This is one that I missed.

While I gave Circuit City (NYSE:CC) due credit for making progress with its turnaround back in September, I think I let myself get suckered by the widespread chatter about the risks that retailers were going to start seeing less consumer spending. Whether or not that basic thesis ultimately proves correct (predict a recession enough times and eventually you'll get one right), the stock of this No. 2 electronics retailer is still up about 50% from that point.

Put simply, the company's turnaround continues to go quite well. Sales in this quarter were up nearly 12.8%, as same-store sales trended up about 11.6%. And these aren't just empty sales -- gross margins improved a bit, and the company saw a robust jump in income from continuing operations.

Having looked at flat-panel maker LG.Philips (NYSE:LPL) earlier today, I'm again struck by the irony that electronics retailers like Best Buy (NYSE:BBY) and CircuitCity, and presumably others like Wal-Mart (NYSE:WMT), Costco (NASDAQ:COST), etc., as well, are making beaucoup bucks from the flat-panel TVs, while the panel makers themselves are having a harder slog of it. Guess it just goes to show -- if something is really good for consumers (in this case, falling TV prices), it's not always so good for the manufacturers.

Now, that's not to say I've completely reversed myself and am now a big Circuit City fan. However, I do think the market for high-tech TVs will be strong for a few more years to come, and I think the company's IQ Crew (similar to Best Buy's Geek Squad) could be a nice little source of profits.

But I'm still a little concerned about when this orgy of consumer spending might slow down. In some ways, it feels like we have a bit of a tug-of-war going on -- with the Federal Reserve on one end of the rope and consumers on the other. I'm also of the opinion that Best Buy is a better value here and now, but I thought that six months ago, too, and Circuit City was the better performer over that stretch.

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Fool contributor Stephen Simpson has no financial interest in any stocks mentioned (that means he's neither long nor short the shares).