Good Guys Inc., a consumer-electronics retailer that forecast a profit this fiscal year, now expects a loss instead because of dwindling sales caused by slowing U.S. economic growth, the company said Wednesday.
San Francisco-based Good Guys expects a loss in the year ending Feb. 28 that narrows to $4 million to $7 million, from $17.2 million in fiscal 2001. In fiscal 2003, the company will have profit of $10 million to $20 million, Good Guys said.
Earlier this year, as consumer spending slowed, Good Guys cut about 450 jobs, changed its commission plan and realigned staffing. In June, Good Guys said cost-cutting would overcome the economic hurdles and help the retailer to its first profitable year since 1995. It didn't give a profit forecast at the time.
"We absolutely have seen the economy affect our business and the speed of our recovery," Chief Executive Ronald Unkefer said. Good Guys targets affluent customers with higher-priced electronics than national chains such as Best Buy Co. and Circuit City Group Inc., Unkefer said.