Circuit City stock plunges on grim losses report

[Pardus]

Full Article Here

NEW YORK (MarketWatch) -- Circuit City Stores Inc. on Friday saw its shares take their biggest plunge in five years after the company posted a wider-than-expected third-quarter loss from lower sales and price cuts on flat-panel televisions.

In a sign of continuing struggle and market share loss, the No. 2 U.S. electronics chain also said it may post an unexpected fourth-quarter loss. Fourth quarter is usually when many retailers, including electronics chains, reaped their biggest profit for the year.

Shares tumbled $1.91, or 29%, to $4.75, their biggest decline since February 2002.

Circuit City's net loss widened to $207.3 million, or $1.26 a share, from $20.4 million, or 12 cents a share, a year earlier. Sales in the quarter ended Nov. 30 fell to $2.94 billion from $3.06 billion, the Richmond, Va.-based company said.

Excluding a valuation allowance charge of 62 cents a share, Circuit City would have lost 64 cents. On that basis, analysts, on average, estimated a loss of 31 cents a share on sales of $3 billion, according to Thomson Financial.

Sales at stores open at least a year declined 5.6% after lower sales of traditional tube and projection televisions, camcorders and DVD players. The company's aggressive Black Friday promotions, while driving sales and traffic on the day after Thanksgiving, could not be an ongoing strategy, analysts said. Profit also was hurt by price cuts on flat-panel televisions and weakness in sales of its more profitable warranty services.

As part of its strategy to improve results, Circuit City said next year, it's opening as many as 60 The City, its new store concept, to help bolster demand and improve customer experience.

 

[Parasitic]

Soon enough CC will turn into another BB...

 

[Ronstang]

Circuit City is a waste of time. A visit or two is all an educated person needs to realize their business model is flawed. The only time I step foot in that awful place is when the sale is just too enticing, and I still wonder whether walking into the store is even worth the good deal. If they go out of business they have earned the right with every step they have taken.

 

[dds14u]

Originally posted by: Ronstang
Circuit City is a waste of time. A visit or two is all an educated person needs to realize their business model is flawed. The only time I step foot in that awful place is when the sale is just too enticing, and I still wonder whether walking into the store is even worth the good deal. If they go out of business they have earned the right with every step they have taken.

And there's a better B&M out there?

 

[Atrail]

Originally posted by: dds14u

Originally posted by: Ronstang
Circuit City is a waste of time. A visit or two is all an educated person needs to realize their business model is flawed. The only time I step foot in that awful place is when the sale is just too enticing, and I still wonder whether walking into the store is even worth the good deal. If they go out of business they have earned the right with every step they have taken.

And there's a better B&M out there?

I think the ones that are not going out of business, by default, are better...

 

[Fritzo]

I hate Circuit City anyway. Their stores are frustrating...I can never find anyone to take my money when I pick something out. That stupid "kiosk" sales desk system they have fails.

 

[AdamK47]

When Circuit City is gone how am I supposed to get my $100 monster cables?

 

[ShockwaveVT]

Originally posted by: AdamK47
When Circuit City is gone how am I supposed to get my $100 monster cables?

Go across the street to Best Buy, where they cost $105

 

[pyonir]

Profit also was hurt by price cuts on flat-panel televisions and weakness in sales of its more profitable warranty services.

Are consumers starting to realize most warranty services offered by the stores are generally worthless? Finally? Or could it be that since CC sales people don't make commission on their sales, that they don't push as hard and sell as many? *shrug* found that part to be the most interesting part anyway.

 

[blurredvision]

Originally posted by: ShockwaveVT

Originally posted by: AdamK47
When Circuit City is gone how am I supposed to get my $100 monster cables?

Go across the street to Best Buy, where they cost $105

LOL. Now that was funny .

 

[marvdmartian]

Originally posted by: ShockwaveVT

Originally posted by: AdamK47
When Circuit City is gone how am I supposed to get my $100 monster cables?

Go across the street to Best Buy, where they cost $105

Better yet, go to the going out of business clearance sale at CompUSA, where, after applying the 75% off savings, it'll only cost you $110!! :roll:

 

[Pocatello]

Back in the old days, people bought stuffs from Sears Roebuck by mail or telephone, and our stuffs came by freight. Eventually civilization came, and we have B&M stores and shopping malls. Now we ordered our stuffs online from .com stores, and we wait anxiously for our toys to arrive via UPS (oh god why Newegg why?), FedEx (ZipZoomFly rocks), etc. B&M stores are overpriced and stocked annoying idiots.

 

[her209]

Originally posted by: Pocatello
Back in the old days, people bought stuffs from Sears Roebuck by mail or telephone, and our stuffs came by freight. Eventually civilization came, and we have B&M stores and shopping malls. Now we ordered our stuffs online from .com stores, and we wait anxiously for our toys to arrive via UPS (oh god why Newegg why?), FedEx (ZipZoomFly rocks), etc. B&M stores are overpriced and stocked annoying idiots.

There are multiple reasons:

1. Ease of price comparison between different sellers.
2. People are lazy.
3. Its better for the environment.

 

[Captante]

Originally posted by: pyonir

Profit also was hurt by price cuts on flat-panel televisions and weakness in sales of its more profitable warranty services.

Are consumers starting to realize most warranty services offered by the stores are generally worthless? Finally? Or could it be that since CC sales people don't make commission on their sales, that they don't push as hard and sell as many? *shrug* found that part to be the most interesting part anyway.

Although they are a total ripoff on low-ticket items & somwhat overpriced on everything, CC's extended service plans are one of the better ones because they are to the best of my knowledge supplied by GE who will actually stand behind most claims & won't be going out of business next week. (even if CC does)

Anyway I've had pretty much only good experiences at CC & usually get great deals from them.

 

[Chadder007]

They shouldn't have fired all of those Employees that had a clue to what they were doing.

 

[QueBert]

Originally posted by: Parasitic
Soon enough CC will turn into another BB...

a store with better selection, usually lower prices and most of the rebates being instant in store not 3 different MIR's to get 40 bucks off a HD.

OH THE HORROR!


I'm not a huge BB fan but CC sucks, period.

 

[Svnla]

If I have to pick one, I like our local CC over BB. The prices are a little better, especially the DVDs (can't beat their $5 or less brand new DVDs).

I just don't like how they stock the shelves and lack of cashiers.

 

[HannibalX]

Originally posted by: Ronstang
Circuit City is a waste of time. A visit or two is all an educated person needs to realize their business model is flawed. The only time I step foot in that awful place is when the sale is just too enticing, and I still wonder whether walking into the store is even worth the good deal. If they go out of business they have earned the right with every step they have taken.

Yup, I agree. The CC near me completely changes the interior of store around once a year. They have no idea what they are trying to be.

 

[thepd7]

Originally posted by: dds14u

Originally posted by: Ronstang
Circuit City is a waste of time. A visit or two is all an educated person needs to realize their business model is flawed. The only time I step foot in that awful place is when the sale is just too enticing, and I still wonder whether walking into the store is even worth the good deal. If they go out of business they have earned the right with every step they have taken.

And there's a better B&M out there?

Have you heard of Fry's? Hell, even Best Buy, as bad as it is, beats Circuit City.

 

[flxnimprtmscl]

Originally posted by: thepd7

Originally posted by: dds14u

Originally posted by: Ronstang
Circuit City is a waste of time. A visit or two is all an educated person needs to realize their business model is flawed. The only time I step foot in that awful place is when the sale is just too enticing, and I still wonder whether walking into the store is even worth the good deal. If they go out of business they have earned the right with every step they have taken.

And there's a better B&M out there?

Have you heard of Fry's? Hell, even Best Buy, as bad as it is, beats Circuit City.

No, it really doesn't. It's not even close. Plus, at least I know Circuit City isn't trying to scam me outright, which is more than I can say for Best Buy.

If I may digress slightly, how can they call it Best Buy when it's more expensive then every other electronics B&M that I've ever been to?

 

[BlackTigers]

Damn was I pissed when my CC closed down. Everyone in there was so helpful, I didn't step into Best Buy for years because my Circuit City was wayy above average.

 

[Epic Fail]

Originally posted by: dds14u

Originally posted by: Ronstang
Circuit City is a waste of time. A visit or two is all an educated person needs to realize their business model is flawed. The only time I step foot in that awful place is when the sale is just too enticing, and I still wonder whether walking into the store is even worth the good deal. If they go out of business they have earned the right with every step they have taken.

And there's a better B&M out there?

Apple store.

/flamesuit on/

 

[DanTMWTMP]

damn i've always been really happy with the two local CC's. The manager in the one closer to me was so chill. I went there numerous times. I don't really like BB. I've never had an issue with circuit city, and I really liked their 30 min pick up thing. Ah well.

 

[0roo0roo]

its just a slightly creepy interior they have going on in circuit city.
i think they've ripped up the knobby plastic flooring which was pretty bad..red scheme aint so great. still bad. the stores stuck in the 80s

 

[Raduque]

Damn. Guess I need to hurry up and use my CC gift card.