Circuit City 2nd-Quarter Profit Falls 25%

Circuit City Group said profit fell 25% in its fiscal second quarter to $55.3 million, or 27 cents a share, because of costs related to ending sales of appliances and remodeling some stores. The results matched analysts’ expectations, which had been lowered from 43 cents in July when Circuit City warned that earnings would miss forecasts. Sales rose 3.4% to $2.51 billion. Price markdowns on appliances reduced earnings by 11 cents, and renovations, begun this quarter in Florida, cut profit by 3 cents. Earlier this month, the company said profit at Circuit City stores would be below its forecasts for the quarter, though overall profit would match analysts’ estimates because of higher profit at CarMax, which is 75% owned by Circuit City. The car dealerships’ earnings climbed to $16.3 million, or 15 cents a share, from $3.2 million or 3 cents, a year ago, beating forecasts of 11 cents to 13 cents, as same-store sales jumped 18%. Shares of Richmond, Va.-based Circuit City closed up 88 cents at $25.50 on the NYSE.