Feeds

Best Buy sheds lost revenue tears, shares holiday fears

Too many people only want their two front teeth

The essential guide to IT transformation

best buyBest Buy isn't so sure customers will spring for that $50 spool of Monster Cable speaker wire in this economy, so the electronics retailer today lowered fiscal-year earnings expectations.

Although Best Buy saw its biggest rival, Circuit City, file for Chapter 11 bankruptcy protection on Monday, the mood is hardly celebratory at executive HQ. Best Buy issued a warning to investors that it sees "softer" consumer spending right now and is uncertain how all the turmoil in the financial markets will play out in the consumer electronics space over the all-important holiday shopping season.

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

He assured investors, however, that the company is "adjusting" its expenses nonetheless. "Adjusting" in the biz is usually code for "firing" and "closing," but Best Buy stopped short of announcing any specific plans.

Anderson said Best Buy is also attempting to expand its market share amidst belt-tightening. It recently pumped $1bn into a joint venture with Carphone Warehouse and – arguably inexplicably – paid $120m to buy Napster.

The company said it's total store sales declined by about 7.6 per cent for fiscal October. The slump followed a comparable sales decline for fiscal September as well.

"In 42 years of retailing, we've never seen such difficult times for the consumer. People are making dramatic changes in how much they spend, and we're not immune from those forces," said Brian Dunn, Best Buy's chief operating officer. "That's why it's critical that we manage our spending, while preserving key growth initiatives. Having said that, we believe that our strategic indicators remain strong."

And a parting shot for Circuit City:

"In fact, given recent announcements by competitors, we believe we have even greater potential to serve new customers and to capture market share in the months and years ahead," added Dunn.

Best Buy previously expected fiscal 2009 (ending February 28, 2009) revenue of about $47bn. Now it's revenue guidance is between $43.7bn and $45.4bn.

By our count, that's a loss of sale on approximately forty five million four hundred fifty five thousand five hundred and forty five $33 Monster Cable DVI-to-HDMI adapters. ®

Next gen security for virtualised datacentres

More from The Register

next story
BBC: We're going to slip CODING into kids' TV
Pureed-carrot-in-ice cream C++ surprise
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Twitter: La la la, we have not heard of any NUDE JLaw, Upton SELFIES
If there are any on our site it is not our fault as we are not a PUBLISHER
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?