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 IMF expressed its concerns before the start of today's trading that "excessive risk taking may be building up" with valuations for just about every major asset class looking stretched.
As one can see from the standing of the major indices, that warning went in one of the market's ears and out the other. Actually, we're not even sure it went in one ear. The market started with a bullish bias and has maintained that bias throughout today's session.
The ... More
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