99 Cents Only Stores' revenue at stores open at least a year climbed 6.7% in fiscal Q2 as number, size of transactions improved; total revenue grew 8.8% to US$362M
October 14, 2011
– 99 Cents Only Stores Inc., which agreed to a $1.6 billion buyout three days ago, says revenue at stores open at least a year climbed 6.7 percent for its fiscal second quarter as shoppers spent more per transaction and the number of transactions improved.
This figure is a key indicator of a retailer's health because it excludes results from stores that recently opened or closed.
Dollar store operators like 99 Cents Only have thrived in the weak economy. Shoppers have turned to the discounters for deals on necessities like food and cleaning supplies, and for bargains on toys and other household goods.
On Tuesday 99 Cents Only agreed to be acquired billion by private equity firm Ares Management LLC and the Canada Pension Plan Investment Board. The deal is expected to close in the first quarter of next year.
Average transaction size increased to $9.62 from $9.44 in the second quarter, while the number of transactions at stores open at least a year rose 4.7 percent.
The discount chain said Thursday that total revenue rose 8.8 percent to $363 million for the quarter ended Oct. 1.
For the first half of fiscal 2012, revenue at stores open at least a year climbed 6.3 percent with total revenue up 7.6 percent to $731.4 million.
99 Cents Only, which is based in Commerce, Calif., will report its second-quarter financial results on Nov. 9 after the market closes. It currently runs 289 stores, including 214 stores in California, 35 in Texas, 27 in Arizona and 13 in Nevada.
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