Rebounding from the costly failure of its digital video rental business, Circuit City Stores Inc. said its net income more than doubled in its most recent quarter, on rising sales of consumer electronics and automobiles.
The Richmond retailer earned $74.5 million (36 cents a share) in the quarter ended Aug. 31. That compared with earnings of $31.5 million (16 cents) in the year-earlier period.
The 1998 quarter included after-tax losses of $11.6 million from the company's Digital Video Express business.
Sales in the second quarter climbed 17 percent, to $3 billion from $2.5 billion. Same-store sales--an industry barometer measuring revenue at stores open more than a year--climbed 10 percent for the period.
For the first half of the year, Circuit City reported a loss of $13.7 million, which includes a first-quarter loss of $88.2 million mostly from the defunct "Divx" business. That compares with net income of $44 million in the year-ago half. Sales rose 18 percent, to $5.6 billion from $4.8 billion, for the first six months of the year.
Circuit City operates about 600 stores and 37 CarMax new- and used-car dealerships.
Shares on the New York Stock Exchange were up $1.06 1/4 at $38.62 1/2.