4th-Quarter Profit Off 17% at Circuit City
Circuit City Stores Inc. said fiscal fourth-quarter profit fell 17% because of weakening electronics sales and tough competition. The Richmond, Va.-based company, which owns the Circuit City electronics chain and a controlling stake in the CarMax Group automobile sales chain, said net income fell to $68.3 million, or 68 cents a share, from $82.1 million, or 83 cents a share, in the year-earlier quarter. Analysts have been worried about Circuit City’s balance sheet because consumer electronics sales had slowed dramatically in the last year at the same time that the expansion of the company’s CarMax business has required more and more money. The results slightly exceeded expectations of 67 cents a share, based on the average estimate of 18 analysts surveyed by IBES International Inc. Circuit City’s stock rose $2.25 to close $36.475 on the NYSE.
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