Circuit City

BY THE NUMBERS

December 17, 1991

Circuit City Stores Inc., a consumer electronics store chain that is based in Richmond, Va., held its own in a tough market during the third quarter as cost-cutting offset tight gross margins and sluggish sales.

The company reported yesterday that net earnings for the quarter that ended Nov. 30 totaled $8.8 million, or 19 cents per share.

That represented a dramatic improvement over last year's $2.5 million, or 5 cents per share. But 1990's third quarter was the worst in years for the fast-growing retailer, so this year's results marked a return to form rather than a stride forward.

"Our third-quarter results reflect the highly competitive environment engendered by continued low levels of consumer confidence and spending," said Richard L. Sharp, Circuit City's president and chief executive officer. "In this environment, consumers are more price-conscious than normal and the competitive climate becomes highly promotional."

Sales rose 19 percent, to $694.0 million from $585.0 million in the third quarter of last year, but comparable-store sales -- figures for stores that have been open at least a year -- rose only 1 percent.

H. B. Thomson III, senior vice president at Wheat First Butcher & Singer, said the results represented "a good quarter overall" for a chain selling mostly big-ticket items in a recession.

Three months ended 11/30/91

.. Revenue .. .. .. .. Net .. .. .. .. .. Share

'91 .. .. 694,031,000 .. .. 8,799,000 .. .. .. 0.19

'90 .. .. 585,041,000 .. .. 2,531,000 .. .. .. 0.05

% change .. +18.6 .. .. .. .. .. +247.7 .. .. .. +280.0

Six months ended 0/00/91

.. .. .. Revenue .. .. .. ..Net .. .. .. .. .. .. Share

'91 .. 1,886,907,000 .. 34,185,000 .. .. .. .. 0.73

'90 .. 1,625,732,000 .. 29,977,000 .. .. .. .. 0.64

% change .. +16.1 .. .. .. +14.0 .. .. .. .. .. ..+14.1

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