Best Buy Cuts Guidance After Holiday Season Sales Decline
- 8 years ago
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 8.8% to $26.70 in premarket trading.
The company did improve its profit margin outlook for the quarter “as a result of our continuing conviction to a disciplined promotional strategy and strong expense management,” Chief Executive Hubert Joly said.
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 8.8% to $26.70 in premarket trading.
The company did improve its profit margin outlook for the quarter “as a result of our continuing conviction to a disciplined promotional strategy and strong expense management,” Chief Executive Hubert Joly said.