Circuit City Stores, Inc., based in Richmond, Virginia, U.S., reported yesterday that it was profitable in the second quarter ended August 31, 2005. Second quarter total sales increased 7.8 percent to U.S. $2.56 billion from $2.38 billion in the same period last year, with consolidated comparable store sales increasing 5.3 percent from the prior year.
"We're pleased with returning to second quarter profitability for the first time in five years and with posting a consolidated comparable store sales gain of 5.3 percent," said W. Alan McCollough, chairman and chief executive officer of Circuit City Stores, Inc. "We performed well in many of the categories that are most important to us."
The retailer saw strong television sales performance. As the centerpiece of home entertainment, McCollough said, television "is our most important business." Overall television sales grew by double digits, with digital TV gains more than offsetting analog TV declines. The company says it continues to drive market share increases in plasma and LCD TV.
"We also saw strong sales performance in portable digital audio players and are pleased with the initial consumer response to our national rollout of PC services," McCollough added. In addition, he said, "Our Circuit City Direct business continues to experience strong sales gains."
Canadian stories have recently been rebranded to The Source By Circuit City(SM) and delivered strong comparable store sales gains that improved each month of the quarter.
"In short, we continue to make progress along the path we set forward in May to upgrade, evolve and innovate our business," concluded McCollough.
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