DANIA BEACH, FLA. -- Sales of A/V gear, mobile products and custom installation services helped advance Sound Advice's revenue and earnings during its fiscal second quarter.
For the three-month period ended July 31, net sales rose 3 percent to $41.8 million, up from $40.7 million in the same period last year.
Same-store sales volume remained flat, but expectations were in line with last year's second-quarter volume, when the 28-store upscale CE retailer enjoyed a 20 percent comp-store increase.
By contrast, gross profit grew 7 percent for the quarter to $14.9 million, up from $13.9 million, and gross profit margin improved by 130 basis points to 35.6 percent.
Chairman/CEO Peter Beshouri attributed the specialty chain's improving profit picture to a favorable sales mix and strong sales of projection TVs, audio speakers, mobile multimedia and custom home installation services.
Income from operations was up 29 percent for the quarter to $1.6 million, from $1.2 million in the previous three months, while pretax income rose 28 percent to $1.1 million, up from $882,000 in the year-ago quarter.
However, net income dropped 28 percent to $689,000, from $882,000 in the comparative quarter last year, due to the inclusion of an income tax provision. The company accrued no income taxes during the comparable period last year.
For the six months, net sales rose 7 percent to $84.5 million, up from $79.2 million in the year-ago quarter. Comp-store sales for the six months were up by more than 6 percent. Based on sales in the first month of the third quarter, Sound Advice expects same-store sales growth in second-half fiscal 2001 to closely reflect its first-quarter same-store sales performance of 11 percent.
Gross profit reached $30 million, up nearly 10 percent from the $27.5 million recorded in the same six months of 1999.
All is go at Sound Advice for a planned October opening of its first ultra-high-tech concept store, called Electronic Interiors, which will include an adjacent Bang & Olufsen location.
Electronic Interiors will be placed in upscale shopping malls and will average about 6,000 square feet. The new concept will capitalize on providing fully integrated custom home entertainment systems. The first store will be located in Palm Beach Lakes Mall; a second is set for the West Coast of Florida in 2001.