A disappointing growth outlook for Best Buy Co. Inc. (BBY) sent fellow retailers into the red on Tuesday, Sept. 19.
Best Buy targets $43 billion in full-year revenue by fiscal 2021, a roughly 9% increase from $39.4 billion in fiscal 2017, the company said before its investor presentation on Tuesday. The electronics retailer also hopes to eliminate $600 million in costs by the end of fiscal 2021.
But largely below-consensus earnings guidance sent shares lower. Best Buy anticipates operating income of $1.9 billion to $2 billion, a disappointing growth outlook compared with Goldman Sachs' current-year forecast of $1.93 billion. Adjusted earnings targets of $4.75 to $5 a share also came in on the weak side compared with Thomson Reuters consensus of $4.97 a share.
Best Buy shares tumbled more than 6%, pulling down retailers such as Macy's Inc. (M) , J.C. Penney Co. (JCP) , Sears Holding Corp. (SHLD) , and Dillard's Inc. (DDS) . The S&P Retail SPDR ETF (XRT) declined 1%.
More of What's Trending on TheStreet: