A 50% increase in the sale of LCD televisions was more than offset by massive declines in all other categories, including a 56% drop in projection TV sales, said Stuart A. Rose, chairman and CEO. The company will continue to shutter selected stores, but does not anticipate a major selloff.
"Nearly everyone in the television business, except for LCDs, is in a rough position," Rose said. "We will continue to evaluate our stores on an ROI basis. If we can't make money, we will look very seriously and decide what to do."
Net income for the quarter was $5.8 million, compared with net income of $1.5 million, in the second quarter of last year. Income was boosted strongly from the company's synthetic fuels business. Net retail sales were $56.3 million compared with $63.6 million last year. Comparable store sales for the quarter declined 12%.
As of July 31, 2007, REX operated 142 consumer electronics retail stores (60 of them company owned) in 35 states. Over the past eight years, the company has been active in several synthetic fuel investments and has agreements to participate in four ethanol entities.
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