This summary is based on the first quarter fiscal 2008 earnings call conducted by Circuit City Stores, Inc. (CC: chart) on June 20, 2007.

Chairman, President and CEO: Phil Schoonover
Executive Vice President, Merchandising, Services and Marketing: Dave Matthews
Executive Vice President, Multi-Channel Sales: Danny Clark
Senior Vice President, Treasurer and Controller: Phil Dunn
Director, Investor Relations: Bill Cimino

Key Investor Issues

- Net loss from continuing operations was $54.8 million, or 33 cents per diluted share.
- Net sales were $2.49 billion, a 4.3% decrease from $2.60 billion a year earlier.
- Net cash, cash equivalents and short-term investments decreased by $270 million to $364 million.

First Quarter Financial Highlights

The company reported a 4.3% sales decrease to $2.49 billion from $2.60 billion in the same period last year, with consolidated comparable store sales decreasing 5.6% from the prior year.

- The net sales for the domestic segment decreased 4.4% to $2.38 billion from $2.49 billion in the prior year, with comparable store sales decreasing 6% from the prior year.
- The direct channel sales, including Web- and call center-originated sales, grew 21% and services revenues grew 70% from the prior year.
- During the quarter, the domestic segment opened one relocated Superstore, which replaced a store that was closed in February 2007.

In the video category, the company reported a double-digit comparable store sales decrease in the quarter.

- Total television comparable store sales decreased by double digits with comparable store sales decrease in projection and tube televisions offsetting the 9% comparable store sales growth in flat panel televisions.
- Triple-digit growth in large LCD screens was partially offset by a sharp decline in plasma and a modest decline in small and medium LCD. Projection and tube TV continued with sharp declines per trend in recent quarters.
- Comparable store sales of digital imaging products and accessories decreased by single digits while store sales of camcorders and DVD hardware declined by double digits.

In the information technology category, there was a comparable single-digit increase in sales.

- Store sales of notebook computers increased by double digits while desktop computers were approximately flat compared with the prior year period.

The audio category produced a double-digit decrease in the quarter.

There were double-digit declines in comparable store sales of portable digital audio, mobile, home audio and digital satellite radio products, which were partially offset by a significant double-digit sales increase in navigation products.

The entertainment category produced a single-digit comparable store sales increase, reflecting strong double-digit comparable store sales increases in video gaming products and PC software.

Comparable store sales of video software declined by low-double digits and comparable store sales in music software declined by strong double digits.

The domestic segment extended warranty net sales were $73.7 million, or 3.1% of domestic segment net sales compared to $92.3 million, or 3.7% of domestic segment net sales in the previous year.

- Services revenues increased 70% to $64.4 million from $37.9 million in the prior year.

The International segment registered net sales decrease of 2.2% to $108.6 million from $111.1 million a year earlier.

- The decrease was driven by the impact of closing 53 retail stores, net of openings, during the fourth quarter of fiscal 2007.
- The effect of fluctuations in foreign currency exchange rates favorably impacted the sales decline by approximately 1 percentage point.
- Comparable store sales increased 4.4% for the quarter in local currency.

The consolidated gross profit margin was 22.5% in the quarter compared to 24.5% in the same period a year ago.