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CIRCUIT CITY STORES, INC. REPORTS SECOND QUARTER RESULTS

 CIRCUIT CITY STORES, INC. REPORTS SECOND QUARTER RESULTS
 RICHMOND, Va., Sept. 11 /PRNewswire/ -- Circuit City Stores, Inc. (NYSE: CC) today reported net earnings for the second quarter and six months ended August 31, 1992.
 Net earnings for the second quarter were $21.5 million, a 24 percent increase from $17.4 million in the same period last year. Net earnings per share increased 22 percent to 45 cents from 37 cents. Total sales rose 14 percent for the quarter to $721.3 million from $634.8 million in the same period last year. Comparable store sales rose 4 percent.
 Net earnings for the six months were $32.8 million, a 29 percent increase from $25.4 million in the same period last year. Net earnings per share rose 26 percent to 68 cents from 54 cents. Total sales rose 15 percent in the six month period, to $1.37 billion, from $1.19 billion in the first six months of last year. Comparable store sales rose 4 percent.
 "Circuit City's comparable store sales trend reflects acontinuation of the challenging retail climate," said Richard L. Sharp, Circuit City's president and chief executive officer. "Total sales growth for the first half of the fiscal year has been limited by a lower number of store openings when compared with the same period last year. The store opening schedule will accelerate toward the end of the third quarter. We have opened four Superstores year-to-date and expect to open another 26 by Thanksgiving." During the second quarter, Circuit City opened Superstores in Corpus Christi, Texas; and in Tampa and Gainesville, Fla. The company also opened one mall-based Impulse store in Freehold, N.J.
 "An increase in competitive and promotional activity resulted in a second quarter gross profit margin of 27.8 percent versus 29.0 percent in the same period last year," Sharp said. For the first six months, the gross profit margin was 28.0 percent of sales versus 29.0 percent in last year's first half.
 "A 110 basis point improvement in the expense ratio offset the competitive pressure," said Sharp. "The continuation of our expense ratio improvements reflects our ongoing commitment to productivity gains and expense control and the improved results from our credit card operation." Selling, general and administrative expenses were 23.1 percent of sales in this year's second quarter versus 24.2 percent in the second quarter of last year. For the six month period, the expense ratio improved to 24.1 percent versus 25.2 percent in the same period last year.
 A reduction in interest expense as a percent of sales and a lower effective tax rate produced a second quarter net profit margin of 3.0 percent, up from 2.7 percent in last year's second quarter. For the six month period, the net profit margin rose to 2.4 percent from 2.1 percent.
 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 187 Superstores, 11 Circuit City stores and 38 Impulse stores in the eastern, midwestern and western United States.
 CONSOLIDATED STATEMENT OF EARNINGS -- PERIODS ENDING AUGUST 31
 (AMOUNTS IN THOUSANDS EXCEPT PER SHARE DATA)
 THREE MONTHS SIX MONTHS
 1992 1991 1992 1991
 SALES $ 721,251 $ 634,822 $1,366,091 $1,192,876
 COST OF SALES,
 BUYING AND
 WAREHOUSING 520,751 450,941 983,428 847,198
 GROSS PROFIT 200,500 183,881 382,663 345,678
 SELLING, GENERAL
 AND ADMINISTRATIVE
 EXPENSES 166,352 153,669 329,364 300,760
 INTEREST EXPENSE 98 2,428 1,179 4,301
 EARNINGS BEFORE
 INCOME TAXES 34,050 27,784 52,120 40,617
 PROVISION FOR INCOME
 TAXES 12,600 10,419 19,286 15,231
 NET EARNINGS $ 21,450 $ 17,365 $ 32,834 $ 25,386
 EARNINGS PER SHARE
 PRIMARY & FULLY
 DILUTED $ .45 $ .37 $ .68 $ .54
 WEIGHTED AVERAGE NUMBER
 COMMON SHARES AND
 EQUIVALENTS OUTSTANDING:
 FULLY DILUTED 47,889 47,115 47,946 46,961
 -0- 9/11/92
 /CONTACT: Ann M. Collier, Circuit City Stores Inc., 804-527-4058/
 (CC) CO: Circuit City Stores Inc. ST: Virginia IN: REA SU: ERN


CM -- CH001 -- 8326 09/11/92 08:40 EDT
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Date:Sep 11, 1992
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