Logo

Circuit City 2Q Loss Widens as TV Sales Fall

Sep 29, 2008  •  Post A Comment

Circuit City said today that a decline in cathode-ray tube and projection television sales more than offset a small increase in flat-panel TV revenue, causing U.S. comparable video department sales to drop almost 10% in the fiscal second quarter. The No. 2 U.S. electronics retailer, which said its loss for the quarter almost quadrupled from a year earlier, also said today that it withdrew its fiscal 2009 financial projections.
Circuit City’s same-store flat-panel TV sales for the quarter ended Aug. 31 rose less than 5%, far less than the 22% growth in liquid-crystal display and plasma TV sales projected in North America this year by NPD Group unit DisplaySearch earlier this month. Circuit City’s video sales were further hindered by a drop in DVD player sales of more than 10%.
Overall, the company’s net loss widened to $239.2 million, or $1.45 a share, from a loss of $62.8 million, or 38 cents, a year earlier. Revenue fell 9.6% to $2.39 billion, with comparable-store revenue dropping 13%.
The company’s same-store sales were a “mess,” wrote Pali Research analyst Stacy Widlitz in a note to clients today. “We are also concerned free financing promotions that drive TV sales will be harder to come by.”
Circuit City said it would try to spark holiday-season sales with actions such as improving inventory on advertised products and improving in-store signage.
Last week, Circuit City replaced Chief Executive Officer Philip Schoonover with board member, ex-Hollywood Entertainment executive and acting CEO James Marcum in an effort to improve its turnaround efforts. In July, U.S. movie-rental chain leader Blockbuster dropped its 4-month-old bid worth as much as $1.32 billion to buy Circuit City, which in May hired Goldman Sachs to explore strategic alternatives.
While Marcum said market conditions force the company to direct its efforts away from strategic alternatives toward operations, “Frankly, all options are on the table,” he said.
Earlier this month, U.S. electronics retailer Best Buy said a jump in flat-panel TV sales of more than 10% wasn’t enough to offset an increase in sales of lower-margin items like videogames and notebook computers as second-quarter earnings fell 19%.
Circuit City shares plunged about 25% today.

17 Comments

  1. THE ONLY COMPLAINT I HAVE HAD WITH CIRCUIT CITY HAS BEEN THE COMPLETE IGNORING OF SENIOR CITIZENS.
    NUMEROUS TIMES I HAVE SHOPPED CIRCUIT CITY AND TO
    BE IGNORED FOR I BELIEVE TO HAVE BEEN BECAUSE OF
    MY AGE.
    I HAVE PURCHACED TV’S, TELEPHONES, GPS, DESK TOP
    COMPUTERS AND LAPTOP COMPUTERS AND EVEN SIGNED UP FOR VERIZON AT CIRCUIT CITY.
    ON EACH OCCASSION IT WAS ALWAYS THAT I HAD TO GET
    THE ATTENTION OF SALES PERSONNEL
    I REGRET CIRCUIT CITY IS CLOSING BECAUSE OF THE SELECTION OF MERCHANDISE.

  2. I am inventing a flashlight with biometric recognition. any healp regarding the needed electronics circuit components?

  3. I’ll gear this review to 2 types of people: current Zune owners who are considering an upgrade, and people trying to decide between a Zune and an iPod. (There are other players worth considering out there, like the Sony Walkman X, but I hope this gives you enough info to make an informed decision of the Zune vs players other than the iPod line as well.)

  4. Great wordpress blog here.. It’s hard to find quality writing like yours these days. I really appreciate people like you! take care and see you soon

  5. Great blog!! You should start many more. I love all the info provided. I will stay tuned 🙂

  6. Wow, amazing blog layout! How long have you been blogging for? you make blogging look easy.

  7. Nice Movie, I’m really loving this Movie, actors and actris for this movie, as well as the excellent trailers.

  8. This is good info! Where else can if ind out more?? Who runs this joint too? Keep up the good work 🙂

  9. Love all the opinions expressed here! How is everyone? Love how everyone expresses whatr they feel 🙂

  10. This is good info! Where else can if ind out more?? Who runs this joint too? Keep up the good work 🙂

  11. Amazing freakin blog here. I almost cried while reading it!

  12. Nice!! Great Ifo. Great People. Great Blog. Thank you for all the great sharing that is being done here.

  13. Nice!! Great Ifo. Great People. Great Blog. Thank you for all the great sharing that is being done here.

  14. Neat blog layout! Very easy on the eyes.. i like the colors you picked out

  15. I would like to start my own blog one day. This was a really nice blog that you made here. Keep up the success 😛

Leave a Reply to Buy Backlinks Cancel Reply

Email (will not be published)