Value City Q2 Loss Widens Despite DSW Growth

Value City Department Stores, Inc. announced net sales for the second quarter ended August 2, 2003 increased 6.2% to
$604.6 million from $569.1 million for the quarter ended August 3, 2002. Comparable store sales for the quarter increased 1.6% when compared to the same period last year.

The net loss for the quarter was $3.6 million, or $0.11 per share on a diluted basis, compared to a net loss of $0.7 million, or $0.02 per share on a diluted basis last year.

           
                      VALUE CITY DEPARTMENT STORES, INC.
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
               (Dollars in thousands, except per share amounts)
                                 (Unaudited)

                            Thirteen Weeks Ended     Twenty-six Weeks Ended
                             August 2,  August 3,    August 2,    August 3,
                                 2003       2002        2003         2002
    Net sales, excluding
     sales of licensed
      departments            $604,594     $569,062  $1,193,126   $1,154,974
    Cost of sales            (368,228)    (345,463)   (740,040)    (708,188)
    Gross profit              236,366      223,599     453,086      446,786
    Selling, general and
     administrative expenses (235,875)    (219,344)   (466,916)    (442,614)
    License fees and other
     operating income           1,291        2,431       2,792        4,593
    Operating profit (loss)     1,782        6,686     (11,038)       8,765

    Interest expense, net      (8,069)      (7,863)    (17,652)     (14,201)
    Loss before benefit for
     income taxes and
      cumulative effect of
       accounting change       (6,287)      (1,177)    (28,690)      (5,436)
    Benefit for income taxes    2,639          451      11,869        2,015
    Loss before cumulative
     effect of accounting
      change                   (3,648)        (726)    (16,821)      (3,421)
    Cumulative effect of
     accounting change, net
      of income taxes              --           --          --       (2,080)
    Net loss                  $(3,648)       $(726)   $(16,821)     $(5,501)

    Basic and diluted
     weighted average shares
      outstanding              33,720       33,651      33,716       33,641
    Basic and diluted loss
     per share:
    Loss before cumulative
     effect of accounting
      change                   $(0.11)      $(0.02)     $(0.50)     $(0.10)
    Cumulative effect of
     accounting change,
      net of income taxes          --           --           --       (0.06)
    Net loss per share         $(0.11)      $(0.02)     $(0.50)      $(0.16)

    Same store sales:
     Value City
      Department Stores           0.6%        (6.1)%      (1.8)%       (3.6)%
     DSW Shoe Warehouse           4.5         (2.1)        0.4         (0.4)
     Filene's Basement            0.3          1.2        (3.8)         3.0
    Total                         1.6%        (4.3)%      (1.5)%       (2.1)%

    Store count at end of period:
    Value City Department Stores                           116          116
    DSW Shoe Warehouse                                     131          117
    Filene's Basement                                       21           21
    Total                                                  268          254