The U.S. largest retailer warns that revenue growth in the holiday quarter will fall. But one analyst sees this as a buying opportunity. Fred Katayama reports.
TV AND WEB RESTRICTIONS~****~ The holiday sales season may not bring much cheer to Best Buy. The U.S.' largest electronics retailer issued a cautious outlook. CEO Hubert Joly warned that the industry's declines could continue through the December quarter. It now expects its revenue growth rate to fall. That weak forecast hammered the company's stock in early trading. It had rallied strongly Wednesday to chip away at its nearly 19 percent loss this year. BB&T analyst Anthony Chukumba said, "This is a buying opportunity ... They always set themselves up to underpromise and overdeliver." In the latest quarter, Best Buy's profit rose. But its comparable sales only managed to inch higher, falling short of expectations. Falling sales of tablets and mobile phones and services partly offset growth in big-ticket large-screen TVs and appliances. The retailer has been pushing sales of appliances which have now grown for 20 straight quarters. Best Buy, the victim of online comparison shopping that had consumers using it as a showroom, has been restructuring. It has been fighting back partly by matching prices of rivals and creating stores within stores that focus on certain categories like home appliances.