CD Warehouse Shares Rock
CD Warehouse Inc. shares soared almost 27 percent Friday after the music retailer unveiled its interactive Web site, which will sell new and used compact discs.
The retailer (CDWI) saw shares rise 4 15/16 to 23 5/16 after Chief Executive Jerry Grizzle said in a statement that the launch is "just the first phase of [its] planned online music community."
"CD Warehouse will add several enhancements to the Web site over the next several months," Grizzle said. "The Internet becomes a logical extension of our core business."Visitors to the CD Warehouse site can search for new releases and used compact discs in all music categories. The site also features a chat room and message board for music fans and a "living" listing of new releases and upcoming events, shows and concerts.
CD Warehouse, which owns a chain of 317 retail outlets, said its inventory of used recordings is one of the largest in the United States.
In November, the company reported third-quarter profits of $231,700, a 96 percent jump from the year-earlier quarter, on sales of $13.7 million, a 46 percent increase. Earnings per share, however, were flat year-over-year, as the number of shares outstanding doubled.
CD Warehouse had acquired the franchise rights to 134 Disc Go Round stores and bought the assets of three Disc Go Round stores operated by its parent company in June.
Written By Lisa J Ulmer