99¢ Only Stores® (NYSE:NDN) (the "Company")
today
reports total sales of $332.1 million for the first quarter of fiscal
2010 ended June 27, 2009. This represents an increase of 8.9% over total
sales of $304.9 million for the same quarter last year. The Company’s
overall retail sales in the first quarter of fiscal 2010 were $321.8
million compared to $294.7 million in the same quarter last year. For
the Company’s non-Texas operations, retail sales in the first quarter of
fiscal 2010 were $294.4 million compared to $265.5 million in the same
quarter last year.
The Company's overall same-store sales for the first quarter ended June
27, 2009, increased 7.2%, with the number of same-store sales
transactions increasing 6.0% and the average transaction up 1.2% to
$9.56. For the Company’s non-Texas operations, same-store sales were up
5.9% for this quarter, with the number of same-store sales transactions
increasing 5.3% and the average transaction up 0.6% to $9.61. Same-store
sales for the Company’s Texas operations were up 23.6% for this quarter,
with the number of same-store sales transactions increasing 14.9% and
the average transaction up 8.7% to $9.03.
Eric Schiffer, CEO of 99¢ Only Stores®, stated, "We are pleased with our
solid first quarter same-store sales performance, which underscores the
strength of our business model and ability to attract new customers and
achieve strong sales results in a challenging economic environment. In
Q1, our overall same-store sales increased by 7.2% and our non-Texas
same-store sales increased by 5.9%. Additionally, the same-store sales
for our Texas stores increased by a robust 23.6%. Q1 same-store sales
were helped by the shift in the timing of the Easter holiday this year,
and Texas comps were positively impacted by reverse cannibalization from
Texas stores closed in March and April.
"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 these new
customers as long-term shoppers. A growing number of customers are
attracted to our deep value proposition and are turning to our stores
for more of their everyday household needs including produce and other
perishables.
"We remain focused on continuing to improve operating efficiencies and
profitability during fiscal 2010,” added Mr. Schiffer. "We believe that
we remain on track to achieve our long-term Profit Improvement Plan.
"We look forward to discussing our first quarter of fiscal 2010
operating results and an update in regards to Texas during our first
quarter earnings release and the related earnings conference call on
August 5, 2009.”
During the first quarter of fiscal 2010, the Company opened two stores
in California, re-opened one Texas store which closed last year due to a
hurricane and closed 11 Texas stores. Gross and saleable retail square
footage at the end of the first quarter of fiscal 2010 were 5.78 million
and 4.55 million, respectively, a decrease over last year of 1.4% and
1.5%, respectively, in gross square footage and retail square footage
due to the closure of 15 Texas stores over the past several months. As
of June 27, 2009, the Company had 271 stores compared to 273 stores as
of June 28, 2008. Gross and saleable retail square footage for the
Company’s non-Texas stores at the end of the first quarter of fiscal
2010 were 5.00 million and 3.93 million, respectively, an increase over
last year of 5.4% and 5.3% in gross square footage and retail square
footage. As of June 27, 2009, the Company’s non-Texas retail operations
consisted of 238 stores, up 5.8% compared to 225 stores as of June 28,
2008. Gross and retail square footage for the Company’s 33 stores in
Texas were 0.78 million and 0.62 million, respectively, a decrease over
last year of 30.3% in gross square footage and 30.4% retail square
footage.
For fiscal 2010, the Company plans to open a total of 10 to 12 stores
with the majority in the second half and all but two in California.
About 99¢ Only Stores®
Founded over 25 years ago, 99¢ Only Stores® currently operates 271
extreme value retail stores consisting of 201 stores in California, 33
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, trends affecting the financial condition or results of
operations of the Company and the results of the Company’s operational
and other improvements, including pursuant to the Company’s profit
improvement plan. 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.
