Shares in 99 Cents Only Stores dropped more than 5 percent Friday after the discount retailer reported earnings that missed estimates, even though the earnings were up big.

99 Cents Only reported net income of $3 million (4 cents per share), a 60 percent jump from $1.9 million ( 3 cents) from the same period a year earlier, missing analysts’ predictions of 5 cents per share, according to Thomson Financial.

Sales for the City of Commerce-based retailer rose 11 percent to $293 million, helped by a 5.2 percent gain in same-store sales.

“We intend to keep our focus on cost reductions, effectively getting the right product on the shelf at the right time by improving merchandise flow and enhancing our labor productivity in all areas of operations,” the company’s chief executive, Eric Schiffer, said in a statement.

Shares in 99 Cents Only closed down 65 cents, or 5.2 percent, and lost another 31 cents, or 2.6 percent, to $11.49 in after-hours trading Friday on the New York Stock Exchange.