Here’s a chart you wouldn’t expect to see this time of year–especially at one of biggest consumer electronics retailers.
In fact, only the Grinch could love the three words that best describe today’s sales numbers out of Best Buy (NYSE:BBY).
In short, they stink, stank, stunk…..
From CNNMoney by Aaron Smith entitled: No holiday cheer for Best Buy. Stock plunges.
“Best Buy’s stock plunged on Tuesday after the retailer reported sales and earnings for the quarter which includes Black Friday that missed Wall Street’s estimates. The company also lowered its guidance.
Best Buy reported that revenue totaled $11.89 billion in the third quarter, which ended on Nov. 27. That’s a decline from $12 billion during the same quarter a year ago. It also fell short of expectations from analysts, who had forecast $12.45 billion, according to a consensus from Thomson Reuters.
Best Buy’s stock fell about 14% after the opening bell.
Best Buy’s dismal performance was in spite of an overall nationwide rise in retail sales. The Commerce Department reported on Tuesday that retail sales rose 0.8% in November.
The company lowered its guidance for the fiscal year to a range of $3.20 to $3.40 a share, compared to its previously announced guidance of $3.55 to $3.70. Analysts had been forecasting a profit of $3.59 a share.
Best Buy said that its same-store sales dropped 3.3% for the quarter, compared to a gain of 1.7% in the year-ago quarter.”
This is what happens when you kill the goose that laid the golden egg.
Or when people suddenly learn what the Grinch finally did….
“Maybe Christmas,” he thought, “doesn’t come from a store. Maybe Christmas… perhaps… means a little bit more.”~ Dr. Seuss, From ‘How The Grinch Stole Christmas’.
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