Financial Report: Net Income Down 67% at Guitar Center

Westlake Village, CA–Guitar Center, which mails the Musician’s Friend and American Music catalogs, (Nasdaq: GTRC), posted a 15% net sales increase for the quarter ended Sept. 30, to $225.0 million, compared to $191.0 million last year. However, net income fell 67% for the quarter to $1.4 million, compared to net income of $4.3 million last year.

“We experienced slower traffic in our Guitar Center stores and reduced order volume in our direct response division that resulted in consolidated sales in September being significantly below our original expectations for the month,” said Marty Albertson, president and co-chief executive officer in a statement. Net sales in its direct response division increased 15%, to $35.7 million, from $31.1 million last year. The company says sales have stabilized in the last few weeks. Sales at the direct response division have also improved and the Musician’s Friend catalog that was mailed to consumers in the first week in October is performing well. Additionally, American Music catalog sales have been in line with our expectations. We are cautiously optimistic regarding the upcoming holiday season.”

Partner Content

Hincapie Sportswear Finds Omnichannel Success in the Cloud - Netsuite
For more and more companies, a cloud-based unified data solution is the way to make this happen. Custom cycling apparel maker Hincapie Sportswear has leveraged this capability to gain greater visibility into revenue streams, turning opportunities into sales more quickly while gaining overall operating efficiency. Download this ecommerce special report from Multichannel Merchant to more.
The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.