Circuit City Reports Small Profit, But Sales Down
Circuit City on Wednesday reported its first quarterly profit in six quarters, swinging to a profit of $4.9 million in Q4, compared with a loss of $4.3 million the same period the year before. Net sales, however, decreased 7.7 percent, to $3.65 billion.
“We are currently facing the toughest macroeconomic environment in years, but, despite the headwinds of the economy, we have stopped the declining trends in close rate, services attachments and warranty units,” the company’s CEO, Philip Schoonover, said as part of the earnings announcement. “For most of the operating metrics, the trends are still below prior year, but the gap is narrowing.”
In the earnings report, the company did not address the ongoing proxy fight it is having with activist investor Mark J. Wattles of Wattles Capital Management. A conference call is scheduled for later Wednesday morning.