Circuit City Sees Loss of as Much as $90 Million (Update1) By Mark Clothier http://www.bloomberg.com/apps/news?pid=20601087&sid=abTuJUM34qcc&refer=home April 30 (Bloomberg) -- Circuit City Stores Inc., the second-largest U.S. electronics retailer, said it expects to post a first-quarter loss of as much as $90 million before taxes as rivals cut prices on flat-panel television sets. Sales were ``substantially below-plan'' this month, the company said today in a statement. Circuit City, based in Richmond, Virginia, withdrew its forecast for a ``strong recovery'' in the second half of the year. The company also withdrew its earlier forecast for a pretax loss of as much as $50 million for the six months through August. Circuit City reported its third quarterly loss in the past two years in April after it cut TV prices to woo shoppers. Circuit City and Best Buy Co. were forced to slash prices during the holiday season after Wal-Mart Stores Inc. and Costco Wholesale Corp. began selling discounted flat-panel TVs. Circuit City fired 3,400 workers, about 8 percent of its workforce, and replaced them with staff at lower wages. Shares of Circuit City fell 8.3 percent to 16 at 5:11 p.m. in trading after the close of U.S. markets. The shares have dropped 8.1 percent this year.
Circuit City is done for. That current genius plan of replacing already low morale workforce with lower paid labor will be the end of it. A bit sad, it's not like the company does not have potential.
I agree, but both have crappy service. Circuit City, whew, the byatch wouldn't even walk over to point to where the KVM switch was. I had never seen one. She just sat their chatting with her co workers and pointed in the general direction. I just walked out and went to Compustore. When I asked the lady at Best Buy if they sold a dual wan router she pointed me to a single wan router with a 4 port hub! I said no and here's why, not that I am an expert by any means.
In after Hours, it looks as though they punished it pretty badly. My question is how much lower will it go despite these poor earnings. $15.00? " Shares of Circuit City fell to $15.90 at 6:23 p.m. in trading after the close of U.S. markets. Best Buy shed 1 percent. Circuit City's stock fell 48 cents to $17.45 in New York Stock Exchange composite trading before the announcement. " Bloomberg 12.00? 9.00? 6.00? March 3, 2003 $4.48 Just curious what you all think or believe. Conviction...Excellent article, nice setup at the close of today.
I posted this in case you guys didn't catch it. I initially thought it might make for a good short entry. Now I'm thinking just the opposite.