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Non-Tech : CompUSA (CPU) -- Ignore unavailable to you. Want to Upgrade?

To: Scotsman who wrote (939)	1/4/1999 5:43:00 PM
From: rhet0ric	Respond to of 3187

From: biz.yahoo.com Company Press Release SOURCE: CompUSA Inc. CompUSA Inc. Reports Record Sales for the Second Quarter of Fiscal 1999 DALLAS, Jan. 4 /PRNewswire/ -- CompUSA Inc. (NYSE: CPU - news), America's Largest Computer Superstore® retailer, today announced record sales for the second quarter of fiscal 1999, ended December 26, 1998. Net sales for the second quarter increased 22% to $1.78 billion from $1.46 billion for the comparable period ended December 27, 1997. Comparable store sales decreased by 4.7% in the second quarter of fiscal 1999 for the 148 stores open one year or more. Sales from 37 converted Computer City stores that CompUSA is continuing to operate are included in the second quarter net sales figure but not in the comparable store sales calculation. For the first six months of fiscal 1999, net sales increased by 20% to $3.17 billion from $2.65 billion for the first six months of fiscal 1998. Comparable store sales decreased by 3.3% for the first six 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 the second quarter are included in the six months' net sales figure but not in the comparable store sales calculation. ''This was a challenging and unique quarter,'' said James F. Halpin, president and chief executive officer. ''Unit sales of desk-top PCs increased by 50% while average selling prices dropped by 20% compared to last year, and we completed our first full quarter of operations for the converted Computer City stores. As we completed the conversion, it became apparent that their operations were not where we had hoped they would be and that we needed to generate excitement in these stores. Because of this, we increased our promotional plans to re-ignite sales in the converted stores and introduce ourselves to new customers. These promotions proved to be even more successful than we planned. However, the success of these promotions resulted in lower-than-anticipated average selling prices and will negatively impact our planned gross margin for the quarter.'' Halpin continued, ''While the retail portion of our business receives most of the focus during the second quarter, several of our other businesses had major successes. CompUSA Direct, which includes our Internet and mail order businesses, was a bright spot for the quarter. Sales for the quarter were approximately $83 million, up 48% over last year, with the sales increase accelerating through the quarter. CompUSA PC was another highlight. In November we started the assembly of built-to-order personal computers at our Fossil Creek facility and shipped approximately 11,000 units in December.'' The Company plans to announce operating results for the second quarter on February 3, 1999, after the market closes. The Company noted that it currently expects its gross margin percentage for the second quarter of fiscal 1999 to be approximately 75-100 basis points lower than the gross margin percentage achieved the first quarter of fiscal 1999. Additionally, the Company expects comparable store sales to improve in the third quarter as compared to the second quarter as it begins to cycle the large decrease in average selling prices from last year. The Company also noted that due to the expected lower promotional activities in the third quarter, gross margins are expected to improve compared to the second quarter. CompUSA Inc. is one of the nation's leading retailers and resellers of personal computers and related products and services. The Company currently operates 210 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™, and operates an Internet site located at www.compusa.com where customers can shop for over 50,000 items on-line. Certain matters discussed in this news release are forward-looking statements involving certain 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 detailed in the Company's Securities and Exchange Commission filings and reports. SOURCE: CompUSA Inc.