RICHMOND, Va. (AP) -- Circuit City Stores Inc. posted a wider second-quarter loss and withdrew its fiscal 2009 outlook Monday amid sluggish sales, poor traffic and heightened competition. Its shares fell nearly 9 percent as investors worried about the company's future.

The nation's second-largest consumer electronics retailer -- which replaced its CEO last week -- said it lost $239.2 million, or $1.45 per share, in the three months ended Aug. 31, compared with a loss of $62.8 million, or 38 cents per share, in the same quarter last year. Excluding $73 million of non-cash asset impairment charges, the loss came to $162.7 million -- better than earlier forecasts for a loss from continuing operations of between $170 million and $185 million.

Sales declined 10 percent to $2.39 billion from $2.64 billion, with consolidated same-store sales falling 13.3 percent.

Analysts polled by Thomson Reuters had expected a loss of $1.04 per share and $2.53 billion in sales.

"We realize the performance of this company is unacceptable to all of our stakeholders and that it is imperative that we take the right steps to accelerate our turnaround," James A. Marcum, vice chairman and the new acting president and chief executive, said in a conference call with investors.

"The past several years have been difficult for this company. ... We must get back to the basics and, make no mistake, this is all about our customers."

The company also said it was "prudent" to withdraw its previous outlook for fiscal 2009 and suspended store openings beginning with fiscal 2010.

Chief Financial Officer Bruce H. Besanko said sales remain challenged by a significant decline in traffic, competition and a weakened brand position.

Circuit City also announced it is undertaking a comprehensive review of the business and has identified key initiatives for the holiday season, including enhancing customer service and improving inventory on key items.

"Heading into our most important selling season, we are focused on consistent and successful execution in key areas that will drive traffic and build customer confidence," said Marcum, who replaced Philip J. Schoonover, who stepped down last week.

Marcum, who was appointed vice chairman last month, was one of three directors elected to Circuit City's board in June as part of a deal to defuse a proxy fight with Mark J. Wattles, whose investment firm holds a 6.5 percent stake in the company.

Many of the analysts on a conference call questioned Circuit City's relationship with vendors as the company heads into the holiday season.

"It is clear that the vendors do view us as relevant, they do view us as having a reason for being," Marcum said. "They are very supportive of where we are, they are actually very happy with a number of the initiatives we're talking about ... and the speed at which we are moving."

Stifel, Nicolaus & Co. analyst David Schick told investors in a note Monday that Circuit City had $215 million in short-term borrowings under its credit facility, up from $55 million from last quarter.

"Circuit City's pressures are coming from all sides and the overarching macroeconomic economic conditions are still quickly worsening," Schick said. "The risks of bankruptcy are very real. ... Vendors will have to decide how they plan to do business at CC."

Circuit City shares fell 12 cents, or nearly 9 percent, to $1.25 in midday trading Monday.

The company also said Monday that while strategic options will always be explored, it is "prudent to focus internally on improving the company's performance in order to operate as a standalone business."

In May, Circuit City announced it hired Goldman Sachs & Co. to explore strategic options, but has never given an official timetable for any action. The move came as the retailer opened its books to Blockbuster Inc., which had made a takeover bid of more than $1 billion with plans to create a 9,300-store chain to sell electronic gadgets and rent movies and games. The Dallas-based movie-rental chain withdrew its bid in July because of market conditions.

In the second quarter, Circuit City's video sales saw a high single-digit decrease, with low single-digit sales growth in flat-screen televisions unable to offset significant sales decreases in tube and projection televisions. Sales of camcorders and DVD hardware fell by double digits. Sales of digital TV converter boxes did offset some of the declines in the category, the company said.

Sales of information-technology products fell by double digits in the first quarter, as sales of notebook computers grew and sales of desktop computers continued to decline.

Sales of extended warranties fell about 8 percent in the quarter, and revenue from Firedog, the company's PC services and home-installation business, decreased 5 percent, Circuit City said. Internet- and call center-originated sales grew 1 percent.

(Copyright 2008 by The Associated Press.  All Rights Reserved.)