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Tweeter Expects 9% Q2 Comp-Store Drop

2/27/2002 02:48:00 PM Eastern

The retailer, previously expecting second-quarter sales to be flat, said comp-stores sales through Feb. 25 - nearly two thirds of the three-month reporting period - were down about 8.5 percent. Tweeter revealed the negative comp-store performance is occurring in all its regions except California, which is slightly positive over the same two months.

Although Tweeter considers March the easiest comp-store month of the quarter, it expects comp-store sales for the three months, ended March 31, to finish down about 9 percent, compared with a plus 3.6 percent in the same quarter the previous year.

Slowing traffic, the main reason for negative sales, is being reported in every region. Tweeter said the Super Bowl, which historically drives business, was a non-event, with the exception of the week before the game in New England.

The Sound Advice chain is not included in the second quarter's comp sales calculation, and is performing slightly better than its parent, down about 3.1 percent through Feb. 25.

Tweeter reported some product shortages of key tube and projection televisions by a major vendor, and that LCD panels have been completely out of stock. The retailer expects these products to be in plentiful supply by the beginning of March.