WASHINGTON (Map, News) - Richmond-based Circuit City on Wednesday reported a $54.6 million first quarter loss after sales dipped for the first time since 2004.

The worse-than-expected first quarter results forced the electronics retail chain — second in size only to Best Buy — to restate its financial guidance for the year.

The company had already cut jobs in the spring, including workers in the Washington region, and is in the middle of a cost-savings restructuring.

The company lost 33 cents per share, compared with a 4 cent profit in the first quarter of 2006. Revenue was also down to $2.49 billion from $2.6 billion last year.

Company President and CEO Philip Schoonover said he expects difficult times to continue.

“With an uncertain macroeconomic environment, for the time being, it is difficult to project sales and earnings performance for the balance of the fiscal year. As a result, we are withdrawing financial guidance at this time,” he said. “As a result of the changes we are rolling out this summer, we expect continued volatility in our financial results in the near term.”

In a conference call with analysts, company officials said the losses were a result of a broader downturn in the economy. They said consumers are less willing to spend money on big-ticket items like flat-screen televisions — a staple of Circuit City’s business — and are increasingly turning to discount retailers for more expensive purchases.

“In terms of who's winning and losing, clearly discounters are people we need to keep an eye on,” said David Matthews, chief of marketing at the company.

Analysts said they expect the news to further shake the company, and lower morale already hit hard after this spring’s layoffs. The company would not say if more layoffs were planned.

Best Buy, the firm’s main competitor, also announced lower-than-expected earnings this week, 28 percent below predictions.

Shares of Circuit City didn’t react badly to the news, trading flat throughout Tuesday’s session.

dfrancis@dcexaminer.com