Q3 Comps Gain But 99 Cents Only Still Posts Loss

Although it enjoyed a significant boost in comparable store sales, 99 Cents Only Stores posted a net loss of $27.1 million in the third quarter, improving from a $37 million net loss in the previous third quarter.

Comparable store sales increased 11.3% in the quarter year over year, as customer traffic gained 5.1% and average ticket advanced 5.8%. Comps benefited from increased sales across major product categories, including seasonal, general merchandise, consumables, fresh and grocery.

Sales were $553.6 million, with 99 Cents Only store sales at $543.9 million and Bargain Wholesale revenues at $9.8 million versus $500.1 million in the quarter in the year previous, with 99 Cents Only store sales at $489.9 million and Bargain Wholesale revenues at $10.2 million.

“Our results in the third quarter highlight our ongoing success in executing our turnaround plan and the strong operating momentum that continues to build at 99 Cents Only Stores,” said Geoffrey Covert, 99 Cents Only president and CEO. “I am proud of our top line performance, which drove improved profitability. Similar to recent periods, the sales growth in the quarter was driven by our ongoing emphasis on providing higher-quality merchandise, including our above $1 items and fresh offerings, as well as a better in-stock position and overall improvements in the customer shopping experience.”