Business

Circuit City reports 4th-quarter profit as cost cutting offsets lower sales

Posted April 08, 2008 11:00 pm

Associated Press

RICHMOND, Va. -- Circuit City Stores Inc. says it swung to a fiscal fourth-quarter profit, as cost cutting offset lower sales.

The Richmond, Va.-based electronics retailer said Wednesday profit for the quarter ended February 29 totaled $4.9 million, or 3 cents per share, compared with a loss of $4.3 million, or 3 cents per share last year. Analysts polled by Thomson Financial predicted a loss of 7 cents per share and Circuit City forecast a modest loss.

Revenue fell 8 percent to $3.65 billion, from $3.95 billion last year. Analysts expected revenue of $3.79 billion.

Same-store sales, or sales in stores open at least one year, fell 10.4 percent.

For the first quarter, the company expects a loss from continuing operations before taxes of $180 million to $195 million, due to weak operating trends.

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