Best Buy Holiday Sales Fall, Stock Tumbles

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Best Buy

Despite its efforts to match any price, Best Buy’s U.S. same store sales fell 0.9 percent over the holidays, missing analysts’ expectations of a gain of 0.7 percent.

The company cited a “disappointing” smartphone market, supply issues on some products and a decline in store traffic.

It also said the fiercely competitive pricing seen at retail in general over the holidays did not produce an increase in demand.

The news sent Best Buy stock tumbling up to 33 percent to $25 before the markets opened, said Bloomberg.

On the plus side, the company saw a 23.5 percent jump in its online sales.

Best Buy was not the only consumer electronics chain to see weak holiday sales.

HHGregg said its same store sales fell 11 percent overall with a 20 percent drop in consumer electronics, said the Wall Street Journal.

Best Buy’s results were for the 9-week period ended January 4.

You can see the full report here

Source: Best Buy, The Wall Street Journal, Bloomberg

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