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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