Circuit City CEO “Disappointed” With Q3 Performance
According to Q3 results released by Circuit City Tuesday, net sales for the company grew 6.9 percent, with a comparable store sales gain of 5.1 percent versus a comparable store sales gain of 13.1 percent in 2005. In addition, gross profit margin declined 192 basis points compared with last year. This was credited to a decline in merchandise margin for televisions, PC hardware and entertainment software and a decline in extended warranty net sales.
Circuit City Chairman, President and CEO Philip J. Schoonover said, “While we are disappointed with our profit performance this quarter, we continue to see evidence that we are on the right long-term path to sustainable growth. We saw sales growth in the key pillars of home entertainment, multi-channel and services. These efforts allowed us to report solid comparable store sales growth despite facing a 13.1 percent comparison from last year. We also made progress in building our pipeline of new Superstore sites.”
The store also experienced a 67 percent increase in Web-originated sales, an 84 percent increase in call center sales and a 72 percent increase in services revenues versus last year.
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