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Good Guys' Q1 Comps Grow 2%

6/06/2002 11:42:00 AM Eastern

San Francisco - Finally finding traction following a series of new initiatives, Good Guys reported its first positive comp store gains in four quarters.

Same store sales rose 2 percent for the three months ended May 31 thanks to strong demand for digital products, higher average tickets and improving economic conditions in California, the company said.

Net sales dipped $500,000, or 2.9 percent, to $171 million, reflecting the closing of several under-performing stores this year.

The chain enjoyed continued "fast-pace growth" in high-end TVs - including digital sets and plasma and liquid crystal displays - as well as in DVD recorders, mobile video and digital cameras and camcorders. Digital devices now comprise more than 60 percent of Good Guys' total product sales, the company reported.

"Good Guys is committed to maximizing sales opportunities by enhancing the in-store customer experience and more effectively marketing and differentiating ourselves to early adopters and tech-savvy consumers," said chairman/CEO Ken Weller.

The positive comp sales results follow last month's announcement that Bank of America and GE Capital had extended Good Guys' expiring three-year, $100 million credit facility to May 2006. Weller said the enhanced credit line will provide added flexibility and borrowing capacity, and will help improve operating efficiencies and lower costs.

In other retail sales news:

  • Sears said May revenue dipped 1.5 percent to $2.3 billion and comps declined 4.4 percent. Said chairman/CEO Alan Lacy, "We remain pleased with our profit improvements and inventory position despite the revenue decline."

  • Net sales at Wal-Mart stores grew 13.6 percent to $11.79 billion in May, while comp sales rose 6.8 percent.

  • Net sales at Target stores rose 15.2 percent to $2.51 billion in May, while comps grew 4.6 percent.

  • Costco's net sales grew 10 percent to $2.95 billion in May, while comps gained 6 percent domestically.

  • Sam's Club net rose 9.8 percent to $2.45 billion in May, while comps grew 3.7 percent.

  • BJ's Wholesale Club said May sales soared 13.6 percent to $455.1 million and comps gained 3.3 percent thanks partly to strength in room air conditioners.