99 Cents Only Loss Widens

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Shares in discount retailer 99 Cents Only Stores dropped Friday after the company reported late Thursday that it had widened its quarterly loss due to higher expenses and rising costs.


99 Cents Only reported a loss of $5.2 million (-7 cents per share) for the fiscal second quarter ended Sept. 30, a big increase from a loss of $5,000, or breakeven per share, from the same period a year earlier. Wall Street was expecting a loss of 1 cent per share, according to Thomson Financial.


Sales for the City of Commerce-based company rose 11 percent to $291 million, beating analysts’ expectations of $289 million.


The company cited, among other factors, commodity price increases, a hike in the minimum wage and higher distribution and transportation costs for cutting into profits.


Shares in 99 Cents Only shed 7.7 percent to $9.28 in early trading Friday on the New York Stock Exchange. Shares have fallen 43 percent since the beginning of the year.

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