quarterly loss widened on flattish sales and the electronics retailer said it is cautious about the holiday selling season.
Circuit City lost $5.9 million, or 3 cents a share, in the three months to Nov. 30, compared with a loss of $2.5 million, or 1 cent a share, last year. The year-ago quarter included earnings from discontinued operations of 12 cents a share. Revenue was $2.49 billion in the latest quarter compared with $2.41 billion last year.
Analysts surveyed by Thomson First Call had been forecasting a loss of 8 cents a share in the latest quarter on $2.50 billion in revenue. The stock climbed 22 cents, or 1.5%, to $15.28 in premarket trading.
"We were disappointed with our third-quarter sales and are cautious in our fourth-quarter outlook," Circuit City said. "We saw a general sales weakness as the market was more promotional than we anticipated, particularly in the second half of the quarter.
"Our decision to be less promotional than last year in music and movie software and business model changes in digital satellite services and wireless phones and related products added to the overall weakness," it said.