99¢ Only Stores® Reports Second Quarter Sales and Updates Earnings Guidance
October 07 2010 - 4:54PM
Business Wire
99¢ Only Stores® (NYSE:NDN) (the "Company") today reports total
sales of $333.6 million for the second quarter of fiscal 2011 ended
September 25, 2010. This represents an increase of 2.7% over total
sales of $324.7 million for the same quarter last year. The
Company’s total retail sales for the second quarter of fiscal 2011
were $323.2 million, compared to $314.8 million for the same
quarter last year. The Company’s non-Texas operations, which
represented 91.7% of total retail sales for the quarter, had retail
sales of $296.3 million for the second quarter of fiscal 2011
compared to $287.8 million for the same quarter last year, an
increase of 3.0%. The Company’s Texas operations had retail sales
for the second quarter of fiscal 2011 of $26.9 million, compared to
$27.0 million for the same quarter last year, a decrease of
0.4%.
Eric Schiffer, CEO, commented, “Our second quarter same-store
sales growth was 0.6%, and although it was slightly below our
target range of low single digit percentage growth, we believe that
we will exceed our forecasted increase in Income Before Taxes for
the second quarter. Sales were weaker in Texas than we expected,
primarily due to unusually aggressive price promotions by the large
food retailers in response to a major discount grocery chain’s
entry into the Texas market. Additionally, the same-store sales
comparison for Texas is compared against a large same-store sales
increase of 19.8% in Texas in the second quarter of last year. We
are pleased that we have completed the roll out of the first phase
of our new store ordering system while maintaining positive
transaction count and same-store sales growth.
“We believe that we will have a strong holiday season, and, for
fiscal 2011, we continue to expect positive same-stores sales in
the low single digits for the year. We plan to open approximately
seven additional stores during the second half of fiscal 2011, with
the majority of new stores expected to be opened in
California.”
The Company's overall same-store sales for the second quarter
ended September 25, 2010, increased 0.6%, with the number of
same-store sales transactions increasing 1.0% and the average
transaction size decreasing to $9.43 from $9.47. The Company’s
non-Texas operations’ same-store sales increased 0.9% for this
quarter, with the number of same-store-sales transactions
increasing 1.2% and the average transaction size decreasing to
$9.48 from $9.51. Same-store sales for the Company’s Texas
operations decreased 2.4% in this quarter, with the number of
same-store-sales transactions decreasing 0.9% and the average
transaction size decreasing to $8.92 from $9.06.
For the first half of fiscal 2011, total sales were $680.0
million, up 3.5%, versus $656.8 million in the first half of the
prior fiscal year. The Company’s overall retail sales in the first
half of fiscal 2011 were $659.8 million, up 3.6% compared to $636.7
million in the first half of the prior fiscal year. For the
Company’s non-Texas operations, retail sales in the first half of
fiscal 2011 were $605.3 million, up 4.0% versus $582.2 million in
the first half of the prior fiscal year. For the Company’s Texas
operations, retail sales in the first half of fiscal 2011 and 2010
were flat at $54.5 million.
Same-store sales for the first half of fiscal 2011 increased
1.6% compared to the same period in the prior fiscal year. For the
Company’s non-Texas operations, same-store sales increased 1.6% in
first half of fiscal 2011. Same-store sales for the Company’s Texas
operations increased 2.3% in the first half of fiscal 2011.
During the second quarter of fiscal 2011, the Company opened two
stores in Southern California and one in Arizona, re-opened one
Company-owned Texas store and closed one California store upon the
expiration of a lease. The gross and saleable retail square footage
at the end of the second quarter were 5.93 million and 4.66
million, respectively, based on 279 stores. This represents an
increase of 2.6% over last year for each of gross and saleable
square footage. Gross and saleable retail square footage for the
Company’s non-Texas stores at the end of the second quarter were
5.13 million and 4.03 million, respectively, an increase over last
year of 2.2% for each of gross and saleable square footage. As of
September 25, 2010, the Company’s non-Texas retail operations
consisted of 245 stores compared to 239 stores as of September 26,
2009. Gross and saleable retail square footage for the Company’s 34
stores in Texas were 0.80 million and 0.63 million, respectively,
an increase over last year of 5.0% and 5.1%, respectively, based on
32 stores as of September 26, 2009.
Mr. Schiffer concluded, “We believe that we will exceed our
previously announced guidance of achieving a 20% increase in our
second quarter Income Before Taxes versus the second quarter of
fiscal 2010, and for fiscal 2011, we believe that we will achieve
at least 7.5% in Income Before Taxes as a percentage of sales. We
look forward to discussing our second quarter operating results in
more detail during our earnings conference call on November
3rd.”
About 99¢ Only Stores®
Founded over 25 years ago, 99¢ Only Stores® currently operates
279 extreme value retail stores consisting of 207 stores in
California, 34 in Texas, 26 in Arizona, and 12 in Nevada. 99¢ Only
Stores® emphasizes quality name-brand consumables, priced at an
excellent value, in convenient, attractively merchandised stores.
Over half of the Company’s sales come from food and beverages,
including produce, dairy, deli and frozen foods, along with organic
and gourmet foods. The Company’s New York Stock Exchange symbol is
NDN.
Safe Harbor Statement
We have included statements in this release that constitute
"forward-looking statements" within the meaning of Section 21E of
the Securities Exchange Act and Section 27A of the Securities Act.
The words "expect," "estimate," "anticipate," "predict," "believe”
and similar expressions and variations thereof are intended to
identify forward-looking statements. Such statements appear in this
release and include statements regarding the intent, belief or
current expectations of the Company, its directors or officers with
respect to, among other things, the business and growth strategies
of the Company, results of operations and related financial
measures for the second quarter of fiscal 2011 and for all of
fiscal 2011, new store openings, and trends affecting the financial
condition or results of operations of the Company. The shareholders
of the Company and other readers are cautioned not to put undue
reliance on such forward-looking statements. Such forward-looking
statements are not guarantees of future performance and involve
risks and uncertainties, and actual results may differ materially
from those projected in this release for the reasons, among others,
discussed in the reports and other documents the Company files from
time to time with the Securities and Exchange Commission, including
the risk factors contained in the Section – “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” of the Company’s Annual Reports on Form 10-K and
Quarterly Reports on Form 10-Q. The Company undertakes no
obligation to publicly revise these forward-looking statements to
reflect events or circumstances that arise after the date
hereof.
Note to Editors: 99¢ Only Stores® news releases and information
available on the Company’s website at http://www.99only.com.
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