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.
- 8 top retail stocks: Holiday sales favorites
- Cramer: How to buy retail stocks
- 6 companies hiring for the holidays
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
- Jan crude oil slipped further into negative territory today on higher-than-anticipated builds in gasoline and distillate inventories.
- Although the EIA reported that crude oil inventories had a draw of 10.6 mln barrels when consensus called for a draw of 2.7-3.0 mln, gasoline stockpiles rose 6.7 mln vs expectations for a build of 1.7-2.0 mln barrels. Distillate inventories rose 4.5 mln barrels when consensus called for a smaller build of 1.5-1.6 mln.
- The ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
LATEST MARKET DISPATCHES
- No more Dispatches; here's where to find market news
The Market Dispatches column has been discontinued. Here's where to find the latest stock and business news on MSN Money, and the latest from market writer Charley Blaine.
- Dow falls 59 as late-day gloom kills a rally
- Stocks held back by fiscal-cliff worries
- Stocks suffer worst weekly loss in 5 months
- Dow off 121 as post-election swoon continues
- Dow slumps 313 after Obama's re-election
- Dow jumps 133 as Americans head to the polls
The company is planning a 10-for-1 split, which will cut its share price dramatically.