Connect with us

Headlines

Best Buy Revises Sales Forecast

Another hit to the electronics sector in tough holiday season

Published

on

Days after competitor Circuit City filed for bankruptcy protection, Best Buy (Minneapolis), the nation’s largest electronics retailer, has cut its full-year profit forecast, citing continued weakness in consumer spending that it says has been exacerbated by the recent turmoil in the financial markets. According to a company statement, the “uncertainty regarding future consumer spending” would limit the company’s ability to project revenue for the critical holiday shopping season.

“Since mid-September, rapid, seismic changes in consumer behavior have created the most difficult climate we've ever seen,” says ceo Brad Anderson. “Best Buy simply can't adjust fast enough to maintain our earnings momentum for this year.”

The November-December holiday shopping period typically accounts for more than 50 percent of the retailers' annual profits and sales. The company has revised its earnings for the year to be between $2.30 and $2.90 a share on sales of between $43.7 billion and $45.5 billion. It says same-store sales for the period could decline between 1 to 8 percent. The company previously had forecast 2008 earnings of between $3.25 to $3.40 based on a same-store sales increase of 2 to 3 percent for the year.

 

Advertisement

FEATURED VIDEO

MasterClass: ‘Re-Sparkling’ Retail: Using Store Design to Build Trust, Faith and Brand Loyalty

HOW CAN WE EMPOWER and inspire senior leaders to see design as an investment for future retail growth? This session, led by retail design expert Ian Johnston from Quinine Design, explores how physical stores remain unmatched in the ability to build trust, faith, and loyalty with your customers, ultimately driving shareholder value.

Presented by:
Ian Johnston
Founder and Creative Director, Quinine Design

Promoted Headlines

Advertisement
Advertisement

Subscribe

Advertisement

Facebook

Most Popular