CITY OF COMMERCE, Calif. — 99 Cents Only Stores here said yesterday it plans to announce in early August whether it will exit its 34-unit Texas operation or implement a plan to increase profitability there.
In the seven weeks since Easter, those stores have shown same-store sales increases of 20% because of improved merchandising and strong word-of-mouth, Eric Schiffer, chief executive officer, said in a conference call.
For the fourth quarter, which ended March 28, net income at the company was $7 million, compared with a net loss of $4.4 million a year ago, while sales rose 13.3% to $329.2 million and same-sore sales jumped 6.2%. For the fiscal year, net income rose 193.6% to $8.4 million, while sales climbed 8.6% to $1.3 billion and same-store sales rose 3.7%.
Net income for the year included a Texas leasehold asset impairment charge of $10.1 million; severance payments of $1.4 million; and lease termination costs of $1.3 million related to the company's announced plans to exit its Texas operations — a decision it put on hold in February. The company has since closed 14 underperforming locations of the 48 stores it was operating there.
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