ALERT SEE NEWS SALES EXCEED EXPECTATIONS 51% + !
Circuit City Stores, Inc. Reports Record Sales For the
Circuit City Group and the CarMax Group
February Comps Increase 18 Percent for Circuit City, 30 Percent for CarMax
Estimates Fourth Quarter EPS Increase of 25 Percent for the Circuit City Business, CarMax
Operating Results to Exceed Expectations
RICHMOND, Va., March 6 /PRNewswire/ -- Circuit City Stores, Inc. today reported February, fourth quarter and fiscal
year 2000 sales for Circuit City Stores, Inc., the Circuit City Group (NYSE: CC - news) and the CarMax Group (NYSE:
KMX - news) and announced fourth quarter and fiscal 2000 earnings expectations for the Circuit City and the CarMax
businesses.
For February, total sales for Circuit City Stores, Inc. rose 24 percent to $1.11 billion from $893.7 million in February 1999.
For the fourth quarter ended February 29, 2000, total sales for Circuit City Stores, Inc. rose 17 percent to $3.98 billion from
$3.40 billion in the same period last year. For the fiscal year ended February 29, 2000, total sales for Circuit City Stores, Inc.
rose 17 percent to $12.62 billion from $10.80 billion in fiscal 1999.
THE CIRCUIT CITY GROUP: February Comparable Store Sales
Increase 18 Percent
For the month of February total sales for the Circuit City Group were $923.8 million, a 20 percent increase over February
1999 sales of $769.8 million. Comparable store sales rose 18 percent. For the fourth quarter ended February 29, 2000, total
sales for the Circuit City Group were $3.48 billion, a 15 percent increase over the prior year's fourth quarter sales of $3.03
billion. Comparable store sales rose 10 percent. For fiscal year 2000, total sales for the Circuit City Group were $10.60
billion, a 13 percent increase from fiscal 1999 sales of $9.34 billion. Comparable store sales increased 8 percent for the year.
``February's comparable store sales growth greatly exceeded our expectations,' said Richard L. Sharp, Circuit City's chairman
and chief executive officer. ``The sales strength was again led by personal computers, but the pace of growth also increased
significantly in the consumer electronics categories.' Circuit City estimates that the additional day in February of this year
contributed approximately 3 percentage points to the month's comparable store sales increase.
Fourth quarter and fiscal year 2000 merchandise sales by category were as
follows:
Fourth Quarter Ended Fiscal Year Ended
2/29/00 2/28/99 2/29/00 2/28/99
Television 19% 20% 18% 18%
VCR/Camcorders 14 12 13 13
Audio 16 17 15 16
Home Office 30 28 29 27
Appliance 10 11 14 15
Other 11 12 11 11
Total 100% 100% 100% 100%
During February, Circuit City also continued its square footage growth, opening its third store in the Rochester, N.Y., market.
``Given the strong sales trends throughout the quarter, we expect that the earnings per share from our Circuit City business will
increase approximately 25 percent for the quarter to 79 cents from 63 cents in last year's fourth quarter,' Sharp said. ``These
results exceed the consensus analyst expectation of 77 cents per share for the Circuit City business. For the fiscal year, we
expect that earnings per share from our Circuit City business will increase approximately 37 percent to $1.60 from $1.17 last
fiscal year, again exceeding analysts' expectations.'
Circuit City Group earnings include the contribution from the Circuit City business and a retained interest in the CarMax Group,
which is discussed below. The company expects to release fiscal 2000 earnings for both Groups in early April.
In a separate release issued this morning, the company also announced its expansion and remodeling plans for the fiscal year
that began March 1, 2000. The company expects to open approximately 25 new Superstores, remodel 30 to 35 Superstores
in central and south Florida and in Richmond, Va., to focus solely on the consumer electronics and personal computer
categories and open in those markets a total of six to eight freestanding major appliance stores.
The remodeled Superstores will include the company's newest merchandising displays to demonstrate new technologies,
self-service areas for more traditional technologies and expanded selections of entertainment software, computer software and
peripherals, additional accessory products and full assortments of video game hardware and software and digital and 35mm
cameras. The freestanding appliance stores will include the wide selection of appliance brands currently available in Circuit City
Superstores as well as some higher end specialty brands, working kitchens for demonstrations, technology vignettes and kids'
play areas.
Sharp also announced that Carl C. Liebert III has joined the company as vice president of operations. ``Carl brings to this
position ten years of experience in training, sales, marketing and operations management. He joins Circuit City after eight years
with GE Appliances. We believe that Carl's background will help us to further develop the programs that support the
day-to-day operations of our nationwide store base,' said Sharp.
THE CARMAX GROUP: February Comparable Store Sales Increase 30 Percent
For the month of February, total sales for the CarMax Group were $187.6 million, a 51 percent increase from February 1999
sales of $123.9 million. Comparable store sales rose 30 percent. For the fourth quarter ended February 29, 2000, total sales
for the CarMax Group were $502.9 million, a 34 percent increase over the prior year's fourth quarter sales of $374.0 million.
Comparable store sales rose 12 percent. For the fiscal year that ended February 29, 2000, total sales for the CarMax Group
were $2.01 billion, a 37 percent increase over fiscal 1999 sales of $1.47 billion. Comparable store sales rose 2 percent.
``February's comparable store sales increase reflects strong growth in all markets, at virtually all our used-car locations and at
new-car franchises that are integrated into used-car superstores,' Sharp said. ``The sales represent a second consecutive
quarter of positive comparable store sales and built on a stronger trend that began in late December but was interrupted by
January's poor weather. The better comparable store sales pace was driven by our used-car business.' The company estimates
that the extra day in February of this year added approximately 3 percentage points to the comparable store sales growth.
For the fourth quarter and fiscal year 2000, sales by category were as follows:
Fourth Quarter Ended Fiscal Year Ended
2/29/00 2/28/99 2/29/00 2/28/99
Used 79% 86% 79% 90%
New 21% 14% 21% 10%
Total 100% 100% 100% 100%
During February, CarMax continued to roll out its hub/satellite operating strategy in existing markets. CarMax opened two
prototype satellite used-car stores, one in Houston and one in Dallas, during the month.
At the end of the month, CarMax also launched a redesigned version of its Web site, carmax.com©. The site now allows
consumers to view online all the detailed information available in the store for every car in CarMax's nationwide inventory. In
addition, consumers can see side-by-side comparisons of vehicles, view photographs of specific vehicles, compare CarMax
prices with Kelley Blue Book prices for used vehicles and MSRP and manufacturer's invoices for new cars and estimate their
monthly payments.
``When we entered fiscal year 2000, we anticipated that CarMax would bring its results from operations into the modest loss
to break-even range,' Sharp said. ``We have met our objectives throughout the year and believe that results from operations
for the fourth quarter and the year will exceed expectations.'
Circuit City is a leading national retailer of consumer electronics, personal computers, major appliances and entertainment
software. CarMax is the nation's leading specialty retailer of used cars and a rapidly growing new-car retailer. With
headquarters in Richmond, Va., Circuit City Stores, Inc. currently operates 571 Circuit City Superstores, 45 mall-based
Circuit City Express stores and 40 CarMax locations, including 34 used-car superstores and 20 new-car franchises. For more
information, go to the Circuit City Web site at www.circuitcity.com and to the CarMax Web site at www.carmax.com .
This release contains forward-looking statements, which are subject to risks and uncertainties, including, but not limited to, the
risks associated with the development of new business concepts. Additional discussion of factors that could cause actual results
to differ materially from management's projections, forecasts, estimates and expectations is contained in Circuit City Stores,
Inc.'s SEC filings. |
