Tweeter's Profits Triple

The Canton, MA-based electronics retailer reported total sales of $266.5 million for the first fiscal quarter ending Dec. 31, 2005, compared with $258.2 million for the same period a year earlier. Net income during the quarter increased to $14.5 million, or 58 cents a share, from $4.9 million, or 20 cents a share, in the first quarter of 2005 while sales at stores open at least a year were up 6% for the period, the company said.

Flat-panel TV sales helped drive the positive numbers with a 47% sales increase, providing "significant growth" for Tweeter despite an 11% drop in prices, president and chief executive officer Joseph McGuire said in a conference call with investors and analysts Thursday.

"We are pleased with our performance in the quarter on almost every measure," McGuire said. "Overall we feel it's an excellent start to the New Year."

He attributed the jump to an increase in gross profits and a reduction in expenses, primarily due to the closing of 150 Tweeter stores in 2005. The company also got a $13.6 million cash infusion from the sale and leaseback of its Canton headquarters and a New England distribution center.

McGuire said the company's marketing strategy of providing customers with "whole house solutions" to differentiate it from other mass retailers, is yielding a higher gross margin for the high-end electronic retailer. The company operates 157 stores in 22 states under the Tweeter, hifi buys, Sound Advice, Showcase Home Entertainment and Hillcrest High Fidelity flags.