |   |
| Selling, general and administrative                                                                                          | 32,095                      |    | 34,628                        |   | 64,961 |   | 67,883 |   |
| Depreciation and amortization expenses                                                                                       | 2,138                       |    | 2,489                         |   | 4,327 |   | 4,963 |   |
|                                                                                                                         |                        |    |                          |   |   |   |   |   |
| Total operating expenses                                                                                                     | 34,233                      |    | 37,117                        |   | 69,288 |   | 72,846 |   |
|                                                                                                                         |                        |    |                          |   |   |   |   |   |
| Operating income (loss) from continuing operations                                                                           | 3,686                       |    | (1,056                        | )      | 1,731 |   | (3,669 | )  |
|                                                                                                                         |                        |    |                          |   |   |   |   |   |
| Interest expense                                                                                                             | 1,649                       |    | 721                           |   | 2,718 |   | 1,395 |   |
|                                                                                                                         |                        |    |                          |   |   |   |   |   |
| Earnings (loss) from continuing operations before income taxes                                                               | 2,037                       |    | (1,777                        | )      | (987 | ) | (5,064 | )  |
|                                                                                                                         |                        |    |                          |   |   |   |   |   |
| Income tax expense (benefit)                                                                                                 | 755                         |    | (609                          | )      | (369 | ) | (1,674 | )  |
|                                                                                                                         |                        |    |                          |   |   |   |   |   |
| Earnings (loss) from continuing operations                                                                                   | 1,282                       |    | (1,168                        | )      | (618 | ) | (3,390 | )  |
|                                                                                                                         |                        |    |                          |   |   |   |   |   |
| Earnings (loss) from discontinued operations, net of income tax expense (benefit) of $32, ($67), $8, and ($35), respectively | (52                         | )       | 109                           |   | (12 | ) | 56 |   |
| Net income (loss)                                                                                                            | $                           | 1,230   |                          | $      | (1,059 | ) | $ | (630 | ) | $ | (3,334 | )  |
|                                                                                                                         |                        |    |                          |   |   |   |   |   |
| Earnings (loss) per share                                                                                                    |                        |    |                          |   |   |   |   |   |
| Basic                                                                                                                        |                        |    |                          |   |   |   |   |   |
| Continuing operations                                                                                                        | $                           | 0.33    |                          | $      | (0.31 | ) | $ | (0.16 | ) | $ | (0.89 | )  |
| Discontinued operations                                                                                                      | (0.01                       | )       | 0.03                          |   | 0.00 |   | 0.02 |   |
|                                                                                                                         |                        |    |                          |   |   |   |   |   |
| Net earnings (loss) per share                                                                                                | $                           | 0.32    |                          | $      | (0.28 | ) | $ | (0.16 | ) | $ | (0.87 | )  |
|                                                                                                                         |                        |    |                          |   |   |   |   |   |
| Earnings (loss) per share                                                                                                    |                        |    |                          |   |   |   |   |   |
| Diluted                                                                                                                      |                        |    |                          |   |   |   |   |   |
| Continuing operations                                                                                                        | $                           | 0.33    |                          | $      | (0.31 | ) | $ | (0.16 | ) | $ | (0.89 | )  |
| Discontinued operations                                                                                                      | (0.01                       | )       | 0.03                          |   | 0.00 |   | 0.02 |   |
|                                                                                                                         |                        |    |                          |   |   |   |   |   |
| Net earnings (loss) per share                                                                                                | $                           | 0.32    |                          | $      | (0.28 | ) | $ | (0.16 | ) | $ | (0.87 | )  |

----

|                                                                                      |   | Twenty-Six Week Periods Ended |    |
|-------------------------------------------------------------------------------------------|--------|-------------------------------|---------|
|                                                                                      |   | July 31,2011                  |    | August 1,2010* |   |
|                                                                                      |   |                          |    |   |   |
| Cash flows from operating activities:                                                     |   |                          |    |   |   |
| Net loss                                                                                  |   | $                             | (630    | ) | $ | (3,334 | )  |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |   |                          |    |   |   |
|                                                                                      |   |                          |    |   |   |
| Depreciation and amortization                                                             |   | 4,328                         |    | 4,985 |   |
| Gain on sale of assets                                                                    |   | (139                          | )  | (7 | ) |
| Share-based compensation                                                                  |   | 182                           |    | 200 |   |
| Tax impact of stock options exercised (expired)                                           |   | (135                          | )       | 13 |   |
| Deferred income taxes                                                                     |   | (278                          | )       | (60 | )  |
| Changes in:                                                                               |   |                          |    |   |   |
| Receivables                                                                               |   | (1,676                        | )  | 2,042 |   |
| Prepaid expenses                                                                          |   | 10                            |    | (1,457 | )  |
| Inventories                                                                               |   | (9,054                        | )       | 207 |   |
| Prepaid income taxes                                                                      |   | (272                          | )  | (505 | )  |
| Accounts payable                                                                          |   | 6,049                         |    | 6,903 |   |
| Accrued salaries and commissions                                                          |   | (408                          | )  | 293 |   |
| Accrued taxes other than income                                                           |   | 181                           |    | 247 |   |
| Self-insured claims reserves                                                              |   | (131                          | )       | (672 | ) |
| Other assets and liabilities                                                              |   | 261                           |    | 396 |   |
| Net cash provided by (used in) operating activities                                       |   | (1,712                        | )       | 9,251 |   |
|                                                                                      |   |                          |    |   |   |
| Cash flows from investing activities:                                                     |   |                          |    |   |   |
| Proceeds from the sale of assets                                                          |   | 165                           |    | 640 |   |
| Acquisition of property and equipment                                                     |   | (1,998                        | )       | (3,495 | ) |
| Net cash used in investing activities                                                     |   | (1,833                        | )       | (2,855 | ) |
|                                                                                      |   |                          |    |   |   |
| Cash flows from financing activities:                                                     |   |                          |    |   |   |
| Net borrowings (pay downs) under revolving loan credit agreement                          |   | 7,516                         |    | (5,247 | ) |
| Excess tax benefit on stock options exercised                                             |   | —                       |    | (15 | ) |
| Proceeds from exercise of outstanding stock options                                       |   | —                       |    | 419 |   |
| Refinancing costs on revolving loan and term loan fees                                    |   | (520                          | )       | (1,300 | )  |
| Pay downs under term loan                                                                 |   | (761                          | )       | (714 | ) |
| Principal payments under capital lease obligations                                        |   | (448                          | )       | (1,013 | ) |
| Net cash provided by (used in) financing activities                                       |   | 5,787                         |    | (7,870 | ) |
|                                                                                      |   |                          |    |   |   |
| Net increase (decrease) in cash and cash equivalents                                      |   | 2,242                         |    | (1,474 | )  |
| Cash and cash equivalents at beginning of period                                          |   | 4,189                         |    | 5,164 |   |
|                                                                                      |   |                          |    |   |   |
| Cash and cash equivalents at end of period                                                |   | $                             | 6,431   |   | $ | 3,690 |   |

----

----

|                                         | Year Ended       |    |  Thirteen Week Periods Ended  |   | Twenty-Six Week Periods Ended |
|----------------------------------------------|------------------|---------|-----------------------------------------|--------|-------------------------------|
|                                         | January 30, 2011 |    | July 31, 2011                           |   | August 1, 2010                |   | July 31, 2011 |   | August 1, 2010 |
| Stock options granted                   |             | 145,000 |                                    | 22,500 |                          | —  |   | 22,500 |   | 100,000 |
|                                         |             |    |                                    |   |                          |   |   |   |   |   |
| Weighted average exercise price              | $                | 13.91   |                                    | 10.60  |                          | — |   | 10.60 |   | 14.34 |
|                                         |             |    |                                    |   |                          |   |   |   |   |   |
| Weighted average grant date fair value  | $                | 6.12    |                                    | 4.65   |                          | — |   | 4.65 |   | 6.36 |

|                                                                                          | Year Ended       |   |  Thirteen Week Periods Ended  |        | Twenty-Six Week Periods Ended |      |
|-----------------------------------------------------------------------------------------------|------------------|--------|-----------------------------------------|-------------|-------------------------------|-----------|
|                                                                                          | January 30, 2011 |   | July 31, 2011                           |        | August 1, 2010                |      | July 31, 2011 |   | August 1, 2010 |   |
| Expected price volatility                                                                     |             | 52.01  | %                                  | 58.37  | %                        |  N/A |   | 58.37 | % | 51.10 | % |
|                                                                                          |             |   |                                    |        |                          |      |   |   |   |   |   |
| Risk-free interest rate                                                                       |             | 1.27   | %                                  | 0.94        | %                             | N/A       |   | 0.94 | % | 1.50 | % |
|                                                                                          |             |   |                                    |        |                          |      |   |   |   |   |   |
| Weighted average expected lives in years                                                 |             | 4.6    |                                    | 3.8         |                          | N/A       |   | 3.8 |   | 4.8 |   |
|                                                                                          |             |   |                                    |        |                          |      |   |   |   |   |   |
| Dividend yield                                                                                |             | 0.00   | %                                       | 0.00        | %                             | N/A       |   | 0.00 | % | 0.00 | % |
|                                                                                          |             |   |                                    |        |                          |      |   |   |   |   |   |
| N/A – No stock options were issued during the thirteen week period ended August 1, 2010 |             |

|    | Thirteen Week Periods Ended  |   | Twenty-Six Week Periods Ended |
|---------|-----------------------------------|--------|-------------------------------|
|    | July 31, 2011                     |   | August 1, 2010                |   | July 31, 2011 |   | August 1, 2010 |
| Basic   | 3,841,932                         |   | 3,835,509                     |   | 3,841,914 |   | 3,823,332 |
|    |                              |   |                          |   |   |   |   |
| Diluted | 3,842,036                         |   | 3,835,509                     |   | 3,841,914 |   | 3,823,332 |

----

| · | the Company’s ability to hire, train, and retain qualified personnel;  |
|--------|-----------------------------------------------------------------------------------|

| · | the availability of adequate capital resources for us to purchase inventory, equipment, and fixtures and make other capital expenditures necessary for store expansion; and  |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | the ability of our landlords and developers to find appropriate financing in the current credit market to develop property to be leased by the Company  |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | On June 21, 2011, the Compensation Committee of the Board of Directors met and approved a new comprehensive Independent Director Compensation Policy, which provides for the amount and frequency of payment for the Company's independent directors. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On June 21, 2011, the Compensation Committee of the Board of Directors adopted a resolution which provided that the Compensation Committee shall not authorize or approve any new employment agreements between the Company and any Company employee that have any of the following provisions: (1) single-trigger change in control provisions; (2) evergreen provisions; or (3) tax gross-up provisions (collectively, these provisions are the "Prohibited Provisions"). The Compensation Committee has offered each Tom L. Canfield, Jr., Wayne S. Peterson and Edmond C. Beaith 7,500 stock options contingent on each of the stated executive officer's execution of a new employment agreement that does not provide any Prohibited Provisions. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On June 21, 2011, the Board of Directors approved and adopted new Amended and Restated Bylaws of the Company. |
|--------------------|---------------------------------------------------------------------------------------------------------------|

| ·   | On July 21, 2011, the Company closed on a new Credit Agreement with Wells Fargo National Association, which has a term of five years and provides the Company with a $120.0 million revolving credit facility and replaces the Company's previous credit facility. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Net sales from continuing operations increased $8.9 million, or 7.9%, to $122.0 million compared to $113.1 million for the second quarter of fiscal 2011.  |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Gross margin percentage decreased to 31.1% of sales compared to 31.9% in the second quarter of fiscal 2011. |
|--------|-------------------------------------------------------------------------------------------------------------|

| ·   | Net earnings per share were $0.32 compared to a net loss of $0.28 per share in the second quarter of fiscal 2011.   |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------|

| · | Earnings from continuing operations before interest, taxes, depreciation and amortization, share-based compensation, pre-opening costs and store transformation project costs (“Adjusted EBITDA”) was $6.0 million compared to $1.7 million in the second quarter of fiscal 2011. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                              | Thirteen Week Periods Ended |   | Twenty-Six Week Periods Ended |   |
|-------------------------------------------------------------------|----------------------------------|--------|-------------------------------|--------|
|  (dollars in thousands, except square footage ratios)        | July 31,2011                     |   | August 1,2010                 |   | July 31,2011 |   | August 1,2010 |   |
| SG&A Expenses Breakout                                        |                             |   |                          |   |   |   |   |   |
| Store support center (1)                                          | $                                | 4,694  |                          | $      | 5,685 |   | $ | 10,057 |   | $ | 11,516 |   |
| Distribution center                                               | 1,699                            |   | 2,395                         |   | 3,614 |   | 4,570 |   |
| 401K expense                                                      | —                          |   | 102                           |   | — |   | 125 |   |
| Same-store SG&A                                               | 25,299                           |   | 26,129                        |   | 50,301 |   | 51,064 |   |
| Non same-store SG&A (2)                                       | 321                              |   | 198                           |   | 807 |   | 408 |   |
| Share-based compensation                                          | 82                               |   | 119                           |   | 182 |   | 200 |   |
| SG&A as reported                                              | 32,095                           |   | 34,628                        |   | 64,961 |   | 67,883 |   |
| Less:                                                             |                             |   |                          |   |   |   |   |   |
| Share-based compensation                                          | (82                              | )      | (119                          | )      | (182 | ) | (200 | ) |
| Preopening store costs (2)                                        | (3)                              |   | (183                          | )      | (3 | ) | (382 | ) |
| Executive and staff severance (1)                                 | (55                              | )      | —                       |   | (131 | ) | — |   |
| Adjusted SG&A                                                 | $                                | 31,955 |                          | $      | 34,326 |   | $ | 64,644 |   | $ | 67,301 |   |
|                                                              |                             |   |                          |   |   |   |   |   |
| Adjusted SG&A % of sales                                      | 26.2                             | %      | 30.4                          | %      | 27.4 | % | 30.4 | % |
|                                                              |                             |   |                          |   |   |   |   |   |
| Sales per average selling square foot (3)                         | $                                | 27.88  |                          | $      | 26.38 |   | $ | 53.98 |   | $ | 51.60 |   |
|                                                              |                             |   |                          |   |   |   |   |   |
| Adjusted Gross Margin dollars per average selling square feet (3) | $                                | 8.66   |                          | $      | 8.41 |   | $ | 16.23 |   | $ | 16.14 |   |
|                                                              |                             |   |                          |   |   |   |   |   |
| Adjusted SG&A per average selling square foot (3)             | $                                | 7.30   |                          | $      | 8.01 |   | $ | 14.77 |   | $ | 15.70 |   |
|                                                              |                             |   |                          |   |   |   |   |   |
| Adjusted EBITDA per average selling square foot (3)(4)            | $                                | 1.36   |                          | $      | 0.40 |   | $ | 1.46 |   | $ | 0.44 |   |
|                                                              |                             |   |                          |   |   |   |   |   |
| Average inventory per average selling square foot (3)(5)(6)       | $                                | 32.19  |                          | $      | 25.80 |   | $ | 30.52 |   | $ | 26.22 |   |
|                                                              |                             |   |                          |   |   |   |   |   |
| Average selling square feet (3)                                   | 4,376                            |   | 4,286                         |   | 4,376 |   | 4,286 |   |
|                                                              |                             |   |                          |   |   |   |   |   |
| Total stores operating beginning of period                        | 214                              |   | 255                           |   | 214 |   | 258 |   |
| Total stores operating end of period                              | 213                              |   | 257                           |   | 213 |   | 257 |   |
| Total stores less than twelve months old                          | 2                                |   | 3                             |   | 2 |   | 3 |   |
| Total non same-stores                                             | 3                                |   | 3                             |   | 3 |   | 3 |   |
|                                                              |                             |   |                          |   |   |   |   |   |
| Supplemental Data:                                                |                             |   |                          |   |   |   |   |   |
| Same-store adjusted gross margin dollar change                    | 4.3                              | %      | (11.6                         | )%     | 1.3 | % | (11.1 | )% |
| Same-store SG&A dollar change                                 | (3.2)                            | %      | 2.7                           | %      | (1.5 | )% | 0.8 | % |
| Same-store total customer count change                            | (2.0)                            | %      | (4.4                          | )%     | (2.6 | )% | (3.2 | )% |
| Same-store average sale per ticket change                         | 9.4                              | %      | (2.8                          | )%     | 8.1 | % | (1.8 | )% |

|   | (1)   Store support center includes severance for second quarter fiscal 2012. |
|--------|----------------------------------------------------------------------------------------------|

|   | (2)   Non same-stores are those stores which have not reached their fourteenth period of operation. |
|--------|--------------------------------------------------------------------------------------------------------------------|

|   | (3)   Average selling square feet is calculated as beginning square feet plus ending square feet divided by 2 |
|--------|------------------------------------------------------------------------------------------------------------------------------|

|   | (4)   Adjusted EBITDA per average selling square foot is calculated as Adjusted EBITDA divided by average selling square feet |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5)   Average store level merchandise inventory is calculated as beginning inventory plus ending inventory divided by 2 |
|--------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | (6)   Excludes inventory for unopened stores |
|--------|-------------------------------------------------------------|

|                                               |             |    | Thirteen Week Periods Ended |   | Trailing 52 Weeks Ended |    | Thirteen Week Periods Ended |   | Trailing 52 Weeks Ended |   |
|----------------------------------------------------|------------------|---------|---------------------------------------|--------|------------------------------|---------|---------------------------------------|--------|------------------------------|--------|
|  (dollars in thousands)                       | Fiscal 2011 |    | May 1,2011                            |   | May 2,2010                   |    | May 1,2011                            |   | July 31,2011                 |   | August 1,2010 |   | July 31,2011 |   |
| Net earnings (loss) from continuing operations (1) | $                | (3,471  | )                                | (1,900 | )                            | (2,221  | )                                | (3,150 | )                            | 1,282  |   | (1,168 | ) | (700 | ) |
| Plus:                                              |             |    |                                  |   |                         |    |                                  |   |                         |   |   |   |   |   |
| Interest                                           | 3,502            |    | 1,069                                 |   | 674                          |    | 3,897                                 |   | 1,649                        |   | 721 |   | 4,825 |   |
| Tax expense (benefit) (1)                          | (2,414           | )  | (1,124                                | )      | (1,065                       | )  | (2,473                                | )      | 755                          |   | (609 | ) | (1,109 | ) |
| Depreciation and amortization (1)                  | 10,001           |    | 2,189                                 |   | 2,474                        |    | 9,716                                 |   | 2,138                        |   | 2,489 |   | 9,365 |   |
| Share-based compensation                           | 333              |    | 100                                   |   | 81                           |    | 352                                   |   | 82                           |   | 119 |   | 315 |   |
| Preopening store costs (2)                         | 543              |    | —                               |   | 199                          |    | 344                                   |   | 3                            |   | 183 |   | 164 |   |
| Executive and staff severance                      | 540              |    | 76                                    |   | —                      |    | 616                                   |   | 55                           |   | — |   | 671 |   |
| Store reset costs                                  | 895              |    | —                               |   | —                      |    | 895                                   |   | —                      |   | — |   | 895 |   |
| AWG transition costs                               | 210              |    | —                               |   | —                      |    | 210                                   |   | —                      |   | — |   | 210 |   |
| =Adjusted EBITDA (1) (3)(4)(5)                     | 10,139           |    | 410                                   |   | 142                          |    | 10,407                                |   | 5,964                        |   | 1,735 |   | 14,636 |   |
|                                               |             |    |                                  |   |                         |    |                                  |   |                         |   |   |   |   |   |
| Cash                                               | 4,189            |    | 5,720                                 |   | 5,186                        |    | 5,720                                 |   | 6,431                        |   | 3,690 |   | 6,431 |   |
| Debt                                               | 59,072           |    | 64,815                                |   | 34,569                       |    | 64,815                                |   | 65,380                       |   | 40,090 |   | 65,380 |   |
| Debt, net of cash                                  | $                | 54,883  |                                  | 59,095 |                         | 29,383  |                                  | 59,095 |                         | 58,949 |   | 36,400 |   | 58,949 |   |

|   | (1)   These amounts may not agree with 10-Qs of previous quarters due to subsequent store closures. These closed stores are now included in discontinued operations. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2)   These costs are not consistent quarter to quarter as the Company does not open the same number of stores in each quarter of each fiscal year.  These costs are directly associated with the number of stores that have been or will be opened and are incurred prior to the grand opening of each store. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3)   For the trailing twelve periods ended July 31, 2011 the average open weeks for the Company’s two, non-same stores was 40 weeks. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4)   During fiscal year 2011, the Company made changes in its executive management team and warehouse operations.  For the trailing twelve periods ended July 31, 2011, these initiatives resulted in approximately $1.6 million reduced SG&A expenses when compared to the same prior year trailing twelve periods.  The initiatives include, but are not limited to, executive and staff reduction. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                            |   | Thirteen Week Periods Ended |   |          | Twenty-Six Week Periods Ended |   |
|---------------------------------|--------|-----------------------------|--------|---------------|-------------------------------|--------|
|                            |   | July 31,2011                |   | August 1,2010 |                          |   | July 31,2011 |   | August 1,2010 |   |
| Merchandise Category:           |   |                        |   |          |                          |   |   |   |   |   |
| Hardlines                       |   | 35                          | %      | 37            | %                             |   | 34 | % | 35 | % |
| Consumables and commodities     |   | 32                          | %      | 31            | %                             |   | 34 | % | 33 | % |
| Apparel and accessories         |   | 17                          | %      | 16            | %                             |   | 16 | % | 16 | % |
| Home furnishings and décor |   | 16                          | %      | 16            | %                             |   | 16 | % | 16 | % |
| Total                           |   | 100                         | %      | 100           | %                             |   | 100 | % | 100 | % |

----

| Period                 |   | Total Number ofShares (or Units)Purchased |   | Average Price PaidPer Share (or Unit) |   | Total Number ofShares (or Units)Purchased as PartOf Publicly AnnouncedPlans or Programs |   | Maximum Number(or Approximate DollarValue) of Shares (orUnits) that May YetBe Purchased UnderThe Plans or Programs |
|------------------------|--------|---------------------------------------------------------------|--------|----------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| As of January 30, 2011 |   | 25,534                                                        |   | 15.16                                                          |   | 25,534                                                                                                                                    |   | 174,466                                                                                                                                                                             |
|                   |   |                                                          |   |                                                           |   |                                                                                                                                      |   |                                                                                                                                                                                     |
| First quarter:         |   | —                                                       |   | —                                                        |   | —                                                                                                                                   |   |                                                                                                                                                                                     |
| Second quarter:        |   |                                                          |   |                                                           |   |                                                                                                                                      |   |                                                                                                                                                                                     |
| Month 1                |   | —                                                       |   | —                                                        |   | —                                                                                                                                   |   |                                                                                                                                                                                     |
| Month 2                |   | —                                                       |   | —                                                        |   | —                                                                                                                                   |   |                                                                                                                                                                                     |
| Month 3                |   | —                                                       |   | —                                                        |   | —                                                                                                                                   |   |                                                                                                                                                                                     |
|                   |   |                                                          |   |                                                           |   |                                                                                                                                      |   |                                                                                                                                                                                     |
|                   |   |                                                          |   |                                                           |   |                                                                                                                                      |   |                                                                                                                                                                                     |
| As of July 31, 2011    |   | 25,534                                                        |   | $                                                              | 15.16  |                                                                                                                                      | 25,534 |                                                                                                                                                                                     | 174,466 |

----

| Number |   | Description                                                                                                                                                                                                                                                                                                                                    |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                           |
| 3.1    |   | Amended and Restated Articles of Incorporation of Duckwall-ALCO Stores, Inc., amended as of June 13, 1994 and restated solely for filing with the Securities and Exchange Commission (filed as Exhibit 3.1 to Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended August 1, 2004 and incorporated herein by reference). |
|   |   |                                                                                                                                                                                                                                                                                                                                           |
| 3.2    |   | Amended and Restated  Bylaws of Duckwall-ALCO Stores, Inc. is incorporated herein by reference to Exhibit 3.3 to the Current Report on Form 8-K of the Company dated June 27, 2011.                                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                                                                                                                           |
| 4.1    |   | Specimen of Duckwall-ALCO Stores, Inc. Common Stock Certificate (filed as Exhibit 4.1 to Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended August 3, 2008 and incorporated herein by reference).                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                           |
| 4.2    |   | Reference is made to the Amended and Restated Articles of Incorporation described under 3.1 above, and the Amended and Restated Bylaws described under 3.2 above.                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                           |
| 10.1   |   | Employment Agreement dated January 5, 2006 between the Company and Tom L. Canfield, Jr. is incorporated by reference as Exhibit 10.1 to the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2010.                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                           |
| 10.2   |   | Addendum to Employment Agreement dated December 31, 2008 between the Company and Tom L. Canfield, Jr. is incorporated by reference as Exhibit 10.2 to the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2010.                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                           |
| 10.3   |   | Stock Option Agreement between the Company and Tom Canfield, Jr. dated September 16, 2009 is incorporated herein by reference to Exhibit 10.3 to the Current Report on Form 8-K of the Company dated September 24, 2009.                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                           |
| 10.4   |   | Employment Agreement dated August 25, 2008 between the Company and Edmond C. Beaith is incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K of the Company dated August 25, 2008.                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                           |
| 10.5   |   | Stock Option Agreement dated March 13, 2009 between the Company and Edmond C. Beaith is incorporated by reference to Exhibit 10.5 to the Current Report on Form 8-K of the Company dated March 20, 2009.                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                           |
| 10.6   |   | Employment Agreement dated December 11, 2009 between the Company and James M. Spencer is incorporated by reference to Exhibit 10.6 to the Current Report on Form 8-K of the Company dated December 17, 2009.                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                           |
| 10.7   |   | Director Special Bonus Payment.  On December 31, 2009, Royce Winsten, the Chairman of the Board of Directors of the Company, was awarded a special bonus for the amount of $50,000, which is incorporated by reference to Exhibit 10.7 to the Current Report on Form 8-K of the Company dated January 12, 2010.                      |
|   |   |                                                                                                                                                                                                                                                                                                                                           |
| 10.8   |   | Resignation of James M. Spencer, incorporated herein by reference to Exhibit 10.8 on Current Report Form 8-K of the Company dated February 8, 2010.                                                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                           |
| 10.9   |   | Loan and Security Agreement, dated as of February 10, 2010, between the Company and Bank of America, N.A., and Wells Fargo Retail Finance, LLC incorporated by reference to Exhibit 10.9 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended May 2, 2010.                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                           |
| 10.10  |   | Employment Agreement dated February 11, 2010 between the Company and Richard E. Wilson is incorporated by reference to Exhibit 10.10 to the Current Report on Form 8-K of the Company dated February 25, 2010.                                                                                                                                 |
|   |   |                                                                                                                                                                                                                                                                                                                                           |
| 10.11  |   | Stock Option Agreement dated February 11, 2010 between the Company and Richard E. Wilson is incorporated by reference to Exhibit 10.11 to the Current Report on Form 8-K of the Company dated February 25, 2010.                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                           |
| 10.12  |   | Resignation of Director. On March 2, 2010 James V. Worth resigned from the Board of Directors is incorporated by reference to Exhibit 10.12 to the Current Report on Form 8-K of the Company dated March 2, 2010.                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                           |
| 10.13  |   | Separation Agreement and Release, dated as of March 17, 2010, between the Company and Lawrence J. Zigerelli, is incorporated by reference to Exhibit 10.13 to the Current Report on Form 8-K of the Company dated March 16, 2010.                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                           |
| 10.14  |   | Employment Agreement dated September 20, 2010 between the Company and Wayne S. Peterson is incorporated by reference to Exhibit 10.14 to the Current Report on Form 8-K of the Company dated September 22, 2010.                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                           |
| 10.15  |   | Stock Option Agreement dated September 20, 2010 between the Company and Wayne S. Peterson is incorporated by reference to Exhibit 10.15 to the Current Report on Form 8-K of the Company dated September 22, 2010.                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                           |
| 10.16  |   | Resignation of Director. On December 27, 2010 Raymond A.D. French resigned from the Board of Directors and such resignation is incorporated by reference to Exhibit 10.16 to the current Report on Form 8-K of the Company dated December 30, 2010.                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                           |
| 10.17  |   | Separation and Release Agreement dated May 13, 2010 between the Company and Jane F. Gilmartin is incorporated herein by reference to Exhibit 10.17 to the Current Report on Form 8-K of the Company dated May 19, 2010.                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                           |
| 10.18  |   | Indemnification Agreements between the Company and Royce Winsten, Raymond A.D. French, Lolan C. Mackey and Dennis E. Logue all dated June 14, 2010 incorporated herein by reference to Exhibit 10.18 on Current Report Form 8-K filed by the Company on June 18, 2010.                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                           |
| 10.19  |   | Resignation of Donny Johnson incorporated herein by reference to Exhibit 10.19 on Current Report Form 8-K of the Company dated July 15, 2010.                                                                                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                                                                                                                           |
| 10.20  |   | Indemnification Agreement between the Company and Richard E. Wilson dated August 24, 2010 incorporated herein by reference to Exhibit 10.20 on Current Report Form 8-K of the Company dated August 27, 2010.                                                                                                                                   |

| 10.21                                                                   |   | Indemnification Agreement between the Company and Terrence M. Babilla dated September 2, 2010 incorporated herein by reference to Exhibit 10.21 on Current Report Form 8-K of the Company dated September 9, 2010.                                                                                                                                                                                                                                                                                                                                                                                                                      |
|-------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.22                                                                   |   | Stock Option Agreement between the Company and Terrence M. Babilla dated September 10, 2010 incorporated herein by reference to Exhibit 10.22 on Current Report Form 8-K of the Company dated September 16, 2010.                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                                    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.23                                                                   |   | Credit Agreement dated as of July 21, 2011, between Duckwall-ALCO Stores, Inc. and Wells Fargo National Bank Association incorporated by reference to Exhibit 10.23 on Current Report Form 8-K of the Company dated July 27, 2011.                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.24                                                                   |   | Independent Director Compensation Policy is incorporated by reference to Exhibit 10.24 to the Current Report on Form 8-K of the Company dated June 27, 2011.                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 31.1                                                                    |   | Certification of Chief Executive Officer of Duckwall-ALCO Stores, Inc. dated September 9, 2011, pursuant to Rule 13a-4(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 31.2                                                                    |   | Certification of Chief Financial Officer of Duckwall-ALCO Stores, Inc. dated September 9, 2011, pursuant to Rule 13a-4(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 32.1                                                                    |   | Certification of Chief Executive Officer of Duckwall-ALCO Stores, Inc. dated September 9, 2011, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, which is furnished with this Quarterly Report on Form 10-Q for the quarter ended July 31, 2011 and is not treated as filed in reliance upon § 601(b)(32) of Regulations S-K.                                                                                                                                                                                                                                             |
|                                                                    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 32.2                                                                    |   | Certification of Chief Financial Officer of Duckwall-ALCO Stores, Inc. dated September 9, 2011, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, which is furnished with this Quarterly Report on Form 10-Q for the quarter ended July 31, 2011 and is not treated as filed in reliance upon § 601(b)(32) of Regulations S-K.                                                                                                                                                                                                                                        |
| 101                                                                     |   | The following financial information from the Company’s Quarterly Report on Form 10-Q for the period ended July 31, 2011, filed with the SEC on September 9, 2011, formatted in Extensible Business Reporting Language (XBRL): (i) the Consolidated Statement of Operations for the thirteen week and twenty-six week periods ended July 31, 2011 and August 1, 2010, (ii) the Consolidated Balance Sheet at July 31, 2011 and January 30, 2011, (iii) the Consolidated Statement of Cash Flows for the twenty-six week periods ended July 31, 2011 and August 1, 2010, and (iv) Notes to Consolidated Financial Statements.  |
|  Exhibit Index as of September 26, 2011 for this Form 10-Q/A  |
|                                                                    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 31.1                                                                    |   | Certification of Chief Executive Officer of Duckwall-ALCO Stores, Inc. dated September 26, 2011, pursuant to Rule 13a-4(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 31.2                                                                    |   | Certification of Chief Financial Officer of Duckwall-ALCO Stores, Inc. dated September 26, 2011, pursuant to Rule 13a-4(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 32.1                                                                    |   | Certification of Chief Executive Officer of Duckwall-ALCO Stores, Inc. dated September 26, 2011, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, which is furnished with this Amendment No. 1 of the Quarterly Report on Form 10-Q/A for the quarter ended July 31, 2011 and is not treated as filed in reliance upon § 601(b)(32) of Regulations S-K.                                                                                                                                                                                                              |
|                                                                    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 32.2                                                                    |   | Certification of Chief Financial Officer of Duckwall-ALCO Stores, Inc. dated September 26, 2011, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, which is furnished with this Amendment No. 1 to this Quarterly Report on Form 10-Q/A for the quarter ended July 31, 2011 and is not treated as filed in reliance upon § 601(b)(32) of Regulations S-K.                                                                                                                                                                                                                  |

----

| Signature and Title                             |   |   | Date               |
|-------------------------------------------------|--------|--------|--------------------|
|                                            |   |   |               |
| /s/ Richard E. Wilson                           |   |   | September 26, 2011 |
| Richard E. Wilson                               |   |   |               |
| President and Chief Executive Officer           |   |   |               |
| (Principal Executive Officer)                   |   |   |               |
|                                            |   |   |               |
| /s/ Wayne S. Peterson                           |   |   | September 26, 2011 |
| Wayne S. Peterson                               |   |   |               |
| Senior Vice President - Chief Financial Officer |   |   |               |
| (Principal Financial and Accounting Officer)    |   |   |               |
|                                            |   |   |               |

----