Finally, someone admits to doing something wrong. Circuit City
Circuit City is trying to remake itself, remodeling the stores and cleaning out a crusty old corporate structure. Management didn't think the process would hurt sales and profits the way it did. The new plan is to slow things down a bit, "focus on execution," and figure out how the new "The City" store concept really works before shoehorning it into every available location.
That sounds like a more responsible approach, not to mention more realistic. Circuit City could still take it a few steps further, though. In a semi-scientific approach that this company would do well to emulate, Blockbuster
Circuit City is playing catch-up behind the leading specialist store, Best Buy
In other words, this stock could be a sweet, sweet Cinderella story if Schoonover's gang pulls off a decent turnaround. The trouble is that the improvement is far from guaranteed. This was the fourth quarter in a row of missed Wall Street targets, which hardly inspires confidence even if you don't take much stock in analyst estimates.
So thanks for owning up to your faults, gentlemen. Now, fix them!
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