Good Guys Reports $4.5M Loss For Q2
By Jeff Malester -- TWICE, 9/24/2001
SAN FRANCISCO — Higher-end consumer electronics specialty retailer Good Guys widened its net loss in its fiscal second quarter, reaching $4.5 million, compared with $3.4 million in the year-ago three months. The company said the increase in net loss resulted from a 7 percent decline in sales, but was partially offset by a reduction in general and administrative costs and an increase in gross profit margin.
As reported, net sales for the second quarter decreased 7 percent, down to $190.9 million, compared with $204.9 million in the same quarter in 2000. Good Guys said the dip in sales reflects the current economic downturn as well as industrywide softening in the demand for CE. Comp-store sales slid 8 percent, as reported.
"Despite the unfavorable economic conditions, Good Guys made significant improvements during the quarter in key controllable areas of our business," said Ron Unkefer, chairman/CEO. "These include cost containment, profit margin, in-store execution, product presentation and inventory management," he said.
Good Guys raised its gross profit margin 40 basis points to 29.7 percent in the second quarter, compared with 29.3 percent in the same period last year.
"We expect to capitalize on the strong demand for the newest digital and high-tech products," said Unkefer, "further differentiating ourselves from the mass merchants and national chains."
For the six months, Good Guys reported a net loss of $14.6 million, compared with $12.1 million in the first half of last year. Net sales for the six months were $362.5 million, down about 7 percent from the $389 million recorded in the first half of 2000.
Gross profit margin for the six months climbed 30 basis points to 29.1 percent, up 30 basis points from the 28.8 percent reported in the same period last year.
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