Circuit City's Q1 Comps Drop 5.6%

RICHMOND, VA-Circuit City Stores’ same-store sales fell 5.6% during the company’s first quarter year over year, as television transactions posted wide declines. The slide comes as the retailer is streamlining its operations in preparation for the holiday season at the end of the year.

Circuit City’s net sales declined 4.3%, to just less than $2.5 billion, during the quarter, which ended May 31. The company posted a $54.6-million loss, compared to net earnings of $6.4 million during the same year-ago period.

Based on the company’s first-quarter performance, management has withdrawn financial guidance for the rest of the fiscal year. “Combined with an uncertain macroeconomic environment, for the time being, it is difficult to project sales and earnings performance,” says Philip Schoonover, chairman, president and chief executive officer Circuit City.