The U.S.' largest electronics retailer also forecast weak same-store sales for the current quarter. Fred Katayama reports.
A surprising decline in sales at Best Buy. Weak demand for gaming consoles pulled down sales at existing stores in the holiday quarter, as did the lack of availability of products across categories. Wall Street had been expecting an increase at the U.S.' largest electronics retailer. Net revenue also fell. The outlook doesn't look much better. Best Buy sees same-store sales falling up to 2 percent in the current quarter. Two bright spots: international revenue rose due to growth in Mexico, and cost cutting helped drive up profit 21 percent. Moody's analyst Charlie O'Shea said, "Best Buy's ability to expand margins in Q4 in the face of what we characterized as one of the most promotional holiday seasons we have seen in the last 15 years, especially in Best Buy's key product categories, is impressive." Investors weren't buying Best Buy Wednesday, sending its shares down at the market open.