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| 8-K - 99 CENTS ONLY STORES 8K 1-7-2010 - 99 CENTS ONLY STORES LLC | form8k.htm |
“Exhibit
99.1”
99¢
ONLY STORES® REPORTS TOTAL SALES OF $359.1 MILLION AND SAME-STORE SALES INCREASE
OF 3.1% FOR THE THIRD QUARTER OF FISCAL 2010 ENDED DECEMBER 26,
2009
COMMERCE, California – January 7,
2010 ―
99¢ Only Stores® (NYSE:NDN) (the "Company") today reports total
sales of $359.1 million in the third quarter of fiscal 2010 ended December 26,
2009. This represents an increase of 2.3% over total sales of $351.1 million for
the same quarter last year. The Company’s total retail sales for the
third quarter of fiscal 2010 were $348.9 million, compared to $341.0 million for
the same quarter last year. The Company’s non-Texas operations, which
represented 91.6% of total retail sales for the quarter, had retail sales in the
third quarter of fiscal 2010 of $319.6 million compared to $307.3 million for
the same quarter last year, an increase of 4.0%. The Company’s Texas
operations had retail sales for the third quarter of fiscal 2010 of $29.3
million, compared to $33.7 million for the same quarter last year. This 13.2%
decrease in Texas sales was due to the fact that the Company closed
approximately one third of its Texas stores beginning in the fourth quarter of
last year.
The
Company's overall same-store sales for the third quarter ended December 26,
2009, increased 3.1%, with the number of same-store sales transactions
increasing 4.5% and the average transaction size decreasing to $9.70 from
$9.83. The Company’s non-Texas operations’ same-store sales increased
1.8% for this quarter, with the number of same-store sales transactions
increasing 3.4% and the average transaction size decreasing to $9.75 from $9.90.
Same-store sales for the Company’s Texas operations increased 19.6% in this
quarter, with the number of same-store sales transactions increasing 17.1% and
the average transaction size increasing to $9.20 from $9.01.
Eric
Schiffer, CEO of 99¢ Only Stores®, stated, “In the third quarter, we achieved
3.1% same-store sales growth which was in line with our
expectations. We continue to maintain strong transaction growth and
positive overall same-store sales performance as we shift our merchandising to
emphasize a broader product mix and improve our gross margin
performance. Additionally, we are pleased with our same-store sales
for our Texas stores which increased by a robust 19.6%. We look
forward to discussing our third quarter operating results in our earnings
release and the related conference call on February 3, 2010.”
During
the third quarter of fiscal 2010, the Company opened two stores, both in
California. Gross and saleable retail square footage at the end of the third
quarter were 5.82 million and 4.57 million, respectively, based on 273
stores. This reflects decreases over last year of 3.8% and 3.9%,
respectively, based on 281 stores, due to the closure of approximately one third
of Texas stores. Gross and saleable retail square footage for the
Company’s non-Texas stores at the end of the third quarter were 5.05 million and
3.98 million, respectively, an increase over last year of 2.5% for each of gross
and saleable square footage. As of December 26, 2009, the Company’s
non-Texas retail operations consisted of 241 stores, up 3.0% compared to 234
stores as of December 27, 2008. Gross and saleable retail square
footage for the Company’s 32 stores in Texas were 0.76 million and 0.60 million,
respectively, decreases over last year of 31.9% and 32.0%, respectively, based
on 47 stores as of December 27, 2008. The Company plans to open three
stores during the fourth quarter of fiscal 2010, all in
California.
For the
first three quarters of fiscal 2010, total sales were $1,015.9 million, up 4.3%,
compared to $973.8 million for the first three quarters of the prior fiscal
year. The Company’s overall retail sales for the first three quarters
of fiscal 2010 were $985.6 million, compared to $943.1 million for the first
three quarters of the prior fiscal year. The Company’s non-Texas operations had
retail sales for the first three quarters of fiscal 2010 of $901.8 million,
compared to $849.2 million for the first three quarters of the prior fiscal
year. The Company’s Texas operations had retail sales for the first
three quarters of fiscal 2010 of $83.7 million, compared to $93.9 million for
the first three quarters of the prior fiscal year.
Same-store
sales for the first three quarters of fiscal 2010 increased 4.1% compared to the
same period in the prior year. For the Company’s non-Texas
operations, same-store sales increased 2.8% in first three quarters of fiscal
2010. Same-store sales for the Company’s Texas operations increased
20.9% in the first three quarters of fiscal 2010.
About
99¢ Only Stores®
Founded
over 25 years ago, 99¢ Only Stores® currently operates 273 extreme value retail
stores consisting of 204 stores in California, 32 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,
and trends affecting the financial condition or results of operations
of the Company. 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. Contact
Rob Kautz, EVP & CFO, 323-881-1293.