Systemax Posts Gains In Sales, Profits In Q3
By Alan Wolf -- TWICE, 11/23/2009
PORT WASHINGTON, N.Y. — Tight cost controls and new store growth helped push Systemax's sales and earnings higher during the third quarter ended Sept. 30.
The IT manufacturer and parent of the CompUSA, TigerDirect and CircuitCity.com retail businesses said net sales rose 2 percent to $753.9 million while net income increased nearly 12 percent to $12.6 million.
Excluding currency fluctuations, consolidated sales grew 6 percent, the company said.
Retail and direct-to-consumer sales rose 9.5 percent to $426.2 million, and same-store sales increased 6 percent as the company opened new CompUSA locations, for a total of 27, and resurrected CircuitCity.com.
“Our consumer channels in North America reported our strongest results,” said chairman/CEO Richard Leeds. “We are broadening our reach in the consumer electronics market, both through our retail stores and our e-commerce Web sites.”
CompUSA recently opened two new brick-and-mortar stores, Leeds said, with another planned to open later this month. Leases have also been signed for additional stores in several new markets that will open in the coming months, and the company continues to convert existing CompUSA locations to its new, Web-enabled Retail 2.0 format.
Meanwhile CircuitCity.com has successfully reactivated many of its former customers, Leeds noted, and sales from the site contributed to the company's overall sales growth. “We remain very optimistic about the long-term possibilities for this valuable asset,” he said.
He added that TigerDirect continues to be a market leader in online PC and CE retailing, and that he is “cautiously optimistic that we have seen the bottom” of the worldwide economic slowdown.
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