Wednesday,consumer goods retailer 99 Cents Only Stores (NDN), reported a swing to profit for the third quarter from a loss last year, on lower operating expenses as well as higher sales for the period. Comparable store sales for the quarter increased to 2.3% compared with a year-ago.
The City of Commerce, California based company's second quarter net income was $9.6 million or $0.14 per share, compared with a loss of $9.4 million or $0.13 per share in the prior year period.
On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of $0.08 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the second quarter rose 2.2% to $324.7 million from $317.8 million in the year-ago period. Ten analysts expected revenues of $323.82 million for the quarter.
Same-store sales for the second quarter increased 2.3% from the prior-year quarter.
Retail operations yielded higher revenues of $314.82 million, up from $307.4 million a year ago. Wholesale operations decline to $9.87 million from $10.37 million last year.
Non-Texas retail net sales increased 4.1% year-on-year to $287.8 million and same-store sales increased 0.9%, while Texas operations contributed 12.9% lesser at $27 million than the year-ago period, hurt by the closure of 17 stores. Same-store sales in Texas operations, however, increased 19.8% from last year.
Gross margins improved 130 basis points of sales to 39.9% from 38.6% last year, as cost of sales remained flat year-over-year at $195.09 million.
Results for the recently ended quarter were favorably impacted by a decline in total SG&A expenses at $114.61 million, compared to $134.46 million last year, led by lower operating expenses at $107.73 million compared with $125.77 million in the comparable period one-year ago.
The company posted an operating income of $14.98 million compared with a loss of $11.77 million in the year-ago period. Operating margins improved to 4.6% from 3.7%, or 830 basis points from the prior year.
For the first half of fiscal 2010, the company reported a net income of $19.11 million or $0.28 per share compared with a loss of $10.93 million or $0.16 per share in the same period last year. Total net sales improved 5.5% to $656.8 million from $622.7 million in the previous year.
Looking forward to the third quarter of fiscal 2010, the company expects positive same-store sales in the low single digits. The company expects to exceed its previously announced fiscal 2012 target for earnings before taxes of 4.7% by 30-60 basis points for the current fiscal year.
NDN finished Wednesday's regular trading sessions up 0.75% or 9 cents, at $12.04 on a volume of 1.06 million shares.
In after-hours trading, shares lost 19 cents or 1.58%, trading at $11.85.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.