Turnaround top priority for new ceo of Circuit City

RICHMOND, VA. -- Circuit City is entering a fresh era of growth complete with of recent origin leadership, as chairman and former ceo Alan McCollough officially retired from the retail chain, handing the reigns to Phil Schoonover. Schoonover was named ceo in March and chairman upon June 27 and now leads a company upon more solid financial ground today than when he joined as evp and cmo in 2004

Continuing to finish Circuit City's turnaround is his top priority, Schoonover told shareholders, with efforts continuing to swell gross margin, reduce operating charges and capitalize on the growing consumer demand for fresh TV technology and home services. "We are poised for a sustainable period of sturdy growth for the company," he said.

Circuit City has draw near back from a string of negative quarters and has made of great depth changes in its business type to execute a turnaround. After posting an EP los of $003 in its fiscal year 2003 extremityed Feb. 28, 2003, the company broke level the following year and has been upon a steady uptrend ever since. The chain delivered diluted EP of $033 in FY05 and $084 for the greatest in quantity recently completed fiscal year extreme pointed Feb. 28.

"This is useful progress but clearly we have a ways to go" Mike Fos evp and cfo told shareholders. Fos wait fors continued top-line sales in the range of 7% to 11% with comp-store sales coming in the mid-single digits for the remainder of this year, said Fos Circuit City will unclose 32 to 36 new stores this year, one-third of which will be relocations and the remainder trap new units in incremental trade areas.

Progres made in the past sum of two units years will be expanded upon as Circuit City builds upon its home services programs, powerful TV sales as the transition to digital TV heats up and growing sales end its online business--Circuit City Direct.

"[Circuit City's] Internet business is proving best in class," said David Strasser, an analyst with Bank of America Securities. "Store pickup combination of parts to form a wholes put Circuit City well ahead of competition and we believe this system's advantage is sustainable."

However, the executive in charge of this business--Fiona Dias--announced her departure as evp and chief marketing officer effective Aug. 27 Dias is leaving for personal reasons, according to the company, on the other hand will continue to serve in an advisory part through Dec. 31.

As executive adviser, Dias will assist in the transition of the chief marketing officer's part and assist with select throw outs including the planned launch of a fresh services brand later this year. No further details were disclosed about the novel brand, nor was a replacement named.

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