Circuit City still predicts ‘modest loss’
RICHMOND, Va. – Electronics retailer Circuit City Stores Inc. on Monday said same-store sales fell 11.4 percent in December, as strength in the last two weeks of the month was not enough to offset declining sales of tube televisions, camcorders and other devices earlier in December.
Based on its sales results, the company continued to back its forecast of a “modest loss” before taxes for the fourth quarter, despite America’s traditional holiday hunger for televisions and other high-tech gadgets.
“Our sales performance, while disappointing, was in line with our expectations,” Chief Executive Philip J. Schoonover said.
Schoonover said the company will pay attention to giving sales associates the “necessary knowledge and tools needed to improve both sales and margin.” The company had laid off 3,400 high-paid workers and replaced them with lower-paid new hires in March.
Attention also will be paid to expanding sales of Firedog, the company’s PC services and home-installation business, Schoonover said.
Shares of United Airlines parent UAL Corp. fell 5.9 percent Monday after a veteran industry analyst downgraded the company, citing festering labor discord that he said includes pilots calling in sick and working the minimum number of hours required.
Analyst James Higgins of Soleil Securities Group said there is “rising evidence” that actions by pilots contributed to the carrier’s bad December in which it had double the industry average number of delays. He said such actions are legal but threaten the company’s profits.
Shares in the company fell $1.82, to $29.18 in Monday trading after touching a 15-month low of $27.85, at which point it was down 10.2 percent for the session. United has blamed the raft of cancellations and delays largely on the worst December weather in its 80-year history, while the pilots’ union has claimed staffing shortages were at fault.
Xerox Corp. unveiled a new logo Monday intended to scuttle its old image as a photocopier manufacturer and highlight its software, color printers and other technologically updated products.
“There has been a perception gap in the marketplace,” said Richard Wergan, vice president of worldwide brand marketing and advertising at the Norwalk-based office equipment manufacturer. The all-capitalized corporate name in red has been replaced with a lowercase version. It also sports a red sphere marked by a white “X” laced with silver stripes.