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Thursday, 21 June 2007

Margins, Competition Hit Circuit City

Circuit City's first-quarter earnings show the company is facing similiar problems as Best Buy, but it's struggling more.

On Wednesday, Circuit City (nyse: CC - news - people ) reported a first-quarter loss of $54.6 million, or 33 cents per share, a marked deterioration from a profit of $6.4 million, or 4 cents per share, a year ago. The company was hurt by declining margins and tough competition.

Margins slipped at both Circuit City and rival Best Buy in the first quarter. Circuit City''s gross profit margin dropped to 22.5% in the quarter from 24.5% a year ago. On Tuesday, Best Buy reported a first-quarter gross profit margin of 23.9%, down from 25.4% a year ago. (See "Best Buy Shares Fall")

6 comments:

Low Cost Insurance said...

arizona auto insurance All Circuit City locations in our area are closing. One of those locations is in such a bad area it's no wonder they have struggled. Their corporate managers have not placed enough emphasis on good locations.

Low Cost Insurance said...

It's too bad, we need as much competition as possible. We're in trouble in Best Buy goes down too.
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Low Cost Insurance said...

We bought a big screen tv at circuit city last year and now hope there are no warranty issues.
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