On June 20, Circuit City Stores
- While comps rose in the double digits for notebook computers, it wasn't enough to offset the declines in most of the other product categories. Overall, comparable sales declined 5.6%.
- Pricing issues in the flat-panel TV category largely contributed to the $0.33-per-share loss.
- Margins dipped across the board, because of the decline in warranty sales and a sales mix that shifted toward lower-margin PC hardware.
- Because of expected volatility during its restructuring process, management withdrew its fiscal guidance for 2008.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q1 2008 |
Q1 2007 |
Change |
|
|---|---|---|---|
|
Sales |
$2,485.5 |
$2,596.6 |
(4.3%) |
|
Net Profit |
($54.6) |
$6.4 |
N/A |
|
EPS |
($0.33) |
$0.04 |
N/A |
|
Diluted Shares |
165.8 |
176.3 |
(5.9%) |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2008 |
Q1 2007 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
22.5% |
24.5% |
(1.9) |
|
Operating Margin |
(3.6%) |
0.1% |
(3.6) |
|
Net Margin |
(2.2%) |
0.3% |
(2.5) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2008 |
Q1 2007 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$364.1 |
$634.3 |
(42.6%) |
|
Accounts Rec. |
$342.2 |
$211.6 |
61.8% |
|
Inventory |
$1,745.9 |
$1,931.4 |
(9.6%) |
|
Liabilities |
Q1 2008 |
Q1 2007 |
Change |
|---|---|---|---|
|
Accounts Payable |
$923.0 |
$995.6 |
(7.3%) |
|
Long-Term Debt |
$49 |
$50 |
(2.1%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
You can't watch TV without a remote, and you can't do your due diligence without a cash flow statement.
Related Foolishness:
- Circuit City Tunes Up Again
- Before the Call: Bears Roam Circuit City
- Circuit City Cuts Costs, Corners
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