Circuit City Expects to See Loss

Circuit City Stores Inc. said Tuesday that it will have a loss this quarter as consumers trim spending on more-profitable items including satellite television systems. Shares of the No. 2 U.S. electronics retailer fell 13%.

The company expects a third-quarter loss of 5 cents to 8 cents a share, excluding store-remodeling costs, in the quarter ending Nov. 30, rather than an unspecified small profit, spokeswoman Celeste Gunter said. Circuit City also withdrew its fourth-quarter forecast. Shares of Best Buy Co. and RadioShack Corp. declined.

Profit margins are being hurt as sales of cellular phones costing as much as $250 slow and fewer people sign up for $32-a-month satellite-TV dish plans, Circuit City said. Chief Executive Alan McCollough is remodeling stores and has replaced appliances with more compact discs and video- game software to lure customers from No. 1 Best Buy.

Shares of Richmond, Va.-based Circuit City fell $1.35 to $8.85 on the New York Stock Exchange.

Circuit City, which has more than 600 stores, said it withdrew its profit forecast for the fourth quarter because of a slowdown in consumer spending.