- 2014 Retail Store of the Year: And the winners are …
- MasterCard: In-store Black Friday shopping to rise over last year
- How Technology Has Revolutionized Sales Tax Management
- Call for Entries: Chain Store Age’s Retail Store of the Year Design Competition
- How to Build Loyalty and Sales this Holiday Season and Beyond
Atlanta, Circuit City Stores reported a wider-than-expected second-quarter loss on Thursday, as sales sagged for desktop computers, projection and tube TVs.
The retailer, which is cutting jobs and changing store procedures in a bid to turn business around, said it expected a loss from continuing operations for the third quarter and full year, but forecast a profit for the fourth quarter that includes the Christmas holiday.
The loss came to $62.8 million for the second quarter that ended Aug. 31, compared with a profit of $10 million a year earlier. Sales fell 6.2% to $2.64 billion, while same-store sales fell 7.9%.
In the United States, same-store sales fell 8%. Circuit City said U.S. Web and other direct-channel sales rose 20%, while computer-service and home-theater installation revenue rose 22%.
Company officials still plan to open 60 to 65 new and relocated U.S. superstores in fiscal 2008, and two-thirds of the openings will be 20,000-sq.-ft. stores. The results came two days after larger rival Best Buy reported an 8.7% profit increase on revenue of $8.75 billion, beating analysts’ expectations. Best Buy also offered a bullish forecast for the rest of the fiscal year.