On offer, a handful of excuses from Circuit City execs on why their numbers suck:
TWICE: Circuit City's Q1 Sales, Earnings Stall
TWICE: Circuit City's Q1 Sales, Earnings Stall
Major structural changes and capital expenditures at Circuit City, compounded by a soft industry cycle, put a crimp in the company’s sales and earnings during its fiscal first quarter.
The No. 2 CE specialty chain reported a net loss of $54.8 million for the three months, ended May 31, while U.S. net sales declined 4.4 percent to $2.4 billion and same-store sales slid 6 percent against tough year-ago comparisons.
The No. 2 CE specialty chain reported a net loss of $54.8 million for the three months, ended May 31, while U.S. net sales declined 4.4 percent to $2.4 billion and same-store sales slid 6 percent against tough year-ago comparisons.
...
Video, down by double digits, reflecting a double-digit decline in total TV. High single-digit comp gains in flat panel, largely attributable to LCD, were offset by “a significant” decrease in projection and tube TV. Digital imaging and accessories decreased by single digits, and camcorders and DVD hardware declined by double digits;
IT, up by single digits, reflecting double digit gains in notebook computers and flat comps for desktop models;
Audio, down by double-digits, reflecting double-digit declines in portable digital audio, mobile, home audio and digital satellite radio products, and “a significant” double-digit increase in navigation products.
IT, up by single digits, reflecting double digit gains in notebook computers and flat comps for desktop models;
Audio, down by double-digits, reflecting double-digit declines in portable digital audio, mobile, home audio and digital satellite radio products, and “a significant” double-digit increase in navigation products.
I'm a big fan of "one-time restructuring costs." I'm also a big fan of the mindset that "we're struggling, so it must be the entire industry, not just us." There's something comfortable about being one loser amongst many. That way, it's not your fault. You are a unique snowflake that has gotten a few unlucky breaks. Isn't it amazing how smarter, better prepared competitors are somehow luckier?
If Circuit City had really gone for the gusto they should have blamed weather, unpredictable walk-in traffic patterns, and all the negative publicity that their financial woes have generated. Really, make some excuses that have some conviction!
Sphere: Related Content
No comments:
Post a Comment