The 99 Cents Only Stores on Friday reported revenue of $325 million in the second quarter. That barely missed analysts' expectations of $326 million, according to a poll by Thomson Reuters.
The slight disappointment sent shares lower. By late morning, the price had dropped 6 percent, or 82 cents, to trade at $13.18 per share.
The Commerce-based discount retailer reported a 2.2 percent increase for same store sales compared to last year, but total sales declined because the company has closed about one third of its stores in Texas.
The company reported only sales and revenues, not earnings. Full financial disclosure will come on Nov. 4 when the company will release its second quarter earnings and hold a conference call with investors and analysts.
"In the second quarter, we achieved low single digit same-store sales growth which was in line with our expectations," Chief Executive Eric Schiffer, said in a statement. "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 percent of food and beverage items, will help retain many of these new customers as long-term shoppers."
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