Circuit City Stores Inc. said its loss widened in the 1Q 2008 because of a more than 11% drop in sales at established stores. The company reported a loss of US$164.8 million in the three months ended May 31 compared with a loss of $54.6 million a year ago. The company said revenue fell 7% to $2.30 billion from $2.49 billion. Same-store sales dropped 11.3%.
Circuit City said it expects a "gradual recovery" in the second half of fiscal 2009, and reaffirmed its outlook for the year of a mid-single digit decline in domestic comparable store sales.
In the first quarter, Circuit City's video sales saw a slight-double-digit decrease, with high single-digit sales growth in flat-screen televisions unable to offset significant sales decreases in tube and projection televisions. Sales of camcorders and DVD hardware fell by double digits. Sales of notebook computers grew and sales of desktop computers continued to decline.