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CIRCUIT CITY STORES, INC. REPORTS FIRST QUARTER RESULTS, SUPERSTORE REMODELS AND FISCAL 1994 EXPANSION PLANS

CIRCUIT CITY STORES, INC. REPORTS FIRST QUARTER RESULTS, SUPERSTORE
 REMODELS AND FISCAL 1994 EXPANSION PLANS
 RICHMOND, Va., June 15 /PRNewswire/ -- Circuit City Stores, Inc. (NYSE: CC) today reported net earnings of $11.4 million, or 24 cents per share, for the first quarter ended May 31, 1992.
 Net earnings for the same period last year were $8.0 million or
17 cents per share. Total sales rose 16 percent for the quarter to $644.8 million from $558.1 million in the same period last year. Comparable store sales rose 5 percent.
 "The total and comparable store sales increases were generally in line with our expectations for the quarter," said Richard L. Sharp, Circuit City's president and chief executive officer. "Total sales growth has been limited by the fewer number of store openings in this year's first quarter compared with last year's. This trend will continue until the third quarter, when this year's store opening schedule accelerates." During the quarter, Circuit City opened one Superstore in Salinas, Calif.; and three mall-based Impulse stores in Mesa, Ariz.; Boston, Mass.; and Middletown, N.Y.
 "As anticipated, the highly competitive environment resulted in a lower gross profit margin of 28.2 percent in this year's first quarter versus 29.0 percent in the same period last year," Sharp said. "The lower margin was more than offset by an improvement in the expense ratio to 25.3 percent from 26.4 percent. The improvement reflects our ongoing commitment to expense control and productivity gains."
 The better expense ratio contributed to a higher pre-tax profit margin of 2.8 percent versus 2.3 percent in the same period last year. This improvement and a reduction in the company's effective tax rate produced a net profit margin of 1.8 percent compared with 1.4 percent in last year's first quarter.
 In addition to first quarter earnings, Sharp announced that the company plans to remodel approximately 70 Superstores during the current fiscal year. "The planned remodels will improve customer service and operating efficiency, enable us to expand our selection of personal computers and related products and allow us to test some additional merchandise categories," Sharp said. "We believe these changes will keep Circuit City's consumer offer in the forefront of the industry and further increase our competitive leadership. We expect the remodels to have no material impact on fiscal year 1993 earnings."
 Sharp also announced that Circuit City has added one store in McAllen, Texas, to its fiscal 1993 opening schedule and plans to enter the Boston, Mass., and Chicago, Ill., markets in the fiscal year that begins March 1, 1993. "These two major metropolitan markets represent more than $2.4 billion in industry sales potential," Sharp said. "We expect to enter both markets with a large base of stores and strong support from our existing vendors."
 Circuit City Stores, Inc. is the nation's largest specialty retailer of brand-name consumer electronics and major appliances. With headquarters in Richmond, Va., it operates 184 Superstores, 11 Circuit City stores and 37 Impulse stores in the eastern, midwestern and western United States.
 CONSOLIDATED STATEMENT OF EARNINGS - PERIODS ENDING MAY 31
 (Amounts in thousands except per share data)
 Three Months
 1992 1991
 SALES $ 644,840 $ 558,054
 Cost of Sales, Buying
 and Warehousing 462,677 396,257
 Gross Profit 182,163 161,797
 Selling, General and
 Administrative Expenses 163,012 147,091
 Interest Expense 1,081 1,873
 EARNINGS BEFORE INCOME TAXES 18,070 12,833
 Provision for Income Taxes 6,686 4,812
 NET EARNINGS $ 11,384 $ 8,021
 Earnings Per Share
 Primary & Fully Diluted $ .24 $ .17
 Weighted Average Number
 Common Shares and
 Equivalents Outstanding:
 Fully Diluted 48,010 46,631
 -0- 06/15/92
 CONTACT: Ann M. Collier, Circuit City Stores, Inc., 804-527-4058
 (CC) CO: CIRCUIT CITY STORES, INC. IN: REA SU: ERN ST: VA -- CH001 -- X359 06/15/92
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Date:Jun 15, 1992
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