Rex Stores gave credit to home theater products for helping its earnings to soar on strong total and same-store sales in its fiscal third quarter.
For the three months to October 31 the Dayton, Ohio-based specialty chain reported net of $2.64 million, after a one-time post-tax charge of $717,000 for early debt extinguishment. That profit more than tripled its $732,000 earnings in the same period last year.
Revenue for the quarter, at $102.4 million, increased 10.6%. For its fiscal nine-month period Rex's net climbed 159.7% to $8.65 million from the year-earlier $3.33 million, as revenue rose 13.3% to $234.1 million.
Merchandise sales at stores open at least six full quarters increased 8% for the quarter and were up 11% for the first nine months.
"Third-quarter results benefited from strong sales of DVD players and big-screen TVs," said Stuart Rose, chairman of the 228-outlet retailer. "Going forward, we expect the strongest industry growth category to be digital products and believe we are well-positioned to generate continued growth from the digital product cycle."