99 Cents drops on lackluster sales
The discount chain cites increased competition in Texas.
By Jeanine Poggi, TheStreet
During the quarter, the company said sales edged up 3% to $333.6 million, less than Wall Street's estimate of $344.2 million. Total same-store sales increased 0.6%. The shares were down 11% to $15.75 at 12:21 p.m. ET.
99 Cents Only said sales were hurt by increased competition in Texas, a state that accounts for about 8% of the company's total retail sales.
"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," chief executive Eric Schiffer said.
Schiffer said 99 Cents will beat its previous second-quarter profit forecast before taxes. The company is scheduled to report its full earnings report on Nov. 3.
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[BRIEFING.COM] The stock market ended the Thursday session on a mixed note ahead of Friday's nonfarm payrolls report for February (Briefing.com consensus 163K). The Dow Jones Industrial Average (+0.4%) and S&P 500 (+0.2%) posted modest gains while the Nasdaq Composite (-0.1%) lagged throughout the session.
Equities began the trading day on an upbeat note following comments from the Bank of England and the European Central Bank, both of which reaffirmed their commitment to ... More
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