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Best Buy profit pinched by discounting ( HGTV, DSL, Flat screen tv's ) ( Merry Christmas )
MarketWatch ^ | 01/05/2007 | Jennifer Waters & Angela Moore

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 ...


TOPICS: Business/Economy; Extended News
KEYWORDS: afa; antichristian; bestbuy; bestbuyco; christmas; dsl; hdtv; hgtv; lcd; merrychristmas; mp3s; plasma; tv; waronchristmas; waronchristmas2006
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To: ContemptofCourt; Salvation; lowbridge

One of my points was to say that retailers who disrespect their customers may lose some of their customers.



Dawn Bryant, a spokeswoman at Best Buy Co. Inc., says their advertising will not be using the term "Merry Christmas."

While many other retailers have decided to return to the traditional "Merry Christmas", Best Buy will not be among them. Best Buy considers the use of "Merry Christmas" to be disrespectful.

http://www.freerepublic.com/focus/f-news/1737764/posts


21 posted on 01/05/2007 7:53:17 AM PST by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: dollar_dog; george76

http://www.snopes.com/politics/christmas/bestbuy.asp




In the middle of this controversy, Best Buy took a strong stand against Christmas. Many of us are boycotting them.


22 posted on 01/05/2007 7:55:48 AM PST by ansel12 (America, love it ,or at least give up your home citizenship before accepting ours too.)
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To: ansel12; PhilDragoo; potlatch

Thanks.

We have choices.

Many of us choose to spend our money at retailers who do not take stands against us.


23 posted on 01/05/2007 8:01:20 AM PST by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: joebuck

It's been my experience that once a store starts pushing warranty extensions and the like, they are in financial trouble ie: Montgomery Wards.


24 posted on 01/05/2007 8:02:46 AM PST by Yankereb
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To: ContemptofCourt

Don't show that you realize what the numbers ACTUALLY say....

That's verboten on boycott threads....


25 posted on 01/05/2007 8:04:36 AM PST by MikefromOhio (Go Bucks!!!!)
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To: george76

What discounting? Best Buy's HDTV prices are 15-20% above Internet retailers.


26 posted on 01/05/2007 8:05:27 AM PST by Mr. Jeeves ("When the government is invasive, the people are wanting." -- Tao Te Ching)
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To: ContemptofCourt

And actually the profit margin didn't even shrink, it was just lower than expected. This is one of those "no really it's bad news" stories.


27 posted on 01/05/2007 8:07:18 AM PST by discostu (we're two of a kind, silence and I)
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To: george76

< |:)~


28 posted on 01/05/2007 8:07:26 AM PST by martin_fierro (< |:)~)
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To: Yankereb; Coleus
bttt

once a store starts pushing warranty extensions and the like, they are in financial trouble ie: Montgomery Wards.

29 posted on 01/05/2007 8:08:18 AM PST by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: Mr. Jeeves
Another reality...thanks.

Best Buy's HDTV prices are 15-20% above Internet retailers.

30 posted on 01/05/2007 8:09:44 AM PST by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: Yankereb

Best Buy has been pushing warranty extensions since day one. It's a good way to make money on non-geeks buying electronics they don't understand. Non-geeks look at the price tag and think "I don't want to have to replace it if it breaks", geeks know the life cycle better and know that if it breaks in two years they'll be able to get the identical thing for half the price or something three times better for the same price. But the majority of customers are going to be non-geeks.


31 posted on 01/05/2007 8:11:54 AM PST by discostu (we're two of a kind, silence and I)
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To: RabidBartender

And I won't start on their "rebate" program.


32 posted on 01/05/2007 8:15:07 AM PST by TET1968 (SI MINOR PLUS EST ERGO NIHIL SUNT OMNIA)
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To: Mr. Jeeves

"What discounting? Best Buy's HDTV prices are 15-20% above Internet retailers."

BINGO! Go directly to the front of the class.


33 posted on 01/05/2007 8:18:46 AM PST by TET1968 (SI MINOR PLUS EST ERGO NIHIL SUNT OMNIA)
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To: Pukin Dog

"That's the beauty of it. If you can't afford it, f'ing finance it!!!" - Judge Reinhold, Ruthless People


34 posted on 01/05/2007 8:20:49 AM PST by dfwgator
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To: george76

Looks like they didn't push enough of their OUTRAGEOUSLY expensive Moster Cables. Anyone who buys ANY cables/accessories from Best Buy should have their head examined.


35 posted on 01/05/2007 8:21:47 AM PST by SengirV
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To: george76
Best Buy Co. turned in disappointing third-quarter results on Tuesday

------

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.

If you own BestBuy stock the company you're invested in has an 8% increase in profits but because of some nitwits at Wallstreet you lost money...That's the fraud at Wallstreet. The fact that they can manipulate stock value with phony "expectations" is in itself a fraud and cause for concern.

The pressure from nitwits at Wallstreet for endless increased profits and it's hunger for your money is what drives corporate corruption and fraud.

36 posted on 01/05/2007 8:22:31 AM PST by lewislynn (!)
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To: MizSterious

HGTV, that's funny! Sounds like Jen and Angie need to do their homework!


37 posted on 01/05/2007 8:22:53 AM PST by Lijahsbubbe
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To: discostu

Usually if you negotiate with the salesperson, you should be able to talk them down considerably on the cost of extended warranty service contracts. I've never paid full price for once, I've always got them to cut the price of the contract by at least half.


38 posted on 01/05/2007 8:23:26 AM PST by dfwgator
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To: george76
Best Buy bans MERRY CHRISTMAS in their stores

You're right! I went in yesterday and said "Merry Christmas" to everyone I saw and they looked at me like I was crazy!

39 posted on 01/05/2007 8:25:07 AM PST by Larry Lucido
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To: joebuck; Moonman62

Way back when I just starting in IT, I worked as a service tech at a "Beast" Buy. They did not care on whit on repairing things just on getting the warrantee and selling installs of software for $30. I was glad when I left.


40 posted on 01/05/2007 8:26:39 AM PST by Hydroshock ( (Proverbs 22:7). The rich ruleth over the poor, and the borrower is servant to the lender.)
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