Higher Ad Costs Lower Tweeter 1Q Profits25 Jan, 2005 By: Erik Gruenwedel
Implementation of a new $5 million advertising campaign and losses from discontinued operations help mute Tweeter Home Entertainment's first quarter (ended Dec. 31) net income to $4.9 million, or 20 cents per share, compared to $5.1 million, or 21 cents per share, for the same period last year.
The Canton, Mass.-based consumer electronics retailer with 176 stores posted revenue of $262 million — up 5 percent from $251 million last year — based largely on a 2 percent increase in same-store sales from continuing operations.
“We did not achieve our internal plans for profitability for the quarter and fell about $2 million short of our [earnings before taxes] goal,” said Jeffrey Stone, president and CEO of Tweeter. “As sales came in under our internal forecast, the profit result was not surprising.”