CompUSA earnings higher
DALLAS (AP) _ Computer retailer CompUSA Inc. said Wednesday its profits rose more than 94 percent in the most recent quarter on stronger sales.
The Dallas-based chain said it earned $22.9 million, or 24 cents a share, in the fourth quarter of its fiscal year. Earnings for the fourth quarter a year ago, which was a week longer, were $11.8 million, or 13 cents a share.
Same-store sales, a key retail performance indicator, were up 9.7 percent in the quarter for the 102 stores open one year or more. Overall sales rose 15 percent to $1.15 billion from $999 million.
The results exceeded analysts’ expectations. Those surveyed by First Call Corp. predicted earnings of 20 cents a share and CompUSA stock was up 87 1/2 cents at $28.87 1/2 on the New York Stock Exchange.
Analyst Gene Ramirez with Southwest Securities Inc. in Dallas said the chain was benefiting from price cuts from chip makers like Intel, better inventory management and the demise of Tandy Corp.’s 17 Incredible Universe consumer electronics stores.
For the fiscal year ended June 28, earnings rose 57 percent to $93.9 million, or 99 cents per share. A year earlier the company earned $59.7 million, or 65 cents a share.
Same-store sales were up 5.9 percent for the year and overall revenue for the year rose 20 percent to $4.61 billion.
CompUSA shares rose $1.37 1/2 to $29.37 1/2, a rise of nearly 5 percent.