"We expect higher gas prices will continue to pressure our customer," said Kent Kleeberger, the company's CFO. For the company's third quarter, officials are predicting slight negative same-store sales.

However, they did say that stores opening this year are performing better than the units the retailer opened in 2004. At an average of 13,800 sf, last year's new units average $1.3 million in annualized sales. Meanwhile, this year's new stores, at 12,500 sf, are coming in at $1.5 million to $1.6 million.

The company has also met executives' goals of opening more stores in the first half of the year. This year, 60% of the projected 225 new units opened in the first six months, while only 40% of the new locations opened by then in 2004. The retailer currently operates 2,856 units in 48 states.

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