Best Buy's Disappoints on Holiday Sales, Lowers Margin Guidance
This year's holiday season was characterized by intense promotional activity aimed at getting consumers in the door, but it didn't work out so well for Best Buy.
Best Buy shares tumbled on Thursday after the consumer electronics retailer said that comparable store sales for the first nine weeks of the quarter fell 0.9% for its roughly 1,500 U.S. stores. Total revenue, which includes international business, fell 2.5% $11.5 billion. Competing on price to win customers ultimately hit Best Buy's margin. The company revised its forecast for operating margin saying it would now be 175-185 bps lower than last year's fourth-quarter margin. The Street's Laurie Kulikowski reports.
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