Best Buy is suffering and so is the market..

[BigMel]

Best Buy lowers outlook
In Best Buy's earnings announcement today, the electronics giant said fiscal 2009 earnings will be between $2.30 and $2.90 per share -- well below a previous forecast of between $3.25 and $3.40 per share, as well as below the consensus estimate for $3.02 per share.

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"Seismic changes in consumer behavior have created the most difficult climate we've ever seen. Best Buy simply can't adjust fast enough to maintain our earnings momentum for this year," CEO Brad Anderson said in a statement.

Best Buy shares slumped 6.7%, to $22.28 this afternoon.

The retailer said it expects same-store sales to decline by 1% in fiscal 2009, with revenue coming in between $43.7 billion and $45.4 billion. Analysts expect revenue of $46.2 billion.
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Like I have been saying for the last three months--BB needs to act diffeently than they have in the past..they have done very little to motivate people to get in there and shop...notwithstanding the need to achieve proper margins...they have refused to entice the average consumer to come and shop..no really good deals....over priced blu-rays, etc. In the last 4 months I have purchased about 70+ blu-rays- 90% from Amazon and Columbia House and I have split the rest between BB and CC. I used to buy 90% BB. It seems as times have gotten harder they rely too much on their Brand and not enough on the need to couple that strong brand with aggressive incentives...I am not saying give away the farm but they continue to act like it was 2007. Times are touch, people are really bargin shopping and they need to step up to the plate or they will continue to bleed to the Amazon's of the world..I just spent 1500 at Amazon in the last week on products I would normally buy at BB. Blu-Ray players, Blu-Rays, Adaptors, Asus Computer, etc..I love BB but they are killing themselves

[mikejet]

This means bigger and better sales and promotions coming! REJOICE!

[BACsader]

Originally Posted by mikejet

This means bigger and better sales and promotions coming! REJOICE!

That is not necessarily true. In fact, that is not what that means at all.

[benricci]

Yeah, it doesn't mean that at all.

[mikejet]

They have no choice, it would be the only way to bring customers into the store. Right now they have 18 months no interest on all purchases over $499. I expect more once Black Friday comes around.

[benricci]

Originally Posted by mikejet

They have no choice, it would be the only way to bring customers into the store.

Wrong, slashing prices is a short term win and is usually a sign of desperation or imminent liquidation. It's not the first move you make when you report a bad quarter, in a bad economy.

The CEO acknowledges a "seismic shift" in consumer patterns, meaning they need to change a number of strategies and corporate paradigms to remain successful.

[$plash]

if Best Buy is "suffering" then Circuit City must be on life support

[Kryptron]

Originally Posted by mikejet

They have no choice, it would be the only way to bring customers into the store. Right now they have 18 months no interest on all purchases over $499. I expect more once Black Friday comes around.

They can't just start cutting prices because they are already taking a loss, what good is bringing a lot of customers in to the store if what they buy doesn't leave the store any profit?
Most of these stores make their profit of accessories, services plans, satellite sign ups,cellphone sign ups and store credit card sales.

[SquidPuppet]

Intels warning after the bell didnt help either.

AP
Intel slashes 4Q outlook on dimming PC demand
Wednesday November 12, 6:06 pm ET
By Jordan Robertson, AP Technology Writer
Intel chops more than $1 billion from 4Q sales forecast, profits wounded by dimming PC demand


SAN FRANCISCO (AP) -- Intel Corp. whacked more than $1 billion from its fourth-quarter revenue forecast and ratcheted down its profit expectations because a clampdown on spending is reducing demand for its chips.

Intel's announcement Wednesday illuminates how the economic crisis is rippling across industries. As consumers and businesses cut back on buying all kinds of things, their reduced purchases of PCs are harming computer makers and their suppliers. Intel is the world's largest supplier of microprocessors, the brains of personal computers, with roughly 80 percent of the global market.
Intel blamed "significantly weaker than expected demand in all geographies and market segments" and PC makers buying fewer new chips as they burn through existing inventory to save money.

[davidxiphoid]

Originally Posted by benricci

Yeah, it doesn't mean that at all.

ive seen the black friday ad and the deals were just ok.. not good enough for me to get outta bed at 4 in the morning.

[brett_day]

Originally Posted by mikejet

This means bigger and better sales and promotions coming! REJOICE!

it probably means the opposite, they are going to have to increase their gross profit and have a bigger impact on their bottom line, which will probably mean fewer sales, layoffs and a general overhaul of the way the company runs!

CC filed for chapter 11 bankruptcy yesterday, that's even after the announced 150 stores that will be closing, if BB is not careful they might have to do the same, as will many other retailers! This is a bad time for any business

[Stiny-Ray2]

Originally Posted by mikejet

This means bigger and better sales and promotions coming! REJOICE!

Whooo i love it...i am wacthing a Plasma that i am going to pick-up for nothing. Seems like nobody goes inside the stores anymore. I went to the Mall the other Day and everybody was in the Food Court. How are some of these store even paying their employees anymore? Their is a Huge Supply but they are not in Demand. Buyers Market if you ask me.