Friday, June 17, 2005
Best Buy continues to outpace Circuit City
On Tuesday, Best Buy said its first-quarter profits rose an unexpected 85 percent as sales of high-end televisions and digital music players soared.
...Circuit City, based in Richmond, said its larger-than-anticipated loss in the first quarter was mostly tied to $11.9 million in pretax costs related to its battle with RadioShack in Canada.
...Shares of the Minneapolis-based retailer soared after it said its quarterly profit rose to $170 million, or 51 cents per share, from $92 million, or 28 cents a share, in the year-ago period.
...The larger retailer benefited from stronger-than-anticipated profit margins and revenue, as well as a new initiative in which stores target specific customer groups like small-business owners or suburban homemakers.
...The high-end TV category will become increasingly lucrative for retailers as consumers drawn by more affordable prices begin replacing their old sets, said analyst Stephen Baker of the research firm NPD Group.
SignOnSanDiego.com 6/17/05
...Circuit City, based in Richmond, said its larger-than-anticipated loss in the first quarter was mostly tied to $11.9 million in pretax costs related to its battle with RadioShack in Canada.
...Shares of the Minneapolis-based retailer soared after it said its quarterly profit rose to $170 million, or 51 cents per share, from $92 million, or 28 cents a share, in the year-ago period.
...The larger retailer benefited from stronger-than-anticipated profit margins and revenue, as well as a new initiative in which stores target specific customer groups like small-business owners or suburban homemakers.
...The high-end TV category will become increasingly lucrative for retailers as consumers drawn by more affordable prices begin replacing their old sets, said analyst Stephen Baker of the research firm NPD Group.
SignOnSanDiego.com 6/17/05
Thursday, June 16, 2005
Circuit City's The Source Rolling Out in Canada
A new specialty electronics store is overtaking malls in Canada as The Source by Circuit City replaces nearly 900 former RadioShack locations across the country, according to a report in The Edmonton Journal.
But RadioShack's U.S. parent company then revoked the brand's Canadian licensing rights from its U.S. competitor. A legal battle ensued, and earlier this spring, a Texas court ruled that Canadian stores must drop the RadioShack name by the end of June.
...There are also billboards and transit boards depicting the new name, along with associated advertising flyers, newspaper ads, and a television and radio campaign, according to the Edmonton Journal report.
...Name-brand product lines will be expanded, and RadioShack-branded merchandise will be replaced by Circuit City's private label brand.
Retail Merchandiser 6-16-05
But RadioShack's U.S. parent company then revoked the brand's Canadian licensing rights from its U.S. competitor. A legal battle ensued, and earlier this spring, a Texas court ruled that Canadian stores must drop the RadioShack name by the end of June.
...There are also billboards and transit boards depicting the new name, along with associated advertising flyers, newspaper ads, and a television and radio campaign, according to the Edmonton Journal report.
...Name-brand product lines will be expanded, and RadioShack-branded merchandise will be replaced by Circuit City's private label brand.
Retail Merchandiser 6-16-05
Analysts sees expansion in Wal-Mart/Apple pact
A Morgan Stanley analyst is suggesting that Apple's pact with retail giant Wal-Mart is set to expand soon.
"We think the partnership is broader than people think, in transition and set to expand in the nhttp://www.blogger.com/img/gl.link.gifear-term," wrote analyst Rebecca Runkle in a note to clients, reports E-Commerce Times.
She estimates that sales of iPods at Wal-Mart locations could boost Apple's iPod sales by 100,000 units and add $20 million in revenue each quarter. ...
MacWorld UK 6-16-05
"We think the partnership is broader than people think, in transition and set to expand in the nhttp://www.blogger.com/img/gl.link.gifear-term," wrote analyst Rebecca Runkle in a note to clients, reports E-Commerce Times.
She estimates that sales of iPods at Wal-Mart locations could boost Apple's iPod sales by 100,000 units and add $20 million in revenue each quarter. ...
MacWorld UK 6-16-05
Wednesday, June 15, 2005
Best Buy profit soars 85 pct; shrs hit record high
#1 U.S. electronics chain, on Tuesday reported an 85 percent jump in quarterly profit, on strong sales of MP3 music players, digital TVs and video games and fewer markdowns, and its shares jumped 15 percent to a record high....
#2 player Circuit City Stores Inc., but stock in the much smaller rival rose 4 percent on hopes it would also post better-than-expected results on Friday. Best Buy's profit increased to $170 million, or 51 cents a share, for the fiscal first quarter ended May 28, compared with $92 million, or 28 cents a share, a year earlier.
...The higher margins, Best Buy said, reflected less promotional spending, speedier introduction of new products, improved vendor pricing and global sourcing, and increased sales of private label products like "Geek Squad"-branded PC networking accessories. In addition, Best Buy said stores tailored to cater to specific customer needs, showcasing popular items like flat-panel TVs, delivered same-store sales growth twice that of its other stores.
...Best Buy said it continues to expect revenue for the fiscal year of about $30 billion, and growth in sales at stores open at least 14 months of 4 to 5 percent.
Reuters 6/15/05
#2 player Circuit City Stores Inc., but stock in the much smaller rival rose 4 percent on hopes it would also post better-than-expected results on Friday. Best Buy's profit increased to $170 million, or 51 cents a share, for the fiscal first quarter ended May 28, compared with $92 million, or 28 cents a share, a year earlier.
...The higher margins, Best Buy said, reflected less promotional spending, speedier introduction of new products, improved vendor pricing and global sourcing, and increased sales of private label products like "Geek Squad"-branded PC networking accessories. In addition, Best Buy said stores tailored to cater to specific customer needs, showcasing popular items like flat-panel TVs, delivered same-store sales growth twice that of its other stores.
...Best Buy said it continues to expect revenue for the fiscal year of about $30 billion, and growth in sales at stores open at least 14 months of 4 to 5 percent.
Reuters 6/15/05
Sprint gets Sirius about music
Sirius Satellite Radio announced on Tuesday it signed a deal with Sprint to offer music to its cellular phone customers, marking the latest effort to turn the phone into an all-in-one communications and entertainment device.
Sirius will distribute its music content nationwide over Sprint's cellular network, rather than as a satellite feed, said Jim Collins, a Sirius spokesman. Sprint is currently evaluating which music formats it will carry and what the service will cost its PCS Vision customers. The service is expected to be available later next year.
Terms of the deal were not disclosed.
Sirius will be available to Sprint customers who have signed up for its $15-a-month PCS Vision, an Internet service that uses Sprint's higher-speed wireless network. ...
CNET's News.com 6/14/05
Sirius will distribute its music content nationwide over Sprint's cellular network, rather than as a satellite feed, said Jim Collins, a Sirius spokesman. Sprint is currently evaluating which music formats it will carry and what the service will cost its PCS Vision customers. The service is expected to be available later next year.
Terms of the deal were not disclosed.
Sirius will be available to Sprint customers who have signed up for its $15-a-month PCS Vision, an Internet service that uses Sprint's higher-speed wireless network. ...
CNET's News.com 6/14/05
