Circuit City Sales, Profits Soar In 1st Qtr. - Twice

Circuit City Sales, Profits Soar In 1st Qtr.

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Circuit City reported May sales at its consumer electronics/appliance retail stores were up 13% to $791.4 million, with comparable stores showing an 8% rise. For its fiscal first quarter sales totaled 2.2 billion, up 15%, with same-store volume up 9%.

The strong sales growth combined with increased consumer "demand for full-featured products and new technologies," will boost net from store operations for the quarter to about $39 million from last years $13.7 million, chairman Richard Sharp indicated.

Data provided by Circuit City also indicates that losses from the promotion of the Divx feature for DVD players will cut store earnings by some $16 million. At the same time the stores operation will gain about $2 million from its share of earnings from the formerly unprofitable CarMax operation.

Separately, Circuit City announced it has been selected by cable operator MediaOne to handle the national launch of Cable Labs Certified modems that meet the DOCSIS (Data Over Cable Service Interface Specification) standard. The modems will be sold, in partnership with MediaOne, and will provide high-speed access to MediaOne's RoadRunner high-speed broadband Internet service.

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