Circuit City's Losses Widen
Circuit City's woes continue. Here's the Associated Press report on its earnings:
RICHMOND, Va. -- Electronics retailer Circuit City Stores Inc. on Friday reported a wider-than-expected loss for the third quarter, driven by lower extended warranty sales and restructuring costs.
Circuit City shares fell 21 percent to $5.30 in premarket trading, having closed Thursday at $6.66.
For the three months ended Nov. 30, losses ballooned to $207.3 million, or $1.26 per share, from $20.4 million, or 12 cents per share, a year ago. Excluding tax-related accounting items, losses totaled 64 cents per share in the latest period.
Sales slipped 3 percent to $2.96 billion from $3.06 billion a year earlier, with sales at stores open at least a year falling 5.6 percent.
The results missed consensus estimates of analysts polled by Thomson Financial, who predicted a loss of 31 cents per share on revenue of $3 billion.
"We are very dissatisfied with our third-quarter results," said Philip J. Schoonover, chairman, president and chief executive, in a statement. Schoonover said he believes the issues are "primarily self-induced" and within the company's control to improve.
Looking ahead, the company said that assuming current sales and margin trends continue for the rest of the fourth quarter, it will report a "modest" pretax loss from continuing operations for the quarter.
Here's the full press release on their earnings report.
December 21, 2007; 8:19 AM ET
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