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Good Guys Net Loss Down

6/20/2002 08:53:00 AM Eastern

San Francisco - Good Guys said it made significant progress in virtually every area of its business during its fiscal first quarter - including sales, gross profit margin, selling, general and administrative (SG&A) expenses and inventory management.

At the same time, the retailer reported a net loss of $4.6 million for the period, reduced by nearly half from the $10.1 million net loss recorded in the first three months of last year.

'With the success we have achieved in our store-closing program, Good Guys is now focusing our full attention on driving sales and profits at those stores that best support our efforts to super-serve the top half of the entertainment electronics market .,' said Kenneth R. Weller, chairman/CEO. Since January, the chain has closed seven of the eight unprofitable stores targeted for closure.

Gross profit margin for the first quarter, ended May 31, climbed 40 basis points, to 28.8 percent, up from 28.4 percent year over year. SG&A was reduced by 180 basis points, to 29.8 percent, down from 31.6 percent in the same period in 2001.

As reported, Good Guys sales in the first quarter were flat at $171 million, down slightly from the $171.5 million in the year-ago three months. This reflects store closings of the under-performing locations.

Comp-store sales increased 2 percent in the first quarter, the retailer's first positive comp-store increase in four quarters. This reflects strong demand for digital products and improving economic conditions in California, according to Good Guys.