Circuit City Hammered By Flat-Screen TV Price War
Yesterday, Circuit City unexpectedly posted a loss, when Wall Street had been expecting profits. The Richmond, Va.-based consumer electronics chain said its net loss for the quarter ended Nov. 30 came to $16 million, compared with profit of $10.1 million. Revenue gained 6.9% to $3.1 billion, and same-store sales increased by 5.1%.
"The pace of the decline in flat panel television prices accelerated during the quarter as manufacturers and retailers competed aggressively for market share, and prices fell to unanticipated levels," the company said.
Last week, Best Buy Co., also citing the price wars on flat-screen TVs, posted lower-than-hoped-for profits. -- Sarah Mahoney