Posted on 01/05/2007 7:28:09 AM PST by george76
Best Buy Co. turned in disappointing third-quarter results on Tuesday as the battle to sell flat-panel TVs, MP3s and other hot electronic gadgets has slashed prices and cut into profit.
the nation's largest home-electronics retailer said the "very competitive climate" -- plasma and LCD TV prices dropped 25% to 30% -- held its profit to $150 million, or 31 cents a share, up nearly 8% from last year's income of $138 million, or 28 cents a share, but short of Wall Street's expectations. That sent shares lower by 5% to $51.30.
The total results were mixed compared with Wall Street's forecast, but notably below the per-share profit expectation.
On a conference call with analysts, the retailer's top executives were unapologetic. "We understand that this is viewed as a miss," said Chief Executive Brad Anderson. "We are not disappointed in our performance. We realize we may have a contrarian point of view, but from our perspective we are having a healthy year."
(Excerpt) Read more at marketwatch.com ...
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And charges $35 to run a virus scan on your computer(or so my dad claims).
What does the network HGTV have to do with it? (just curious)
They make all their money from selling warranties and financing.
ht to dcnd9
Send email to
dawn.bryant@bestbuy.com
See the headline...
I did. It says HGTV, which is a network, not an electronic gadget. I read the article, and could find no further reference to it.
You are correct. Our firm was involved in a lawsuit against Best Buy and discovery revealed that some stores' entire profit margin was a result of the extended warranties they sell. But for these warranties those stores would would have been in the red.
To be sure, BBY's story is the same as all the retailers this year...decent sales but only because everyone heavily discounted.
HGTV is supposed to be "HDTV", or high def TV
Their CEO is a genuine patriot, having contributed significant dough to conservative candidates and causes.
Hey, you're the one who told me to "see the headline." If the headline makes no sense, it's not my fault.
Also, note that Best Buy is now selling MP3s (according to the article, anyway).
Thank the new bankruptcy laws for Best Buy's problems. Because it is true that they make all their money from extended warrenties and financing, they have been hurt by marginal consumers thinking twice before going into long term debt for toys. Best Buy needs broke people who need instant gratification, for them to succeed in straping them with a high interest loan for that 50" HDTV that they cant afford, but would have otherwise just defaulted on with no penalties. Best Buy would get the write off on the debt as well.
Shhhhh. Let these people delight in their glee by thinking that a Christian boycott of Best Buy made the retail giant suffer, feel agony, regret, shame and sorrow for their failure to exploit religion as a part of their marketing plan.
My mistake.
It should have been : HDTV
;)
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