"The International Segment accounted for virtually allof the sales growth," says CFO Michael Foss, referringto Circuit City's recent acquisition of InterTAN Inc."The segment had total sales growth of 15% over lastyear… and comp stores sales increases of 5.1%."
Total sales for the fourth quarter increased 5.3% to$3.5 billion from $3.3 billion for the fourth quarterlast year. Comparable store sales decreased 1.8%.Total sales for this year's fourth quarter includedomestic segment sales of $3.3 billion andinternational segment sales of $173.5 million.
The international segment also impacted the retailer'snet earning, increasing the fiscal 2005 fourth quarternet earnings from continuing operations by $10.5million, or 5 cents per share. Nonetheless, CircuitCity's net earnings for fiscal 2005 fourth quarterwere down from last year. Net earnings totaled $82.5million, or 43 cents per share, compared with netearnings of $94.7 million, or 46 cents per share, forthe fourth quarter fiscal 2004. During that period,Circuit City closed 19 stores and five regionaloffices, resulting in expenses of $47.4 million.
Looking forward to fiscal year 2005, Circuit City saysits expects to post total sales growth of 3% to 6%.The sales growth will be driven by the internationalsegment. "We had too much volatility in comp storesales in 2005," says W. Alan McCollough, chairman andCEO of Circuit City. "We need to deliver moreconsistent, positive results in fiscal 2006."
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