Circuit City Beats Profit Estimates
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Circuit City Group, the second-biggest U.S. electronics chain, said fiscal second-quarter earnings plunged 88% to $6.8 million, or 3 cents a share, as sales of computers fell and costs to renovate and advertise rose. The results were a penny better than analysts’ expectations. Revenue dropped 19% to $2.04 billion, the Richmond, Va.-based company said.
The quarterly earnings decline was the fifth in a row at Circuit City, which lost sales to rival Best Buy Co. and reorganized stores to add more digital goods, such as DVDs, analysts said.
Sales recovered during the weekend after falling immediately after the Sept. 11 terrorist attacks, the company said.
Circuit City did not change its second-half profit forecast.
Shares of Circuit City rose 49 cents to $10.40 on the New York Stock Exchange.
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