Well, the Street knew that Tweeter Home Entertainment (NYSE:TWTR) was going to report bad numbers for the fiscal first quarter ended December 31 -- but not this bad.
Tweeter this afternoon reported revenue for the quarter of $235 million, down 12% from $267 million a year ago. The Street was looking for $250 million. Comparable store sales fell 10%. Flat-panel TV sales increased 39% in units versus a year earlier, but average selling prices fell 24%. Projection TV revenues fell 45%, similar to the decline in the September quarter. Projection TV units were down 33% versus last year, while pricing was down 18%.
LCD TV unit sales rose 74%; plasma TV sales increased just 3.5% in units.
The company also said that to reduce costs, it has restructured its corporate and administrative functions and cut 20% of its overhead positions, which it says should save $6 million a year.
Tweeter will announce final numbers for the quarter on February 6.
Meanwhile, both Best Buy (NYSE:BBY) and Circuit City (NYSE:CC) are expected to announce December sales tomorrow. Expect to see continued evidence of the toll on margins from aggressive competition in flat panel TVs.