Circuit City Stores posted a narrower quarterly loss of $5.9 million for the 3rd quarter but said its outlook was cautious for the 4th quarter, which includes the key holiday shopping season.

The retailer said its rivals sold more discounted and special-offer items than expected in its fiscal third quarter ended Nov. 30, which hurt its sales of music and movies.

Circuit City reported a loss of $28.1 million a year earlier.

Circuit City said third-quarter sales rose 3.6 percent to $2.49 billion. It sold more higher-margin warranty plans, which helped lessen its loss.

Circuit City has been trying to improve its distribution system, and inventory at the end of the quarter was down 7 percent. But the company said it expects inventory to be slightly higher at the end of the fourth quarter.

By: DocMemory
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