Best Buy Predicts Weaker Holiday Sales

Best Buy is predicting that electronics (including video game hardware and software) sales during the 2014 holiday shopping season will be down (at least for them by single digits) compared to the same period in 2013, and that it will not see a big sales lift from the iPhone 6. The company made this prediction during a conference call to discuss its latest financial results.

Best Buy reported $8.9 billion in revenue for the second quarter, a 1.5 percent decrease compared to the $9.3 billion reported this time last year. Net income for the quarter was $146 million. Domestic same store sales fell 2 percent, while sales in consumer electronics fell 2.5 percent. Domestic online comparable sales increased 22 percent for the quarter.

During a conference call to discuss Q2 results, Best Buy CFO Sharon McCollam noted that industry-wide declines in many consumer electronics categories, including mobile phones, have made the company about the second half of 2014.

"Absent any change in these declining industry trends and with limited visibility to new product launch quantities, we continue to expect comparable sales to decline in the low-single digits in both the third and fourth quarters," she said.

Source: Business Investors Daily

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One comment

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    Neo_DrKefka says:

    Best Buy had an extremely good year when the board was fighting against getting the EX-OWNER/CEO who tried to get his company back. During this time they had revamped the video game section they even completely ditched the receipt checkers

    Best Buy had become my alternative to Gamestop for a while and this is even after Amazon gained on the market.

    Now it seems Best Buy after they secured there positions of the upper echelons of the company it seems they do not wish to improve anymore rather to revert to policies that enrage customers or just do not work, period.

    • The Yellow Shirts are back
    • The receipt checkers are back
    • The Best Buy Credit Card switched seamlessly from HSBC to Capitol One but Best Buy had made an agreement with a consumer unfriendly Capitol One in which forced everyone to register and lost payments for those making payments.

    At this point if Best Buy wants to improve the shareholders need to hold those making the decision making accountable. Amazon is a dying horse whether or not its big now means nothing eventually legislation will kill it. The only reason Amazon is big now is because it does not tax you in most cases. Once legislation eventually hits them the major reason for shoppers to go to Amazon will be gone and big box stores can make a come back.

    But why deal with a Big Box store when you get bad customer service when you could just go to a place at Amazon and get zero customer service and less headaches.

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