Due to gross-margin pressures in the third quarter, primarilyfrom weak sales in flat-screen televisions, management expects totake a fourth-quarter charge of between $85 million and $105million, say store officials. About $30 million of that total isrelated to the store closings, the officials said.
Meanwhile, Douglas T. Moore, Circuit City's chief merchandisingofficer, has left the company. David T. Matthews, currently seniorvice president of Circuit City direct, will oversee the retailer'smerchandising, marketing, services and supply-chain operations.
The closures and personnel changes come after a strong Decembersales performance for the company, which posted a year-over-year,same-store sales gain of 4.2%. Total sales rose 5.9%, hitting $2.1billion during the month.
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