Analysts: Hard Times Ahead at Circuit City
Following Circuit City’s announcement last week of a catastrophic quarter, analysts are now predicting that things will be tough for the retail chain for several years.
According to analysts from Goldman Sachs and Deutsche Bank quoted by Forbes this week, the chain is looking at several years of hard times, largely because of its current strategy of assuming more debt and continuing to open new stores. Another analyst criticized Circuit City for the poor layout of its older stores, as well as the stores’ locations.
On Dec. 21, Circuit City reported that it had lost $207 million in the third quarter, a tenfold increase over its loss the same time last year and a considerably worse loss than had been expected. CEO Philip J. Schoonover said he was “very dissatisfied” with the results.