Mr. May continued, “Our appliance business, which is now our largest product category, along with our computing and mobile phones category continue to perform well. We are pleased with the results of our initiatives to drive continued market share gains in the appliance category, resulting in our sixth consecutive quarter of appliance comparable store sales increases. In addition, we are pleased with the consumer acceptance of our new products, particularly the roll-out of the furniture category and the introduction of Apple products. We believe that our service-oriented sales force along with our ability to both offer attractive financing options and deliver big box product to our consumers' home, gives us the flexibility to adapt our business around today's dynamic retail environment.”

All figures in this release are preliminary and remain subject to the completion of normal quarter-end accounting procedures and adjustments, which could result in changes to these preliminary results. Further details of these results will be provided in the Company’s earnings release and conference call discussed in more detail in this release.

Updated Fiscal 2013 Guidance

In light of the preliminary third fiscal quarter sales and earnings results and our revised outlook for the fourth fiscal quarter, the Company now anticipates that annual net income per diluted share will be within a range of $0.70 to $0.80 for fiscal 2013. This compares to previous guidance of net income per diluted share of $0.90 to $1.05 for fiscal 2013. The Company’s revised fiscal 2013 guidance includes the following assumptions:
  • fiscal 2013 comparable store sales of negative 8.5% to negative 7.5%, as compared to previous guidance of negative 6.0% to negative 4.0%
  • fiscal 2013 net sales increase of flat to 1.0%, as compared to previous guidance of net sales increase of 3.0% to 6.0%
  • net capital expenditures of $35.0 million to $40.0 million, as compared to previous guidance of $50.0 million to $55.0 million
  • the impact of fiscal year-to-date share repurchases of 3.6 million shares at a cost of $30.0 million

Jeremy Aguilar, Chief Financial Officer commented, “We continue to test new merchandise categories that will aid us in reducing our overall mix of business from the video category. While the diversification of our business will take time, we are pleased with the early results of the new merchandise initiatives. For the fourth fiscal quarter, we expect to continue to drive comparable store sales increases and market share gains in the appliance and computing and mobile phone categories. However, we anticipate that the industry wide declines in the video category will continue. We also expect our sales mix to have a negative impact on our gross margin rate in the fourth fiscal quarter compared to the prior year. These factors along with our third fiscal quarter results are expected to negatively affect fiscal 2013 earnings, as reflected in our revised guidance.”

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