Good Guys struggles at the High End10 Dec, 2002 By: Hive News
Struggling high-end electronics retailer Good Guys today announced sales results for the third fiscal quarter ended Nov. 30 and executives said the company is on track for a return to profitability in the current fiscal year.
Net sales for the quarter were $172 million compared to $198 million in the same period last year, reflecting the closure of seven stores and a 10 percent decline in comparable store sales.
For the nine months ended Nov. 30, net sales were $520.5 million compared to $560.5 million in the same period last year; comparable store sales declined 4 percent.
Strong Thanksgiving weekend sales that largely will show up in December helped the chain to improved sales for the quarter, a spokesperson said.
"Good Guys' disappointing sales performance during the first part of the quarter prompted a number of significant changes that have already started to deliver results," said Kenneth R. Weller, Good Guys chairman and CEO. "The restructuring of our retail team in October and sharpened focus on quality of sales metrics have improved the in-store experience, increased both average transaction size and gross profit per transaction and strengthened comparable store sales."
Sales of digital products, which include flat panel and high definition televisions, digital cameras and home theater systems, continued to show strong growth. Sales of flat panel televisions, which include plasma and liquid crystal displays, increased more than 400 percent from a year ago. Sales of more mature technologies, such as audio components and VCRs, continued to decline.
The company's cost containment efforts are expected to help it improve its financial performance for the third consecutive quarter and to meet analyst expectations, Weller said.
"The holiday selling season is off to a favorable start," he said. "Good Guys' strong cash availability and in-stock position on the newest electronics and our product specialists' sharpened focus on delivering an exceptional shopping experience should help us drive sales and profits during this critical period and position us to achieve our financial objectives for the fiscal year."
Good Guys will announce third-quarter financial results later this month and will hold a conference call with institutional investors and analysts at that time.