Thank you for sharing!

Your article was successfully shared with the contacts you provided.

RICHMOND, VA- Sales of flat-screen televisions helped fourth-quarter profits soar by 65% for Circuit City Stores Inc., where consumers scooped up the electronics at a frenzied pace this holiday season.

Net income increased to $141.1 million, or 80 cents a share, during the three month period ending Feb. 28, 2005 compared to the same period a year earlier when income was $85.4 million, or 45 cents per share. Revenue was also up 13% to $3.9 billion while sales at stores opened at least a year jumped 11% during the quarter, execs with the nation’s second largest electronics chain said.

The Richmond, VA-based chain, which operates more than 1,500 retail stores in the US and Canada, has trailed its major competitor, Best Buy, for a decade. However, last year the company developed a five-year growth plan designed to improve the company’s performance.

As part of a cost-cutting effort, the retailer closed 19 stores, a distribution center and five regional offices last year, cutting its workforce by about 970 full- and part-time employees.

The turnaround attempt apparently paid off with in strong sales of flat-screen televisions, notebook computers and video gaming products, company executives said. Sales of flat-panel televisions were particularly strong with stores open at least a year, experiencing triple-digit growth. Sales of DVD players, however, dropped significantly.

For the fiscal year, the company earned $139.5 million, or 77 cents per share, an increase from the last fiscal year when earnings were $61.7 million or 31 cents per share. Revenue for the year was also up 11% to $11.6 billion.

Circuit City officials expect sales momentum to continue in fiscal 2006, with overall sales increasing between 7% and 11% for the year and sales at US stores open at least a year growing by 5% to 7%.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt. NET LEASE Awards 2020Event

These awards honor the industry's most influential and knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.