Retail Ventures October Comps drop 0.2%

Retail Ventures reported sales for the month of October and revised its earnings estimate for the third quarter and fiscal 2004. For the four-week period of October, sales increased 8.2% to $231.8 million from $214.2 million in October 2003. Comparable store sales for October decreased by 0.2%. For the thirty-nine week year-to-date period, sales have increased by 5.5% to $1.98 billion from $1.87 billion in 2003 and comparable store sales have decreased by 0.7%.

Retail sales statistics are as follows:

                                        Four weeks ended ($ in thousands)
                                      October 30, 2004     November 1, 2003
                                          $        %          $         %
    Total Sales
     Value City Department Stores     $107,044   46.2    $113,315     52.9
     DSW Shoe Warehouse                 91,332   39.4      72,336     33.8
     Filene's Basement                  33,439   14.4      28,548     13.3
                                      $231,815  100.0    $214,199    100.0

    Comparable Sales Percentage
     Value City Department Stores                (5.5)%               (3.4)%
     DSW Shoe Warehouse                           6.8 %                9.1 %
     Filene's Basement                            5.8 %                4.4 %
                                                 (0.2)%                0.9 %


                                   Thirty-nine weeks ended ($ in thousands)
                                     October 30, 2004   November 1, 2003
                                         $         %        $           %
    Total Sales
     Value City Department Stores   $1,002,740   50.7  $1,054,809     56.3
     DSW Shoe Warehouse                711,488   36.0     591,146     31.5
     Filene's Basement                 263,464   13.3     227,810     12.2
                                    $1,977,692  100.0  $1,873,765    100.0

    Comparable Sales Percentage
     Value City Department Stores                (4.9)%               (0.4)%
     DSW Shoe Warehouse                           4.5 %                4.2 %
     Filene's Basement                            6.6 %                0.6 %
                                                 (0.7)%                0.9 %

“After taking into consideration the published results for the first half of the year and the October sales performance, we are revising the earnings guidance for the third quarter and now expect a loss of $0.03 to $0.05 per share,” stated Jim McGrady, Chief Financial Officer. “This guidance is down from the previous profit estimate of $0.11 to $0.15. The revised guidance for the quarter also impacts the estimate for the fiscal year, which is now anticipated to be a profit of $0.23 to $0.27 per share. Previously, we expected a profit in the range of $0.42 to $0.47 per share.” He continued, “The suggested guidance range for the year is very dependent upon the success of the important Christmas selling season, particularly if the Company will generate the expected comparable stores sales levels of 1% to 2%.”

Mr. McGrady concluded, “We are disappointed with our sales results and are concerned about the overall economic environment. However, as we enter the important fourth quarter, the overall inventory levels at all segments are positioned well to get the customer excited about shopping our stores.”