The Five Dumbest Things on Wall Street This Week
3. Circuit City Slickers
Circuit City (CC) short-circuited again.
Shares of the Richmond, Va., home-electronics retailer tumbled 16% to a 52-week low Thursday after the company posted its latest sales shortfall. Circuit City said it swung to a fiscal second-quarter loss as sales in stores open at least a year fell 7.9% from a year ago. The company also expects to lose money in the third quarter, though it aims to return to profitability in the fourth period.
The lousy numbers highlight the widening gap between Circuit City and rival Best Buy (BBY), which earlier this week rode strong overseas sales gains to a stronger-than-expected second quarter profit. But Circuit City insists it's making progress in a "transformation" that resulted earlier this year in the layoff of 3,400 workers."Our domestic segment comparable store sales changes improved each month of the quarter," CEO Philip J. Schoonover said Thursday. He adds that various trends "lead us to believe that the store-level changes are having a positive impact on the customer experience." It's a shame so few customers are around to enjoy it. Dumb-o-Meter score: 85. The company hopefully cites "the results from the 65 learning center stores that are used to roll out our transformation changes."
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