Circuit City Posts Profit23 Sep, 2005 By: Holly J. Wagner
Circuit City turned in a profit for the second quarter ended Aug. 31 built largely on sales of digital TVs and music players as DVD player sales fell.
Chainwide sales increased 7.8 percent to $2.56 billion from $2.38 billion in the same period last year, with comparable-store sales increasing 5.3 percent.
The company created its first consumer catalog for the back-to-school season and plans to release a home entertainment catalog for the fourth quarter, CFO Phil Schoonover said.
The entertainment category, which encompasses music, video and game software, declined by single digits on a comp-store basis, including a double-digit slide in music software and single-digit decreases in movie and console video game software.
The category accounted for 10 percent of revenue, down from 11 percent in last year's comparable quarter. More competitive pricing on DVD contributed to the chain's overall margin decline, executives said.
Chairman and CEO Alan McCollough said nine of 11 stores shut in the wake of Hurricane Katrina have reopened.