Circuit City Stores, Inc. (Richmond, Virginia, U.S.) said today that total sales for the third quarter ended November 30, 2005, increased 14.7 percent. Comparable store sales increased 13.1 percent.
The retailer also announced that W. Alan McCollough, chairman and CEO, will retire effective February 28, 2006, and will retire as chairman of the board of directors at the 2006 annual shareholders meeting. He has decided not to stand for reelection to the board at the end of his term that expires in June 2006.
Third Quarter Results
"During the quarter, we continued to build upon the traction that began in the second quarter on our parallel efforts to upgrade, evolve and innovate our business," said W. Alan McCollough, chairman and CEO. "Our sales growth is largely attributed to increases in close rate and average ticket, since store traffic for the quarter was relatively flat. During the quarter we also made significant investments in innovation, a new point-of-sales system and our merchandising systems transformation. Our direct sales channel, led by circuitcity.com, continued to post impressive sales gains, particularly on the day after Thanksgiving. For the quarter, Web-originated sales grew by 74 percent over the prior year."
Several categories showed strength, particularly flat panel televisions, portable digital audio products, notebook computers, and digital imaging products, according to McCollough.
"The brand transition to The Source by Circuit City in Canada is essentially complete," he added. "Our international segment produced strong sales and comparable store sales gains. During the quarter, we increased advertising levels above last year in order to familiarize consumers with the new brand.
Schoonover Will Be New CEO
At a meeting of the Circuit City board of directors on December 17, 2005, Philip J. Schoonover was elected unanimously to the board, effective immediately, and named CEO effective March 1, 2006.
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