Port Washington, N.Y. - Tight cost controls and new store growth
helped push Systemax's sales and earnings higher during the third quarter ended
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
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.