Tweeter Home Entertainment Group's second fiscal quarter's operational revenue dropped 12 percent to $139 million primarily due to a tremendous drop in projection TV sales.
Joe McGuire, Tweeter president and CEO, cited the 44 percent drop in projection sales the chain experienced during the quarter, ended March 28, as the main reason for its poor performance. This decline represents a $13.6 million fall-off in revenue compared to the same period last year, he said.
"As part of our sales mix, it went from 18 percent of revenue for the quarter last year, to 11 percent this year," McGuire said.
Tweeter announced a major reorganization just prior to the end of the quarter that will see the chain shutter 49 locations. Tweeter will release its full financial report on May 10.
On the flip side, flat-panel TV unit sales increased 25 percent to more than 25,000 sets sold, generating $55.4 million in revenue, up from $54.6 million during the same period last year. This category now comprises 37 percent of the chain's product mix, up from 32 percent in 2006.
Of the two flat-panel technologies, Tweeter is seeing growth in LCD while plasma sales dipped 12 percent. LCD now comprises 65 percent of Tweeter's flat-panel sales, with 16,000 units going out the door during the quarter, while 8,700 plasma units sold. Average selling price for plasma dropped $1,000, to $2,600, compared year-over-year.
The car electronics segment was also a drag on the company, dropping 20 percent for the quarter, generating $11.5 million in revenue for the period. The lone bright spot for the category was car navigation.
"Although we are pleased with an increase in our portable navigation business, we are disappointed with the large year-over-year declines in the mobile category," McGuire said.
Home audio sales also provided some support with receiver sales growing along with a small uptick in installation sales.