99-Cent Only Stores said Thursday that it will exit the Texas market to focus on its core markets of California, Arizona, and Nevada, which contribute around 90 percent of the discount retailer’s revenue.

The City of Commerce-based retailer said its Texas stores on average were only generating slightly more than half of the sales of its non-Texas stores, and further cost-cutting likely would not generate sufficient profit gains to justify the effort. It has 48 stores in Texas and 230 stores elsewhere.

The company said the Texas business had a combined operating loss of about $15 million for the four quarters ended June 28.

The company last week raised its top price for the first time in 26 years to 99.99 cents in response to what it called dramatically rising costs and inflation.

99 Cents shares were up 27 cents, or 3 percent, to $10.01 in morning trading on the New York Stock Exchange.