Circuit City 4Q earnings up, sales down

RICHMOND, Va. Circuit City Stores reported net earnings of $4.5 million, or 3 cents per diluted share, for its fourth quarter ended Feb. 29 compared to a net loss of $7.2 million, or 4 cents per diluted share for the same period last year.

The company reported that net sales for the quarter decreased 7.7% to $3.65 billion from $3.95 billion in the prior year, with consolidated comparable-store sales decreasing 10.4%.

"While the financial results to date clearly do not reflect the expected benefits of our initiatives, we firmly believe the company has the right strategy, the right focus, the right management team and sufficient resources, including expected cash flows and borrowing capacity, to complete our turnaround plan and create long-term sustainable shareholder value," said Philip Schoonover, chairman, president and ceo of Circuit City Stores.