Circuit City posts loss in quarter

Electronics retailer Circuit City Stores Inc. said Wednesday that it lost $54.6 million in its fiscal first quarter, when it cut jobs to reduce costs and restructured to fend off competition. The company also withdrew its financial forecast for the year.

The results were released a day after larger rival Best Buy Co. reported sharply lower fiscal first-quarter profit and downgraded its earnings outlook for fiscal 2008. Both retailers said the softening economy was steering shoppers away from high-margin items such as flat-screen televisions.

For its quarter ended May 31, the nation’s No. 2 consumer electronics chain lost 33 cents a share, compared with a profit of $6.4 million, or 4 cents, a year earlier. Analysts surveyed by Thomson Financial had expected a per-share loss of 32 cents.

Sales during the period fell 4% to $2.49 billion from $2.6 billion. Sales at stores open at least a year slipped 5.6%.

Richmond, Va.-based Circuit City withdrew its financial guidance for fiscal 2008 because the company expects continued volatility as it restructures in an unfavorable economic environment.

The company’s shares rose 3 cents to $16.10.