Circuit City Reports $207 Million Loss For Quarter
Circuit City took a big stumble in the third quarter, recording a loss of more than $200 million for the three months that ended Nov. 30. The loss represented a tenfold increase over the $20.4 million loss incurred by the company for the same period a year earlier.
The loss was mostly attributed to weak sales, restructuring costs, and less success than expected from its recent restructuring. The loss of $207.3 million was much steeper than analysts had expected.
“We are very dissatisfied with our third quarter results,” CEO Philip J. Schoonover said as part of the release. “We underestimated the financial impact from the disruption of our transformation work, which contributed to lower close rates, reduced attachments of higher margin accessories and firedog(SM) services and lower extended warranty net sales as compared with the prior year. As a result, we are reporting lower sales and higher net losses in the quarter than last year’s third quarter.”