This morning, 99 Cents Only Stores said it will report a second-quarter net loss due to short-term operating margin and execution issues. Sales for the quarter climbed 11% to $290.9 million, and same-store sales jumped 6.1%, but NDN says the sales increases were generally on low-margin products. Ahead of today's announcement, analysts were expecting the retailer to report a profit of 2 cents per share on $286 million in revenue.
NDN has lost more than 4% so far today. The equity has dropped under double-barreled resistance from its descending 10-week and 20-week moving averages since April, though their 10-day and 20-day counterparts have lately provided some counteracting support.
Wedbush Morgan's bullish stance was unshaken by today's report; the broker reiterated its strong buy endorsement earlier this morning. Meanwhile, short sellers have flocked to the equity. About 16.7% of the stock's available float was sold short as of the latest reporting period.