5 Retailers With Financial Woes
Circuit City has filed for bankruptcy, and several clothing retailers had bad third quarters
1. Macy's Inc. - Macy's had a loss in the third quarter and warned that the holiday season would be a "nail-biter." The company also predicted that sales at stores open at least a year would fall more than 10 percent in November.
2. Circuit City - The nation's second-biggest electronics retailer filed for bankruptcy on November 10 but will stay open during the holiday season. It has had only one profitable quarter in the past year. It previously announced that it will close 20 percent of its stores and lay off thousands of workers.
3. J.C. Penney - The department store said Friday that third-quarter profit fell by more than half (52 percent). Sales in stores open at least one year fell 10.1 percent.
4. Abercrombie & Fitch - The retailer saw a 46 percent decline in third-quarter profit. Revenue fell 8 percent to $896.3 million from $973.9 million a year ago. Abercrombie said it expected sales to worsen in the fourth quarter, when they could be down about 26 percent.
5. Starbucks - A combination of fewer customers and high costs for closing poorly performing stores caused the coffee retailer's fourth-quarter profit to fall 97 percent to $5.4 million.
Sources: Forbes, Associated Press, New York Times
advertisement
