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Good Guy's Q2 Comp-Store Sales Declined 8%; Digital Products Show Strength

6 Sep, 2001 By: Hive News

Good Guys, the nation's largest specialty retailer of higher-end consumerentertainment electronics, on Thursday reported that for the quarter and six months ended August 31, 2001, net sales for the quarter declined 7% to $190.9 million from $204.9 million in the same period last year, reflecting the current economic downturn and the industry-wide softening in demand for consumer electronics, according to the company.

Comparable store sales for the quarter declined 8% after increasing 13% in the same period last year. Netsales for the six months were $362.5 million compared to $389.0 million for the same period last year and comparable store sales declined 8%.

Sales of digital products, which include high-definition televisions, DVD players, digital cameras and camcorders and digital satellite systems, continued to be strong and accounted for 58% of product sales.

"Newer, more fully featured and higher-end products like high-definition and plasma televisions continue to capture walletshare among Good Guys' discerning customers," said Kenneth R. Weller, president, Good Guys.

"These products play to the strengths of our product specialists, whose ability to explain, demonstrate and recommend the latest digital and high-tech gear will continue to differentiate Good Guys from our competitors and will enable us to increase our value proposition to our customers and vendors as more advanced and sophisticated products areintroduced in the months and years ahead," Weller said.

Good Guys also announced strategic relationships with Accenture, formerly Andersen Consulting, to improve the effectiveness of its merchandising and advertising program and increase overall sales and gross profit margins, and with the Gallup Organization to strengthen its sales organization, recruiting efforts and associate development and retention program.

In July, Good Guys announced an agreement with GE Warranty Management, a subsidiary of General Electric, that expands Good Guys' in-home service capabilities and provides customers with faster response times andhigher quality service through a national network of service providers. The relationship is also expected to enable Good Guys' serviceorganization, via General Electric's Six Sigma practices, to reduce costs and operate more efficiently.

Good Guys expects to announce financial results for the quarter that are in line with expectations on Sept. 20.

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