So much for the best Black Friday Everrrrrr...
Best Buy shares tumble
after forecasts missed
Best Buy, the US’s biggest electronics retailer, reported a fall in net earnings that was worse than Wall Street expected but eked out a small gain in sales thanks to the beginning of the end-of-year shopping season.
The retailer made a net profit of $154m, or $0.42 per diluted share, in the three months to November 26, down 29 per cent from the same period last year. Excluding one-off items, net income was 47 cents per share compared with analysts’ expectations of 52 cents per share.
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IN RETAIL
The miss sent shares in Best Buy down 9.2 per cent to $25.98 in pre-market trading in New York.
Revenue increased by 1.7 per cent to $12.1bn during the quarter while like-for-like sales – at stores open at least one year – edged up by 0.3 per cent.
The quarter ended on the day after Black Friday, the post-Thanksgiving shopping day that is one of the busiest of the year.
Best Buy opened at midnight as the day began and Brian Dunn, chief executive, hailed a “successful kick-off” to the holiday season but did not provide any numbers on Black Friday sales.
The retailer is struggling to stop its business being eroded by online rivals such as Amazon, price comparison websites and smartphone-toting shoppers who use its stores as showrooms and then buy elsewhere.
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