SAN FRANCISCO, Jan. 4 /PRNewswire/ -- Good Guys (Nasdaq: GGUY), a leading
specialty retailer of consumer entertainment electronics, today announced that
its repositioning strategy led to margin growth and healthy sales of
continuing product categories during the fiscal first quarter ended
December 31.
Sales for continuing categories increased approximately 1 percent, and
comparable store sales improved month-to-month during the quarter.
"As expected, our aggregate sales were down from the previous year due to
the discontinuation of marginally profitable personal computers and home
office equipment," said Ronald A. Unkefer, founder, chairman and chief
executive officer of Good Guys. "We shifted our emphasis to selling a
profitable mix of digital and high-tech entertainment electronics. Sales of
these products were extremely brisk and delivered an increase in average
product margins of approximately 5 percent."
The company also said that two key indicators -- extended service contract
sales and inventory turns on continuing categories -- increased from year-ago
figures.
"These results confirm that our strategy is working," said Unkefer. "In
just a few short months, we have dramatically repositioned Good Guys as the
premier provider of digital and high-tech consumer entertainment electronics
through a complete overhaul of our inventory and an aggressive, targeted
advertising campaign. The month-to-month comparable store sales improved
sequentially over last year and reflects the effectiveness of these moves. We
expect to be materially more profitable this quarter than the first fiscal
quarter of last year."
Total sales during the quarter were $262.2 million compared to
$294.1 million in the first quarter of fiscal year 1999. As expected, there
was a decline in overall sales primarily due to the discontinuation of
computers and home office products as of September 30, 1999. Comparable store
sales for continuing categories decreased approximately 1 percent from the
same period last year.
"Good Guys is now perfectly positioned to profitably super-serve the
exploding digital and high-tech market," said Unkefer. "We're more confident
than ever that sales of continuing product categories will continue to
increase and that Good Guys will have a profitable fiscal 2000."
Good Guys is a leading specialty retailer of consumer entertainment
electronics, operating a total of 79 stores in California, Washington, Oregon
and Nevada, and marketing a broad range of high quality, name brand products.
For more information on Good Guys, including news releases, product
information and store locations, visit http://www.thegoodguys.com.
To the extent this news release contains forward-looking statements, such
statements are subject to risks and uncertainties, including, but not limited
to the Company's successful implementation of its current restructuring
program, increases in promotional activities of competitors, changes in
consumer buying attitudes, the presence or absence of new products or product
features in the Company's merchandise categories, changes in vendor support
for advertising and promotional programs, changes in the Company's merchandise
sales mix, and economic conditions.
SOURCE Good Guys
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Related links:
http://www.thegoodguys.com
Company News On-Call:
http://www.prnewswire.com/comp/108403.html or fax,
800-758-5804, ext. 108403
CONTACT:
Kristen Malacarne of Good Guys, 214-665-1335,
or pager, 888-613-2159
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