Consumer electronics retailer Circuit City Stores, Inc. reported net sales for the first quarter ended May 31, 2006 increased 17.5 percent to U.S. $2.6 billion compared to $2.2 billion in the prior-year period.
In the video category, sales increased to 44 percent of store sales compared to 42 percent in 2005. Circuit City said the increase was led by triple-digit comparable store sales growth in flat-panel displays. Growth was partially offset by a single-digit decline in comparable store sales of camcorders and a double-digit decline in comparable store sales of DVD hardware.
In the information technology category, Circuit City produced a 29-percent comparable store sales increase in the first quarter driven by a double-digit comparable store sales increase in PC hardware. Comparable store sales of notebook computers and printers increased by double digits, and comparable store sales of monitors increased by single digits. Growth was partially offset by a low single-digit decrease in comparable store sales of desktop computers.
In the audio category, Circuit City produced a 16-percent comparable store sales increase in the first quarter, primarily reflecting double-digit comparable store sales growth in portable digital audio products and a triple-digit increase in portable digital audio accessories. Comparable store sales growth in portable and mobile audio products was partially offset by a mid-single-digit comparable store sales decline in home audio products.
The company continues to expect consolidated net sales growth of 7 percent to 11 percent in fiscal 2007. Circuit City said it expects continued sales growth with flat-panel TVs, notebook computers, digital imaging, and portable digital audio players.
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