Harvey Electronics, an upscale metro New York retail chain, posted double-digit sales gains but continuing losses in its quarter and fiscal year to October 30. But it expects to report a profit in its first fiscal-2000 quarter, the company said.
For the three months Harvey had a net loss of $609,200, down from the year-earlier deficit of $755,500, while sales rose 24.1 percent to $5.11 million. For the year its losses increased slightly to $919,900 from the $918,247 of fiscal 1998, while sales, at $21.4 million, climbed 23.9 percent. Same-store sales were up 1.2 percent for the quarter and 3.5 percent on the year.
Harvey said the overall sales growth came primarily from three stores opened during fiscal 1999, including its first Bang & Olufsen outlet. The comparable-store gains came from "increased demand for new digital products and an increase in our custom-installation services."
Combined equipment-installation sales accounted for 26 percent of 1999 revenue, Harvey said. The gradual ramp-up of sales at the new outlets, pre-opening costs and higher overhead expenses "had a significant impact on bottom-line performance for fiscal 1999."
President Franklin Karp said sales at the new stores are maturing as expected and will result in strong bottom-line improvement.