You would think with circuit city out of business and the sale of netbooks on the rise best buy would have no problem beating estimates, guess they didn't. Best Buy Profit Misses Estimates as Sales Fall at Older Stores By Chris Burritt Sept. 15 (Bloomberg) -- Best Buy Co., the worldâs largest electronics retailer, reported lower second-quarter profit than analysts predicted as sales declined at older stores and costs rose. The shares declined in early U.S. trading. Profit totaled 37 cents a share, Richfield, Minnesota-based Best Buy said today in a Business Wire statement. Analysts had anticipated 42 cents, the average of estimates compiled by Bloomberg. Sales at U.S. stores open at least 14 months dropped 3.9 percent, while selling, general and administrative expenses accounted for almost 22 percent of revenue, compared with 21 percent a year earlier. U.S. consumers have curbed spending as the number of jobs lost since the start of the recession in December 2007 reached 6.9 million. âWe need to see a revenue story emerge,â Stacey Widlitz, an analyst for Pali Capital Inc. in New York, wrote in a note to investors yesterday. She rates Best Buy âneutral.â Net income dropped 22 percent to $158 million in the three months ended Aug. 29 from $202 million, or 48 cents a share, a year earlier, the company said. Revenue climbed 12 percent to $11 billion. Analysts projected $10.8 billion. Best Buy fell 3.2 percent to $39.10 in trading before U.S. exchanges opened. The shares rose 65 cents to $40.41 yesterday on the New York Stock Exchange. The stock had climbed 44 percent this year before today, setting it on course for its biggest annual gain since 2003. Citing âsigns of stabilityâ in customer visits, the company raised its full-year earnings forecast to a range of $2.70 to $3 a share from a June prediction of $2.50 to $2.90, excluding first-quarter restructuring charges.
It is tough to borrow more money to buy a 1500 dollar flat screen TV made in china. people are worried about potential job loss and are saving money and trying to pay debts down. I think a new kind of economy has to come in the us but I am not sure what kind.
best buy needs that hot new item to sell. think about it. almost everyone has a flat screen tv by now. computers are appliances, cell phones are better bought from the carriers. there is little need to shop best buy any more. besides they havent been the best place to buy anything for years.