Earnings Preview: Circuit City Stores Inc.

OVERVIEW: The Richmond, Va.-based consumer electronics retailer has said it will likely post stronger-than-expected results for the quarter ending Aug. 31.

The company, which has seen only one profitable quarter since the second quarter of 2007, says it expects the results to be "slightly better" than earlier forecasts for a loss from continuing operations between $170 million and $185 million. That figure excludes any one-time charges.

The announcement came as Philip J. Schoonover, Circuit City's chief executive, chairman and president, abruptly resigned amid plummeting stock prices and calls for his ouster.

Board member James A. Marcum was named the chain's interim president and chief executive. Former tobacco executive Allen B. King was named the new chairman. Marcum was one of three directors elected to Circuit City's board in June as part of a deal to defuse a proxy fight with Mark J. Wattles, whose investment firm holds a 6.5 percent stake in the company.

Last month, Marcum, who was involved in turnaround efforts at movie-rental chain Hollywood Entertainment Corp. and retailer Ultimate Electronics Inc., was appointed Circuit City's vice chairman.

The nation's No. 2 consumer electronics retailer announced in May that it hired Goldman Sachs to explore strategic options, but has never given an official timetable for any action.

The move came as the retailer opened its books to Blockbuster Inc., which had made a takeover bid of more than $1 billion with plans to create a 9,300-store chain to sell electronic gadgets and rent movies and games. The Dallas-based movie-rental chain withdrew its bid in July because of market conditions.

Rival Best Buy Co. said Sept. 16 its second-quarter profit slid 19 percent as it spent money to complete the rollout of its Best Buy Mobile concept to nearly 1,000 North American stores.

BY THE NUMBERS: Analysts surveyed by Thomson Reuters, on average, expect Circuit City to post a loss of $1.04 per share on revenue of $2.53 billion.