Dania Beach, Fla.-Skill and success in providing upscale products, customized design and installation services and customer support did much to help Sound Advice attain record sales and operating results for the fourth quarter and fiscal year ended Jan. 31.
The upscale CE retailer, with stores in Florida and Arizona, reported net sales of $69.3 million for the fourth quarter, a 17.6 percent increase over the $58.9 million recorded in the year-ago three months. Comp-store sales climbed 5.4 percent in the fourth quarter.
While gross profit climbed 17.1 percent to $24.2 million from $20.7 million in the same period the prior year, net income, which included an income tax provision of $1.8 million, decreased to $2.7 million, compared with $4.1 million in the year-ago quarter, which included a tax benefit of $1.2 million.
Net sales for the fiscal year increased 11.9 percent to $198.4 million, compared with $177.3 million in the same quarter last year. Comp-store sales in the 12 months rose 7.1 percent. While gross profit climbed 13.4 percent to $70.6 million, up from $62.3 million in the prior fiscal year, net income totaled $4.7 million, including an income tax provision of $3.1 million, down from the $6.5 million net earned in the previous year, which included a tax benefit of $1.2 million.
"The acquisition of Showcase Home Entertainment represents the company's first out-of-state initiative and is consistent with our objective of supplementing internal growth with selective acquisitions within the high-end segment of the CE and custom installation industry," said chairman/CEO Peter Beshouri. "We intend to continue expanding our retail-store networks in both Florida and Arizona during the current fiscal year."
Sound Advice operates 24 Sound Advice units, four Bang & Olufsen specialty stores, and one Bang & Olufsen/Electronic Interiors concept store in Florida; two Showcase Home Entertainment locations in Scottsdale and Chandler, Ariz.; and one home theater showroom located in the Sears Great Indoors store in Scottsdale.