A recent article in the New York Times reported Best Buy cutting their 2009 earnings forecast. Lately all we have been hearing about is how bad Circuit City is doing and how they filed for bankruptcy and are laying off thousands and thousands of people. Yet, they're not the only electronics company doing poorly. Best Buy is also hurting. A Best Buy spokesperson is quoted saying, "Rapid, seismic changes in consumer behavior have created the most difficult climate we’ve ever seen," and it was " being hammered by the worst retail environment in its 42-year history." Over the Christmas season the store plans to offer deep discounts to keep customers coming in, which si good for us!!
Maybe now we'll be hearing more about Best Buy performing poorly also. The article stated the company's same-store sales fell 7.6% in October. They predict same-store sales will fall another 5-15% from November to February. Even though many analysts knew Best Buy would have to cut their earnings, no one predicted the magnitude at whcih they would. The forecasted revenue fell from $45.4 billion to $43.7 billion. Expected earnings decreased to $2.30 to $2.90 from $3.25 to $3.40 a share.
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