West Chester, Pa. - Electronics Boutique enjoyed a 15 percent increase in revenue during its fiscal third quarter, hitting $324.7 million, up from $283 million in the year-ago period.
However, net income for the third quarter, ended Nov. 1, dropped to $1.5 million, down from $3.7 million, while same-store sales decreased 6.5 percent, due primarily to a difficult software sales comparison and weakness in hardware sales year on year.
For the nine months, Electronics Boutique revenue rose 19 percent, reaching $930.3 million, up from $783.2 million in the same period a year earlier. Net income for the nine months hit $6.3 million, up from $5.8 million in the same period in 2002, before the cumulative effect of a change in accounting principle relating to the recognition of vendor allowances of $4.8 million.
This fiscal year, Electronics Boutique exited its EB Kids and BC Sports Collectibles businesses, which accounted for a third-quarter adjusted revenue of $279.2 million and adjusted net income of $2.7 million.
For the nine months, adjusted revenue hit $769.8 million, while adjusted net income, before the cumulative effect of a change in accounting principle, came in at $6.1 million.
In the third quarter, Electronics Boutique opened 133 net new stores, increasing total store count to 1,436 as of Nov. 1. The retailer had 1,078 locations in end the end of last-year's third quarter.
Looking ahead to the fourth quarter, the company expects comp-store sales to decline in the range of 4 percent to 7 percent.