99 Cents Only Stores
, a one-price retail chain, said Friday it expects lower earnings in its first quarter ended June 30.
The City of Commerce, Calif.-based company expects to earn penny a share in the first quarter, compared with 7 cents a share a year ago. Analysts too are expecting earnings of penny a share.
First-quarter revenue is expected to be $263.6 million as against analysts' expectation of $253.9 million.
The company expects to file its 2006 Form 10-K and Form 10-Q for the first quarter within the next two weeks.
"For the quarter ended June 30, 2006, we had a healthy increase in our sales, and our gross margin stabilized. We are almost finished with the major effort to become current in our SEC filings and are excited about focusing our team's efforts fully on the coming holiday season. Our operating margins continued under pressure in the June quarter due to the interim costs of building management infrastructure and efforts to meet Sarbanes-Oxley requirements as well as the resulting diversion of management from day-to-day operations. We are moving forward on short and long term projects to increase sales, reduce costs, and improve inventory management and ultimately earnings per share," the company said.
Shares surged a penny to $10.36.
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