99 Cents Only Stores LLC on Friday announced the hiring of former Kroger Co. executive Geoffrey Covert as president and chief executive officer.

The discount retailer also reported financial results for its second quarter and first half of fiscal 2016.

99 Cents Only said it hired Covert after an "extensive search for a new leader."

COMMERCE, Calif. — 99 Cents Only Stores LLC on Friday announced the hiring of former Kroger Co. executive Geoffrey Covert as president and chief executive officer.

99 Cents Only Stores LLC on Friday announced the hiring of former Kroger Co. executive Geoffrey Covert as president and chief executive officer.

The discount retailer also reported financial results for its second quarter and first half of fiscal 2016.

Kroger, operator of the nation’s largest supermarket chain, announced on Thursday that Covert had retired as senior vice president of retail divisions after nearly 20 years with the company.

99 Cents Only said it hired Covert after an "extensive search for a new leader." The company sells closeout and regular general merchandise for 99 cents or less through its 389 retail outlets in California, Texas, Arizona and Nevada.

"We are confident in the core 99 Cents Only business and continue to believe it is one of the most unique extreme value brands in the industry," said David Kaplan, a member of the board and cofounder and senior partner of Ares Management L.P., an investment firm based in Los Angeles that owns a stake in 99 Cents Only Stores. "The board feels strongly that Geoff has the experience and leadership to drive the company to the levels of growth we believe it can reach."

Kaplan also thanked board chairman Andy Giancamilli for his service as interim president and CEO, roles in which he has served since May. "We look forward to [Giancamilli’s] continued service as chairman of the board," Kaplan remarked.

Giancamilli has agreed to continue to work from the company’s headquarters here during a transition period under Covert’s leadership.

Prior to joining Kroger, Covert spent 22 years at Procter & Gamble Co. in a variety of management positions. He earned a bachelor of science degree in chemical engineering from Case Western Reserve University in Cleveland.

99 Cents Only Stores swung to a loss in the three months through July, posting a net loss of $78.1 million compared to a gain of $2 million a year earlier.

The company reported net sales of $488.5 million in the quarter, up from $458.2 million a year ago, despite a 1.9% decline in same-store sales due to lower customer traffic, which was partially offset by a higher average ticket.

Second quarter same-store sales were strongest in the seasonal and general merchandise categories, the company said, and relatively weak in consumables.

The company also swung to a loss for its fiscal year first half, posting a loss of $76.9 million after a gain of $11.6 million a year earlier.

99 Cents Only Stores posted first half net sales of $994.7 compared to $936.1 million a year earlier. Same-store sales declined 1.8%.