Circuit City posts bigger loss in second quarter

September 30, 2008

RICHMOND, Va. Circuit City Stores Inc. posted a wider second-quarter loss and withdrew its fiscal 2009 outlook yesterday amid sluggish sales, poor traffic and heightened competition. Its shares fell nearly 9 percent as investors worried about the company's future. The nation's second-largest consumer electronics retailer - which replaced its chief executive officer last week - said it lost $239.2 million, or $1.45 per share, in the three months ended Aug. 31, compared with a loss of $62.8 million, or 38 cents per share, in the same quarter last year. Excluding $73 million of noncash asset impairment charges, the loss came to $162.7 million - better than earlier forecasts for a loss from continuing operations of between $170 million and $185 million. Sales declined 10 percent to $2.39 billion from $2.64 billion, with consolidated same-store sales falling 13.3 percent. Analysts polled by Thomson Reuters had expected a loss of $1.04 per share and $2.53 billion in sales.

Associated Press