Reflecting the success of its controlled growth and refocus on high-end A/V products and services, Sound Advice posted a steep rise in third-quarter and nine-month earnings on double-digit sales gains.
For the three months to October 31 the Dania Beach, Fla., retail chain had better than an eight-fold leap in net to $959,000 from the year-earlier $116,000, while sales, at $39.8 million, rose 15.6 percent. For the first nine months Sound Advice recorded earnings of $2.46 million, as opposed to a net of just $2,000 in the same period last year. Sales were up 18.3 percent to $101.6 million.
Sound Advice said same-store sales were up 9.5 percent for the quarter and 12.1 percent for the nine months.
The retailer said its earnings surge stemmed from a combination of its comparable store performance, contributions from the two Bang & Olufsen and two Sound Advice stores opened since last December, and a richer sales mix. The sales increases, the company stated, were paced "by strong consumer demand for hi-fi audio equipment, speakers, DVD players, direct view TV sets and HDTV-ready projection TVs."
"It is gratifying to see our niche marketing strategy of offering distinctive merchandise and unmatched customer service working so well for us," said chairman and CEO Peter Beshouri. "More and more, Sound Advice customers are choosing our in-home custom design and installation services, which set us apart from the big-box competitors."
Since the end of the quarter, Sound Advice opened a larger, relocated outlet in Tampa and leased a South Miami location for a fourth Bang & Olufsen store it expects to open in February. The retailer currently has 27 outlets.
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