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Non-Tech : CompUSA (CPU)
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To: jimmy who wrote (54)1/2/1997 5:16:00 PM
From: jimmy   of 3187
 
COMPUSA (NYSE: CPU) plunged $4 3/8 to $16 3/8 today on heavy volume
after the personal
computer retailer announced quarterly sales results for its fiscal second quarter. Although net sales
increased a healthy 22% during the period to $1.20 billion, comparable store sales only edged up
1.5%, well below the 7.2% the company reported last quarter. To explain the anemic same-store
sales results, Chief Executive James Halpin cited tough comparisons with the introduction of
Windows 95 last year and ominously pointed to "a softening of retail sales towards the end of the
holiday season."

The August 1995 introduction of Windows 95 created a huge bulge in sales in the December
quarter of 1995 for retail computer outlets, making comparisons to last year tough -- something
that BEST BUY (NYSE: BBY), CIRCUIT CITY (NYSE: CC) and OFFICEMAX (NYSE:
OMX) have been struggling with for weeks. Long viewed as immune to vagaries in the consumer
diet for personal computers, CompUSA had been one of the few retail names to consistently post
strong results in the face of this widespread weakness. Today Goldman Sachs slashing its rating on
CompUSA, as analysts had anticipated stronger sales from the company over the crucial holiday
season. The Street has been worried about sales from CompUSA since last quarter, when the
company was whacked after reporting first quarter results

jimmy
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