Circuit City Warns of Loss

The company cites slower sales of digital satellite systems and mobile phones.

Author:: TSC Staff
Publish date:: Nov 5, 2002 9:29 AM EST

Circuit City Stores

warned of a third-quarter loss, citing slower sales of digital satellite systems and mobile phones.

The electronics retailer said it expects a quarterly loss of 5 cents to 8 cents a share. It previously had expected a small profit. Analysts were expecting a quarterly loss of 1 cent a share, according to Thomson Financial/First Call.

Circuit City said it expects quarterly sales at stores open at least a year to grow in the upper single-digit range. It also said it is selling more items with lower profit margins, such as personal computers.

The retailer also said it is taking a "more cautious" view of the fourth quarter, due to a weak economy and recent sales trends.

Circuit City's shares were down 97 cents, or nearly 10%, at $9.23 in early trading.