DANIA BEACH, FLA. -Robust demand for high-end consumer electronics and custom services confirms that a strategy of offering better goods and high-level design and installation services is working well for upscale consumer electronics, said retailer Sound Advice.
This strategy pushed the company's net sales for the third quarter, ended Oct. 31, up 14 percent to $44.6 million, compared with $39.3 million in the same three months last year. Comp-store sales climbed 11 percent in the third quarter of fiscal 2001, compared to 9.5 percent in the prior year's third quarter.
"We are very satisfied with our improvement in comp-store sales and the completion of the Showcase Home Entertainment acquisition," said Peter Beshouri, chairman/CEO.
Sales for the nine months jumped 9 percent to $129.1 million, compared with $118.4 million in the year-ago third quarter. Comp-store sales increased 8 percent for the nine months, compared with the same period in 1999.
Sound Advice also said it has terminated its previously announced public stock offering. Volatility in the financial markets and the retailer's stock price relative to other specialty electronics retailers were cited as reasons for this decision. The termination of the secondary stock offering will not affect any planned store openings scheduled for at least the next 12 months, said Sound Advice.
Sound Advice operates 24 Sound Advice units in Florida, four Bang & Olufsen specialty stores and one Bang & Olufsen/Electronic Interiors concept store, two Showcase Home Entertainment stores in Scottsdale and Chandler, Ariz., and one home theater showroom located in Sears' Great Indoors store in Scottsdale.