Circuit City Stands By 2006 Forecasts

Circuit City Stores Inc. (CC) on Tuesday said it still expects sales growth of 3 percent to 6 percent in its current fiscal year, with comparable-store sales growth in the low single-digit range.

The retailer, which is hosting an analyst meeting on Tuesday, repeated its forecast for operating margin of 1.3 percent to 2.3 percent for its current fiscal year.

Analysts, on average, expect sales of about $10.85 billion in the current fiscal year, up from last year's sales of $10.47 billion, according to Reuters Estimates.

Circuit City said it will work on improving several areas, including creating new businesses.

The company said it would expand its technology services offering across the United States, starting in the second quarter, and work to reduce the gap in performance between its best- and worst-performing stores.

Circuit City also said its plans include 30 to 40 new and relocated store openings this year.