Canton, Mass. – Tweeter Home Entertainment Group reported a 2 percent decline in total revenues for its fiscal second quarter, attributable in part to the Iraqi conflict and the pre-war fears leading up to it, the company said.
Comparable store sales, excluding the Hillcrest chain’s results for January and February, declined 12 percent for the three-month period ended March 31.
‘Clearly, the war is not good for our business, but the threat of war was not good for it either,’ said president/CEO Jeff Stone.
Bright spots included Tweeter’s flat panel business, which was up 120 percent in dollars and 146 percent in units over the same quarter last year, and now represents 11.6 percent of total sales. The company has also managed to reduce its inventory levels to $145 million, said CFO Joe McGuire.
Tweeter opened three new locations during the quarter, bringing its store count to 177, and plans only one relocation for the remainder of the fiscal year.
Looking ahead, Stone believes that Tweeter’s customers will resume making big ticket purchases once the war concludes and the marketplace stabilizes.