Exhibit 99.1
99 CENTS ONLY STORES(R) REPORTS FIRST QUARTER 2004 RETAIL SALES OF $218.8
MILLION, UP 18.5% OVER FIRST QUARTER 2003.
CITY OF COMMERCE, CA - April 6, 2004 - 99 Cents Only Stores(R) (NYSE:NDN)
reported total sales of $230.1 million for the first quarter ended March 31,
2004, versus guidance of $230 to $235 million. This represents an increase of
$33.6 million or 17.1% over sales of $196.4 million during the first quarter of
2003.
Retail sales for 99 Cents Only Stores were $218.8 million, up $34.1 million
or 18.5% from sales of $184.7 million in 2003. The full quarter effect of 2003
new store additions accounted for the majority of this increase.
Same-store-sales for 99 Cents Only Stores increased 0.2% during the first
quarter of 2004, versus guidance of 1 to 2%. Comparable stores sales
transactions for were up 2.1% while the average transaction amount was down 2.1%
for the first quarter.
Comparable store sales for the first two months of the quarter were 3.4%.
However, comparable store sales in March were down 5.4%. Eric Schiffer,
President of the Company said, "While we are very disappointed that March, in
particular the last three weeks, proved to be such a challenging month for our
comp stores, we are encouraged that the traffic and the number of transactions
for the quarter improved as expected.
The previous two years we have enjoyed strong comps in the first quarter
and have benefited from the implementation of POS, expansion of frozen and deli
and introduction of milk. We will continue to implement new merchandising
efforts, along with our information systems initiatives, which should help
increase sales going forward.
Retail sales for the quarter were negatively impacted by about $1.5 million
due to the lack of availability of eggs because of high prices. The effect of
this on the first quarter comp sales was approximately 0.7%. Currently, dozen
eggs are back in the stores and we are developing a smaller pack size to
maintain availability.
We believe March sales were also unfavorably affected by strong promotional
efforts of Southern California grocery stores to draw customers back to their
stores when the food workers strike ended in March. First quarter sales were
also hurt by lower than planned growth of import merchandise and lower than
planned sales in our Houston, Texas stores.
Our main focus in Texas is to increase sales of our new Houston stores. We
are currently developing a specifically tailored merchandising and marketing
strategy to be introduced in the second quarter, that we believe over time will
increase sales in these stores. Moreover, we believe as our presence and
reputation in Texas grows, word of mouth will be a significant force as it has
been in our other markets.
Primarily due to the lower than planned March comparable sales, a slightly
lower than planned retail gross margin due to a lower mix of imports, and higher
than planned freight costs due to increased fuel prices, earnings guidance is
being lowered to $0.18 to $0.19 from our prior guidance of $0.20 to $.21.
The Company will release earnings on Tuesday April 20, 2004 at 5:30 am
Pacific Time. An 8:00 am Pacific Time conference call will follow the earnings
release. The call-in number is 206-315-1857 and the replay number is
913-383-5767, pass code 4071."
During the first quarter of 2004, 99 Cents Only Stores(R) opened ten stores
including four in California, 2 in Houston, Texas, and 2 each in our new markets
of Dallas, Texas and Tucson, Arizona. One store was forced to close in Southern
California due to a public school eminent domain action. Thirteen stores are
planned to open in the second quarter, 14 in the third and 11 in the fourth
quarter of 2004.
Gross square footage at the end of the quarter was 4.281 million and
ending sellable square footage was 3.372 million.
Bargain Wholesale sales for the first quarter were $11.3 million compared
to $11.7 million in 2003. Bargain Wholesale sales represent 4.8% of first
quarter total sales.
99 Cents Only Stores(R), the nation's oldest existing one-price retailer,
operates 198 retail stores, in California, Texas, Arizona and Nevada and a
wholesale division called Bargain Wholesale. 99 Cents Only Stores(R) emphasizes
name-brand consumables, priced at an excellent value, in attractively
merchandised stores.
This press release contains forward-looking statements, as referenced in
the Private Securities Litigation Reform Act of 1995 (the "Act").
Forward-looking statements are inherently unreliable and actual results may
differ. Factors which could cause actual results to differ materially from these
forward-looking statements include, changes in the competitive market place,
general economic conditions, factors affecting the retail industry in general,
the timing of new store openings, the ability of the company to acquire
inventory at favorable costs and other factors discussed in the company's
filings with the Securities and Exchange Commission. The Company undertakes no
obligation to publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
Note to Editors: 99 Cents Only Stores(R) news releases and information available
on the World Wide Web at htpp://www.99only.com
CONTACT: 99 Cents Only Stores(R), City of Commerce, California, Andy Farina,
CFO, 323/881-9933
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