Bob Pisani is off today, this was written by CNBC producer Robert Hum
One recurring theme this week—while sales of luxury goods continue to struggle, consumers continue to shop for less expensive goods.
After the close, discount retailer 99 Cents Only Storesreported that its same-store sales grew an impressive 7 percent in the first quarter. Shares, which closed right near a 2-year high, are rising about 2 percent in after hours trading.
This announcement comes after fellow discounter Family Dollar Storeshandily beat earnings estimates yesterday amid a 6.2 percent gain in comp. store sales during its most recent quarter. Additionally, off-priced retailers like TJXand Ross Storesreported similar trends in June, with same-store sales rising last month too.
Interestingly enough, 99 Cents Only Stores isn’t just generating more traffic from their existing customer base. They are, in fact, attracting customers from a broad range of economic backgrounds. CEO Eric Schiffer points out, “We believe that many middle to upper income consumers are coming into our stores for the first time for their household needs due to the recession.”