NEW YORK (TheStreet) -- Best Buy Co. (BBY) shares are down 5.35% to $37.30 in trading on Monday following reports that the retail sector experienced an 11% decline in sales during the Black Friday weekend.
Analysts at Wedbush published a note on Sunday suggesting that the electronics retailer could see margin compression due to consistently lower Black Friday and Cyber Monday product pricing that it expects to increase sales volume but return lower profits.
The firm was also critical of the company's temporary mobile site malfunction on Friday though they suspect that Best Buy's bottom line was not hurt too badly with analyst Michael Pachter writing, "Given the fact that the servers were down for approximately an hour and a half on the morning of Black Friday, and given our view that the bulk of the website searches were for price comparison purposes, we suspect that Best Buy lost out on few Internet purchases during that time."
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