SAN FRANCISCO -Strong demand for digital and high-tech electronics helped Good Guys boost net income for the three months ending Dec. 31 to $5.8 million, up from $5.6 million in the year-ago period. Excluding a one-time real estate gain of $1 million, net income for the three months increased 26.3 percent.
Net sales for the three months, as previously reported, climbed 8.5 percent to $282.2 million, up from $260.9 million in the same three months last year.
Lower gross profit margin for the three months reflected the promotional holiday selling environment, stronger sales of traditionally lower-margin video products, and the company's successful efforts to regain market share during the period.
Gross profit margin was 230 basis points lower, at 27.9 percent, compared with 30.2 percent in the same three months in 1999.
"We are targeting gross profit margins of 27 to 29 percent, and same-store sales in the mid-single digits throughout 2001, which should enable Good Guys to continue growing our business and achieve sustainable profitability," said chairman/CEO Ron Unkefer.
Last month, Good Guys said it was changing its fiscal year to coincide with other major publicly traded consumer electronics retailers. The company plans to report sales and financial results for the five-month transitional period ending Feb. 28. Moving forward, Good Guys' fiscal year will end on the last day of February. The next complete fiscal year, fiscal 2002, will begin on March 1.