99¢ Only Stores® (NYSE:NDN) (the "Company")
today
reports total sales of $324.7 million in the second quarter of fiscal
2010 ended September 26, 2009. This represents an increase of 2.2% over
total sales of $317.8 million for the same quarter last year. The
Company’s overall retail sales in the second quarter of fiscal 2010 were
$314.8 million compared to $307.4 million in the same quarter last year.
For the Company’s non-Texas operations, retail sales in the second
quarter of fiscal 2010 were $287.8 million compared to $276.4 million in
the same quarter last year. For the Company’s Texas operations, retail
sales in the second quarter of fiscal 2010 were $27.0 million compared
to $31.0 million in the same quarter last year. This 12.9% decrease in
Texas total sales was due to the closing of approximately one third of
the Company’s Texas stores.
The Company's overall same-store sales in the second quarter ended
September 26, 2009, increased 2.3%, with the number of same-store sales
transactions increasing 3.5% and the average transaction size decreasing
1.2% to $9.45. For the Company’s non-Texas operations, same-store sales
increased 0.9% in this quarter, with the number of same-store sales
transactions increasing 2.4% and the average transaction size decreasing
1.5% to $9.49. Same-store sales for the Company’s Texas operations
increased 19.8% in this quarter, with the number of same-store sales
transactions increasing 15.6% and the average transaction size
increasing 4.2% to $9.05.
For the first half of fiscal 2010 ended September 26, 2009, total sales
were $656.8 million, up 5.5%, versus $622.7 million in the first half of
the prior fiscal year. The Company’s overall retail sales in the first
half of fiscal 2010 were $636.7 million compared to $602.1 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 2010 were $582.2
million compared to $541.9 million in the first half of the prior fiscal
year. For the Company’s Texas operations, retail sales in the first half
of fiscal 2010 were $54.5 million compared to $60.2 million in the first
half of the prior fiscal year.
Same-store sales for the first half of fiscal 2010 ended September 26,
2009, increased 4.7% compared to the same period in the prior year. For
the Company’s non-Texas operations, same-store sales increased 3.4% in
first half of fiscal 2010. Same-store sales for the Company’s Texas
operations increased 21.7% in the first half of fiscal 2010.
Eric Schiffer, CEO of 99¢ Only Stores®, stated, "We continue to maintain
strong transaction growth and positive overall same-store sales
performance. In the second quarter, we achieved low single digit
same-store sales growth which was in line with our expectations, in
spite of lower seasonal availability of produce and aggressive
competitor price promotions in the food sector. We are pleased with our
same-store sales for our Texas stores which increased by a robust 19.8%.
"We believe that many middle to upper income consumers are coming into
our stores for the first time for their household needs due to the
recession. We expect that our broad selection of quality name brands,
including over 50% food and beverage items, will help retain many of
these new customers as long-term shoppers and build their transaction
average over time, helping to strengthen and maintain our same-store
sales in the longer term. A growing number of customers are attracted to
our extreme value proposition and are turning to our stores for more of
their everyday household needs.
"We look forward to discussing our second quarter of fiscal 2010
operating results in our second quarter earnings release and the related
earnings conference call on November 4, 2009.”
During the second quarter of fiscal 2010, the Company opened one store
in California and closed one Texas store. Gross and saleable retail
square footage at the end of the second quarter of fiscal 2010 were 5.78
million and 4.55 million, respectively, for 271 stores, a decrease over
last year of 4.1% and 4.0%, respectively, for 279 stores, due to the
closure of 17 Texas stores. Gross and saleable retail square footage for
the Company’s non-Texas stores at the end of the second quarter of
fiscal 2010 were 5.02 million and 3.95 million, respectively, an
increase over last year of 3.0% and 2.9%, respectively. As of September
26, 2009, the Company’s non-Texas retail operations consisted of 239
stores, up 3.5% compared to 231 stores as of September 27, 2008. Gross
and saleable retail square footage for the Company’s 32 stores in Texas
were 0.76 million and 0.60 million, respectively, a decrease over last
year of 33.9% and 33.8%, respectively, based on 48 stores as of
September 27, 2008. The Company plans to open approximately four
additional stores during the balance of fiscal 2010, all in California.
About 99¢ Only Stores®
Founded over 25 years ago, 99¢ Only Stores® currently operates 271
extreme value retail stores consisting of 202 stores in California, 32
in Texas, 25 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, 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.
