Best Buy Slashes Fiscal 2009 Profit Outlook

Posted by Kris | Wednesday, November 12, 2008 | | 0 comments »

You don't need to  be a fortune teller to tell that next year is going to be a bad year. Circuit City has already RIP .Best Buy is able to outlast its closest rival and presumely will dominate the consumer electronic sales market. But the overall outlook given by the company is still gloomy. The stock price surely going to tank more.

Best Buy slashes fiscal 2009 profit outlook because of 'most difficult climate' in retail

MINNEAPOLIS (AP) -- Electronics retailer Best Buy Co. says it is sharply cutting its fiscal 2009 earnings outlook below analyst estimates amid what the company called the toughest retail environment it has ever seen.

Richfield, Minn.-based Best Buy expects earnings per share between $2.30 and $2.90 for the fiscal year ending in February, down from a prior estimate between $3.25 and $3.40 per share.

The retailer forecast revenue between $43.7 billion and $45.4 billion, as well as 1 percent decline in same-store sales, or sales at stores open at least 14 months.

Analysts expect earnings of $3.02 per share and sales of $46.23 billion for fiscal 2009, according to a Thomson Reuters survey.

Best Buy's same-store sales dropped 7.6 percent in October. Same-store sales are a closely watched performance indicator because they measures sales at existing locations rather than newly opened ones.

Chief Executive Brad Anderson said "seismic" changes in consumer behavior have created "the most difficult climate" ever seen by the company.

Best Buy also says the stronger dollar will weaken revenue and profit from its international segment more than previously expected.