HRVE...this one is new..on Nasdaq..1.02...only 3.2m outstanding:
B: Harvey Electronics, Inc. Reports Strong Sales Increases for
B: Harvey Electronics, Inc. Reports Strong Sales Increases for Third Quarter
and Nine Months Ended July 27, 2002
LYNDHURST, N.J., Aug 9, 2002 (BUSINESS WIRE) -- Harvey Electronics, Inc.
8.5% Increase in Third Quarter Sales and 9.6% Increase in
Nine-Month Sales
Harvey Electronics, Inc. ("Harvey Electronics", "Harvey" or the "Company".
NASDAQ SmallCap Market symbols: "HRVE" and "HRVEW") announced strong sales
increases for the third quarter and nine months ended July 27, 2002, as compared
to the same periods last year.
For the nine months ended July 27, 2002, net sales aggregated almost $32.4
million, an increase of over $2.8 million or approximately 9.6% from the same
period last year. For the third quarter of fiscal 2002, net sales aggregated
almost $9.6 million, an increase of over $745,000 or approximately 8.5% from the
same quarter last year.
Comparable store sales results for the third quarter of fiscal 2002 increased
over $750,000 or approximately 8.5% from the same quarter last year. Comparable
store sales for the nine months ended July 27, 2002 increased over $970,000 or
approximately 3.3% from the same period last year.
Mr. Franklin Karp, President of Harvey Electronics stated, "We are very pleased
with the strong overall and comparable store sales increases in the third
quarter and for the nine months ended July 27, 2002. Most of our retail stores
produced double-digit percentage sales increases in the third quarter. These
impressive sales results were materially impacted by the continuing success of
our newest Harvey showroom in Eatontown, New Jersey. Eatontown opened in April
2001, approximately 16 months ago, and is maturing faster than expected. Our Mt.
Kisco, New York and our Greenwich, Connecticut stores, which have experienced
declines in sales in the first six months in fiscal 2002, have rebounded in
sales in the third quarter, as compared to the same quarter last year."
Mr. Karp continued, "To date, our comparable store sales are favorable when
compared to certain other consumer electronics retailers, despite the sluggish
retail environment. This is the result of our strong marketing efforts, new
digital technologies which are in strong demand by our customers and
additionally due to our custom installation capabilities."
"Our custom installation sales of equipment and labor accounted for
approximately 50% of our net sales (approximately $16.2 million) for the nine
months ended July 27, 2002, an increase of $4.8 million or 42% from the same
period last year. We believe these custom installation services differentiate
Harvey from our competitors with services they are unable to provide, and
additionally strengthens our overall gross margin. We expect gross margins for
the three and nine months ended July 27, 2002 to improve from the same periods
last year. This is despite a significant increase in video sales, which
typically carry lower margins. The expected improvement in the gross margin is
due primarily from a significant increase in higher-margin custom installation
labor income."
Mr. Karp concluded, "For the remainder of fiscal 2002 and beyond, we plan to
continue to focus our efforts on improving the overall store profitability for
our nine retail showrooms. To accomplish this, we plan to continue maintaining
strict control of selling and other expenses, expand our custom installation
services and digital video and home theater presentations, and continuously
refine our marketing efforts." |
