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Tweeter Q2 Sales Up 4%

4/06/2004 12:41:00 PM Eastern

Canton, Mass. — Total revenue for Tweeter Home Entertainment Group rose 4 percent to $189 million for its second fiscal quarter ended March 31, while comparable store sales returned to positive territory with a 3 percent gain.

"It feels good to once again have a positive comp quarter under our belts," said president/CEO Jeff Stone.

Chief Financial Officer Joseph McGuire attributed the gains to new supply chain initiatives, which are beginning to yield improved turns and in-stocks while reducing discontinued inventory.

Total inventory levels and outstanding debt have also declined, McGuire noted.

Stone also reported that the company’s in-home services division — which he described as "a critical link to our divergent future" — enjoyed a record quarter, up 30 percent in dollars year-over-year and now representing 3.5 percent of total Tweeter revenue.

He added that comp store sales would have been even higher, save for a decision to scrap a private customer sale in February.

Added McGuire: "We believe that the decisions that we are making around managing inventory, changing internal process and brand repositioning, although having negative short-term impact [on earnings], are in the best interest of the future of our franchise."

Tweeter will release its second quarter earnings on April 27.