Chief
12-21-2007, 09:37 AM
http://biz.yahoo.com/ap/071221/earns_circuit_city.html
Friday December 21, 12:00 pm ET
By Michael Felberbaum, Associated Press Writer
Circuit City Posts Wider-Than-Expected 3rd-Quarter Loss, Shares Tumble
RICHMOND, Va. (AP) -- Shares of electronics retailer Circuit City Stores Inc. lost nearly a quarter of their value Friday morning as investors reacted to a wider-than-expected loss driven by lower extended warranty sales and business interruptions the company blamed on ongoing restructuring efforts.
"Clearly we are very disappointed," Chief Executive Philip Schoonover told Wall Street analysts during a conference call. Schoonover said the company underestimated the financial impact of cost-saving initiatives on sales. "Our current focus is to rebuild our selling culture," he said.
The results came three days after larger rival Best Buy Co. reported its third-quarter profit jumped 52 percent, ahead of analyst expectations for the Richfield, Minn., retailer.
No real surprizes here, the only question remaining is whether CC can ever recover from this...
Friday December 21, 12:00 pm ET
By Michael Felberbaum, Associated Press Writer
Circuit City Posts Wider-Than-Expected 3rd-Quarter Loss, Shares Tumble
RICHMOND, Va. (AP) -- Shares of electronics retailer Circuit City Stores Inc. lost nearly a quarter of their value Friday morning as investors reacted to a wider-than-expected loss driven by lower extended warranty sales and business interruptions the company blamed on ongoing restructuring efforts.
"Clearly we are very disappointed," Chief Executive Philip Schoonover told Wall Street analysts during a conference call. Schoonover said the company underestimated the financial impact of cost-saving initiatives on sales. "Our current focus is to rebuild our selling culture," he said.
The results came three days after larger rival Best Buy Co. reported its third-quarter profit jumped 52 percent, ahead of analyst expectations for the Richfield, Minn., retailer.
No real surprizes here, the only question remaining is whether CC can ever recover from this...