Circuit City's holidays not so happy
Company posts big loss amid a variety of problems that are "self-induced." It also expects an operating loss for the current quarter, which includes the holiday selling season.
Circuit City posted a steep quarterly loss on Friday and warned the operating losses will continue into the current quarter, which includes the bulk of the holiday shopping season, traditionally when retailers make most of their money.
"We are very dissatisfied with our third quarter results," Circuit City CEO Philip J. Schoonover said in a statement, adding that the company saw fewer sales of profitable items like accessories, services, and extended warranties.
"We believe that these issues are primarily self-induced and are within our control to improve," he said.
I can't say I was surprised given my Black Friday experience at Circuit City. My partner and I waited for hours in line, not because there were so many customers, but because its system for handling a crowd was so poor.
In addition to the $208 million loss from continuing operations that Circuit City posted for the quarter ending November 30, it said it will have a "modest" loss for the current quarter, which spans through February.