Best Buy Plunges on Shortfall

The electronics retailers took a beating Thursday as the sector's trendsetter warned once again that its performance won't be up to Wall Street's expectations.

Shares in industry leader Best Buy (BBY Quote) plunged 38% Thursday after the company lowered its second-quarter profit forecast. The shortfall sparked a rout in rivals such as Circuit City (CC Quote), which dropped 12%, in sympathy.

Adding insult to injury, a smaller competitor to the big-box stereo sellers is preparing to close many of its stores. The Wiz, a New York regional chain run by cable television operator Cablevision (CVC Quote), will shut more than half of its 43 stores as its cash-strapped parent tightens its belt. ...