Best Buy Cuts Guidance on Weak Holiday Sales
January 14 2016 - 8:30AM
Dow Jones News
Best Buy Co. on Thursday lowered its sales outlook for the
current quarter after weak mobile-phone sales hurt holiday
results.
For the fourth quarter, the electronics retailer now expects
domestic sales to decline 1.5%, compared with previous guidance for
flat sales, because of softer consumer demand in mobile phones and
greater-than-expected declines in other consumer electronics.
Shares, which have fallen 27% over the past 12 months, slid
another 6.1% to $27.48 in premarket trading.
Best Buy reported revenue edged down 0.8% during the nine weeks
ended Jan. 2 to $10.05 billion. Chief Executive Hubert Joly said
domestic revenue increased, excluding mobile phones, year-over-year
on strength from health and wearables, home theater and appliances.
The company also pointed to a 12.6% jump in online revenue.
Same-store sales, however, fell 1.4% during the holiday
season.
Best Buy joins a host of retailers posting underwhelming holiday
results. On Tuesday, GameStop Inc. reported that sales of new
software fell 9.7% during the holiday period, further fueling
concerns that the increase in digital downloads is hurting the
videogame retailer.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
January 14, 2016 08:15 ET (13:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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