Circuit City stock declines

Circuit City's stock drops 1-1/4 after the company reported a 10 percent drop in sales for the third quarter.

CNET News staff
Circuit City's (CC) stock dropped 1-1/4 of a point after the company reported that its comparable store sales declined 10 percent for the third quarter ending November 30, compared to a seven percent decline for the same quarter last year.

Net earnings were $19.8 million, 20 cents a share, compared with $31.5 million, 32 cents per share, for the same quarter last year for comparable stores, those that have been open for at least a year. The consumer electronics chain missed Wall Street's estimates by three cents a share, according to First Call.

Net earnings for the nine months were $68.2 million, 69 cents per share, compared with $97.3 million, 99 cents a share, for the same period last year.

"During the third quarter, sales of personal computers weakened dramatically while sales of most consumer electronic products remained soft, as they have throughout the year," said Richard Sharp, company chairman and CEO in a written statement.

During the quarter, Circuit City and Group Elektra of Mexico announced an agreement to establish a service that allows customers in the United States to purchase merchandise at a Circuit City store and ship it to family and friends in Mexico.