X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

RICHMOND, VA-Consumer demand for flat panel television sets helped drive sales up nearly 18% at electronics retailer Circuit City Stores Inc., as first quarter profits surged to $6.4 million, beating analysts’ expectations for the fourth quarter in a row.

The locally based retailer said sales climbed to $2.62 billion for the quarter ending May 31, up nearly 18% from $2.23 billion in the prior year’s period. Domestic sales were up by the same amount, rising from $2.1 billion in first quaarter a year ago to $2.5 billion for this year’s first quarter.

Phil Schoonover, president and CEO, said an “improved in-store customer experience” helped push up the average consumer sale as traffic trends improved due to the chain’s multi-channel marketing efforts. Sales originating on the web also perked up in-store sales as buyers clicked to research products online and picked up their merchandise in Circuit City stores, he said.

The company, which operates more than 1,500 stores in the US and Canada, is also expanding with the opening of three new superstores and two outlet stores during the period, company officials said. Four more superstores are set to open in the second quarter with seven additional superstore outlets planned for the third quarter.

The nation’s second largest electronics chain next to Best Buy reported that strong demand for television, video and audio products helped earnings improve by four cents per share during the quarter compared to last year, when the retailer lost $13.1 million, or seven cents a share, during the first quarter.

Sales at stores open at least a year were up about 15% overall with comparative store sales of flat panel TVs tripling during the three-month period. Domestically, same store sales jumped more than 15% while international comparative store sales increased by just 2.4% the company said.

Comparative store sales of digital imaging products and accessories also increased by double digits despite a decline in comparative store sales of camcorders and DVD hardware. Sales of computer hardware, notebook computers and printer sales also showed an increase, as did sales of portable audio players and accessories.

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
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

 

GlobeSt

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
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.