NEW YORK (

TheStreet

) --

Best Buy

(BBY) - Get Report

was not a buy in the second-quarter, missing analysts' expectations.

The news sent shares of the electronic retailer tumbling 3.5% before the bell to $39.

But Best Buy's bad news hardly comes as a shock.

Analysts predicted the company could miss forecasts

, as it continues to see shoppers shy away from big-ticket purchases and faces increasing competition from discounters like

Wal-Mart Stores

(WMT) - Get Report

and

Costco Wholesale

(COST) - Get Report

.

During the quarter, Best Buy's profit dropped 22% to $158 million, or 37 cents a share, down from $202 million, or 48 cents, in the year-ago period. Analysts expected the company to earn 41 cents.

Revenue grew 12.5% to $11.02 billion from $9.8 billion from European gains and the addition of 170 stores over the past 12 months.

Same-store sales slipped 3.9%, weighed down by gaming, digital camera, music and movies. The only areas Best Buy saw some gains were in notebook computers, mobile phones and flat-panel TVs.

Despite missing Wall Street's expectations, results came in slightly better than management had forecast. As a result, the company raised the bottom end of its full-year forecast to $2.70 to $3.

-- Reported by Jeanine Poggi in New York

Follow TheStreet.com on

Twitter

and become a fan on

Facebook.

Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.