Circuit City Strike Wall St. As Bad

Posted: April 4, 2007 at 7:23 am

Circuit City (CC) lost money last quarter. The company closed stores, and, at those open a year, sales were poor.

Revenue for the quarter ending Feb 28 were flat at $3.9 billion. Earnings from continuing operations dropped from $234 million in the quarter a year ago to $15 million in the most recent quarter. The net was negative due to restructuring costs.

On the bright side web sales grew 50% to $1 billion.

The company forecast a net sales increase of 5% to 8% for the next fiscal.

CC shares are already down about 4% this year. And, prior to the open, they are off 3.3% to $17.68, near the company’s 52-week low.

Douglas A. McIntyre

Read more: Retail
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