Trouble for 99 Cents Only

The City of Commerce retailer delayed filing quarterly results because of an internal investigation into its stock option practices (first quarter results have also been delayed). Apparently, there were errors amounting to $2.2 million in unrecorded compensation over the last six years. "Management believes that the stock option errors were due to misunderstandings of how to establish the measurement date for accounting purposes and did not involve any intentional wrongdoing," the company said. 99 Cents Only projected that second-quarter net income would be down due to labor costs and inventory control problems. Stock fell 2.75 percent, to $11.66. Remember a few years back when this was Wall Street's darling?