Circuit City Reports Third-Quarter Loss

Circuit City Group reported a fiscal third-quarter loss of $64.4 million, or 32 cents a share, versus profit of $52.3 million, or 26 cents, a year ago, in line with reduced expectations. The company said steeper-than-expected price markdowns, remodeling costs and sales disruptions as a result of its remodeling plan contributed to the loss. Sales fell 6.8% to $2.33 billion, and sales at stores open at least a year dropped 10%. Earlier this month, Circuit City warned its loss would be about four times wider than the 8-cent loss then forecast by analysts. Analysts’ average estimate was then cut to 33 cents, according to First Call/Thomson Financial. The company has warned four times that earnings or profit margins would be lower than forecasted after it decided in July to exit the appliance business. Circuit City’s electronics stores lost 34 cents in the quarter. The company’s 75% stake in auto retailer CarMax Group contributed 2 cents to earnings. Circuit City shares were unchanged at $10.38 on the NYSE.