THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Friday, September 15, 1995 TAG: 9509150582
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
TYPE: DIGEST
LENGTH: Short : 24 lines
Circuit City Stores Inc.'s second-quarter earnings rose a less-than-expected 14 percent on growing sales of personal computers. The electronics retailer said net income for the quarter ended Aug. 31 rose to $41.2 million, or 42 cents a share, from $36.1 million, or 37 cents, a year earlier. Earnings fell short of the average estimate of 43 cents a share of 14 analysts surveyed by Zacks Investment Research. A rise in sales of PCs squeezed margins, since computers carry lower margins.
Gross profit declined to 23 percent of sales from 25.4 percent. Increasing competition, which created a more promotional environment, also cut into margins. (Bloomberg) by CNB