SAN FRANCISCO, Oct. 5 /PRNewswire/ -- Good Guys (Nasdaq: GGUY), a leading
specialty retailer of consumer entertainment electronics, today announced
sales results for the fourth quarter and fiscal year ended September 30.
During the fourth quarter, comparable store sales for continuing
categories climbed 16.5 percent and total sales rose 10.6 percent, marking the
first double-digit sales increases the company has posted since 1994. Total
sales for the fourth quarter were $212.1 million compared to $191.9 million
for the fourth quarter of fiscal 1999 while sales for continuing categories
increased to $212.1 million from $182.0 million in the same period. Sales for
continuing categories exclude computers and home office products, which the
company discontinued during the fourth quarter of fiscal 1999 to sharpen its
focus on mid to high-end consumer entertainment electronics.
"Over the past year we have been working diligently to transform Good Guys
into a top tier specialty retailer and offer our customers a differentiated
selection of digital and high-tech consumer entertainment electronics," said
Ronald A. Unkefer, founder, chairman and chief executive officer, Good Guys.
"This impressive same-store sales increase not only validates this strategy,
it gives us the confidence and credibility to enter the holiday season and new
fiscal year stronger and healthier than we have been in years and positions us
to continue regaining market share and building top-line sales."
Sales for the quarter were driven by the combined results of the new
in-store format introduced earlier this year, an improved and expanded
advertising effort and the company's renewed emphasis on promoting and selling
a more differentiated selection of fully featured consumer entertainment
electronics. Demand for digital products, including high-definition
televisions, digital cameras and camcorders and DVD players, continued to be
strong.
For the fiscal year ended September 30, sales for continuing categories
and comparable store sales for continuing categories both grew 4 percent.
Total sales for the fiscal year were $860.7 million compared to $915.5 million
in fiscal 1999. The decline in total sales reflects the elimination of
computers and home office products and the de-emphasis of entry-level
offerings.
"This year has been a time of transition and even with double-digit sales
growth for the fourth quarter, we will not reach break-even for the year.
However, we are energized by the current sales trends and are confident that
we can continue posting sizeable same store sales growth moving forward," said
Unkefer. "Over the past 12 months we have put the fundamentals in place to
have a profitable fiscal 2001 and have assembled both the people and the
products necessary to further bolster our sales and achieve sustainable,
long-term profitability."
Unkefer also said that the company expects cash flow and earnings before
interest, taxes, depreciation and amortization (EBITDA) to be positive for
both the quarter and the year.
Good Guys will hold a conference call to discuss fourth-quarter sales and
introduce newly appointed officers President Kenneth R. Weller and Chief
Financial Officer Robert A. Stoffregen to the investment community today at
1:30 p.m. Pacific Daylight Time. Interested parties are invited to listen to
the call via a webcast that can be found on the investor relations section of
the company's web site, http://www.goodguys.com. The conference identification
number is 766352.
Good Guys is a leading specialty retailer of consumer entertainment
electronics, offering a distinctive selection of fully featured digital and
high-tech products from more than 100 of the world's most respected
manufacturers. Founded in 1973, Good Guys currently operates 79 stores in
California, Nevada, Oregon and Washington.
To the extent this news release contains forward-looking statements, such
statements are subject to risks and uncertainties, including, but not limited
to, the successful implementation of the Company's 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, Inc.
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http://www.thegoodguys.com
Company News On-Call:
http://www.prnewswire.com/comp/108403.html or fax,
800-758-5804, ext. 108403
CONTACT:
Kristen Lark of Good Guys, Inc.,
214-220-2484, or klark@goodguys.com
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