CPU News!!
Wednesday March 31, 4:32 pm Eastern Time
Company Press Release
SOURCE: CompUSA Inc.
CompUSA Inc. Reports Net Sales Up 16%
DALLAS, March 31 /PRNewswire/ -- CompUSA Inc. (NYSE: CPU - news), America's Largest Computer Superstore®retailer, today announced record sales for the third quarter of fiscal 1999, ended March 27, 1999. Net sales for the third quarter increased 16% to $1.69 billionfrom $1.45 billion for the comparable period ended March 28, 1998. Comparable store sales decreased by 7.2% in the third quarter of fiscal 1999 for the 148stores open one year or more. Sales from 37 converted Computer City stores that CompUSA is continuing to operate are included in the third quarter net salesfigure but not in the comparable store sales calculation.
For the first nine months of fiscal 1999, net sales increased by 19% to $4.86 billion from $4.10 billion for the first nine months of fiscal 1998. Comparable store sales decreased by 4.7% for the first nine months of fiscal 1999 for the 148 stores open one year or more. Sales from the converted Computer City stores for the month of September and for the six months ended March 27, 1999 are included in the nine months' net sales figure but not in the comparable store sales calculation.
Technical Services sales and Training sales for the third quarter were $35.9 million and $30.4 million, respectively, which represent 27% and 24% increases,respectively, from the comparable period a year ago. Third quarter sales of CompUSA Net.com Inc., the Company's recently announced Internet and mail order subsidiary, increased 18% to $68.2 million as compared to the same period a year ago. While mail order sales are currently the largest component of CompUSA Net.com's business, total Internet sales for the third quarter increased in excess of 100% from the comparable period a year ago.
Compared to the third quarter of fiscal 1998, unit sales of desktop and notebook computers increased approximately 20% and 55%, respectively, while average selling prices for each category decreased approximately 15%. Compared to the second quarter of fiscal 1999, average selling prices of notebook computers declined approximately 3% while average selling prices of desktop computers were approximately flat.
As a percentage of average sales per store for the existing CompUSA Computer Superstores(SM), average sales per store for the converted Computer City stores improved to approximately 60% in the third quarter of fiscal 1999, compared to approximately 50% in the second quarter of fiscal 1999.
The Company plans to announce operating results for the third quarter on May 5, 1999, after the market closes.
CompUSA Inc. is one of the nation's leading retailers and resellers of personal computers and related products and services. The Company currently operates 209 CompUSA Computer Superstores in 79 major metropolitan markets across the United States that serve retail, corporate, government and education customers and include technical service departments and classroom training facilities. CompUSA also offers its own build-to-order personal computer series, the CompUSA
PC(TM), and operates an Internet site at www.compusa.com where the public can obtain information regarding the Company.
This news release contains forward-looking statements about the business, financial condition, and prospects of the Company. The actual results of the Company could differ materially from those indicated by the forward-looking statements because of various risks and uncertainties, including without limitation, changes in
product demand, the availability of products, changes in competition, economic conditions, various inventory risks due to changes in market conditions and other risks indicated in the Company's Securities and Exchange Commission filings and reports. The Company's focus on its Internet business through its CompUSA Net.com subsidiary involves significant additional risks, including without limitation, failure to achieve customer acceptance and potential significant capital
investments which may be required to be made by the Company. All of the foregoing risks and uncertainties are beyond the ability of the Company to control, and in many cases, the Company cannot predict the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. When used in this news release, the words ''believes,'' ''anticipates,'' ''expects'' and similar expressions as they relate to the Company or its management are intended to identify forward-looking statements.
SOURCE: CompUSA Inc. |
