Bad News, Good News for 99 Cents Only Stores
The bad news for 99 Cents Only Stores is that it won't be able to file its annual report on SEC Form 10-K for its fiscal year that ended March 30 by the filing deadline of June 28, the company announced late Friday just before the beginning of the July 4 holiday week.
The reason the company gave in its statement for the delayed filing is that it has "identified potential overstatements in total inventory." The discrepancies were discovered as 99 Cents Only Stores prepared to upgrade its inventory recording system.
The good news for the company is that Easter, the holiday that powers its busiest selling week, occurred twice during its fiscal year. In calendar year 2012, Easter came on April 8; in 2013, it came on March 31. Hence, two big holidays in fiscal 2013. Same-store sales, the company estimated, were boosted by approximately 50 basis points because of that phenomenon.
There was no mention about having Christmas come twice a year.
The article Bad News, Good News for 99 Cents Only Stores originally appeared on Fool.com.Fool contributor Dan Radovsky and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.