CompUSA issues profit warning as sales slow
Article Abstract:
CompUSA's sales growth slowed in the first three months of 1998, and the company cautions that profits will be less than expected. The company says margins are thin because costs are up while PC prices are continuing to decline. On Apr 1, when the news was released, the company's stock dropped 20%, or $5.25, to $20.875 a share. Earnings are down by three to four cents a share for the company's fiscal 3rd qtr, ended Mar 28. Sales for the period increased 14% to $1.45 billion, from $1.27 billion in the same period in 1997. Meanwhile, at 122 CompUSA stores that have been open at least a year, sales were up only 1.2%. Sales at those same stores increased 5.6% a year earlier, and 8% in the last three months of 1997.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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CompUSA Inc. to buy Tandy's Computer City
Article Abstract:
Tandy Corp.'s Computer City chain will be acquired by rival CompUSA Inc. for $275 million in an era when falling prices and mail-order PC business are creating problems for US computer retailers. Tandy, which had been trying since July 1997 to spin off its Computer City chain, still will retain its 6,900 store Radio Shack chain. The new CompUSA/Computer City chain, which will have 260 stores nationwide, although some stores will be closed, is now in a better position to compete with rivals Dell Computer Corp. and Gateway Inc. The deal comes just before a normal seasonal slump in PC sales and the anticipated arrival of Microsoft Corp.'s Windows 98.
Comment:
Buys Tandy Corp.'s Computer City chain for $275 million
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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CompUSA net falls 54% on price cuts on computers in wake of acquisition
Article Abstract:
CompUSA stores barely eked out some profit when all the figures were combined with Computer City outlets that were acquired last year. Fiscal second quarter profits fell 54%. CompUSA cut prices for all stores in an effort to make the 39 Computer City stores it kept open perform better. The firm said its Internet sales unit is making gains and the company plans to invest in that area to promote even more growth.
Comment:
Introduction of new products is hoped to improve profits
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1999
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