Wedbush Maintains Neutral Rating On 99 Cents Only Store

According to Wedbush, 99 Cents Only Stores NDN Neutral rating is maintained. Wedbush said that fiscal Q4 EPS of $0.25 (vs. $0.24 LY) was slightly below its/consensus $0.27/$0.26 forecast. “For non-Texas core operations, gross margin was down 50 bps to 40.3%, due to higher product costs (40 bps) and higher shrinkage (10 bps). Non-Texas SG&A improved 90 bps, to 30.5%, due to across-the-board reduction of expenses, including retail operating costs (30 bps), corporate G&A (20 bps), and other operating expenses (50 bps), partially offset by distribution and transportation (10 bps). Non-Texas operating margin was up 30 bps to 7.9% of sales. Previously reported, fiscal Q4 comps of 0.5% (comparable 13 week basis) vs. 3.5% (13 weeks) were slightly below our/consensus forecasts for 0.9%/0.7%.” 99 Cents Only Stores closed yesterday at $20.37.