Dennis May, President and CEO commented, "Our sales results for the quarter are an indicator of the difficulty in the current retail environment, and more specifically the embedded volatility in the video industry. While we remain disappointed in our video results, we continue to make progress on our key initiatives of gaining market share in the appliances category, making strides toward stabilizing gross margin rates, and dynamically growing our e-commerce business. We remain committed to our model of competing on price and differentiating ourselves through service on big box consumer products. While big box consumer products today are defined as appliances and large screen televisions, we continue our plans to test new products that will help fill the void from sales declines in the video category. We continue to look for products that complement our consultative sales force, leverage our delivery and installation network, and utilize our private label consumer credit card."
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 the results of the Company will be provided in the Company's earnings release and conference call on August 2, 2012.
Updated Fiscal 2013 Guidance
In light of the preliminary fiscal first quarter sales results and the anticipated impact of our current business trends; the Company now anticipates that annual net income per diluted share will be $0.90 to $1.05 in fiscal 2013. This compares to previous guidance of net income per diluted share of $1.12 to $1.27. The Company's revised fiscal 2013 (year ending March 31, 2013) guidance comprises the following:
fiscal 2013 comparable store sales of negative 6% to negative 4%, as compared to previous guidance of negative 1% to positive 1%; fiscal 2013 net sales increase of 3% to 6%, as compared to a previous guidance of net sales increase of 9% to 12%; 20 to 22 new store openings in fiscal 2013; and the impact of first quarter share repurchase activity of 1.1 million shares at a cost of $11.2 million. Jeremy Aguilar, Chief Financial Officer commented, "Based on the continued headwinds in the video industry and our first quarter results, we are taking measures to reduce costs and realign our operating structure moving forward. We have put plans in place to reduce our advertising expenditures, restructure our field teams, and implement measures to maximize our profitability on certain services and product offerings. We believe these actions will help offset the continued negative trends within our video business and ultimately allow us to achieve our revised earnings guidance."