99 Cents Only Stores reports $5.2M net loss

CITY OF COMMERCE, Calif. 99 Cents Only Stores today reported a net loss of $5.2 million, or 7 cents per share, for the quarter ended Sept. 30, compared to a net loss of $5,000 for the quarter.

According to the company, despite an 11.4% increase in total sales, the net loss widened primarily due to proportionally higher cost of sales and SG&A expenses, including a store impairment charge of $0.5 million.

As previously reported, total sales for the quarter ended Sept. 30 were $290.9 million. The company's same-store-sales for the second quarter increased 6.1% versus the same quarter last year.

Eric Schiffer, ceo, said, “Despite our disappointing results for the quarter, we remain excited about our format and growth potential. Our increasing customer traffic clearly indicates the popularity of our concept with our customers, and we expect our current quarter to be our ninth positive comp quarter in a row. Maintaining sales growth while improving gross margin and reducing SG&A as a percentage of sales are our top priorities for the second half of fiscal 2008 and into the future.”