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 ...
But Christmas occurs during the 4th quarter, these figures are from the 3rd quarter.
And Best Buy is usually among the worst if you have problems that need to be resolved. I would never buy a big-ticket item there. Tapes, CDs whatever, occasional computer supply (cable or something) because it's convenient, but that's about it.
Anyone who buys ANY cables/accessories from Best Buy should have their head examined.
D'oh!
Even at half price they're probably not worth the money. Unless you're going hardcore bleeding edge (like getting a DVD player the first year or two they existed) most household electronics are cheap to replace.
I went in yesterday and said "Merry Christmas" to everyone I saw and they looked at me like I was crazy!
I've only gotten extended warranties on a projection TV I bought years ago, and intended to keep for years. (Back then the prices weren't falling), but I got 75% knocked off of the contract price they quoted, so I figured it might be a good deal.
As it turned out it was. I easily saved several hundred dollars on repairs. Sometimes they do make sense. But in general, they don't at any price. Just depends on how long you want to keep the thing, and what you think the replacement cost will be.
Before the next party can begin, debt must be paid down and people start saving again.
BUMP
I'm pretty sure it's supposed to be HDTV. I got a chuckle out of it, too.
My experience with laptops, is that when you take it in for repair, be prepared to be without it for several weeks. I had to return mine several times to COMPUSA before it actually got fixed. I am never buying anything from them ever again.
So if indeed you cannot afford being without a laptop for several weeks while getting repaired, it probably doesn't make sense to purchase a warranty extension, with prices falling, better off just getting a replacement.
I got an extended warranty on my first DVD player and that was worth it because the warranty included free cleaning and I live in the dust capital of the world. With some fragile stuff it's worth it too. But overall it's better to skip it.
BBY was reporting on ITS third quarter, which is the fourth quarter of the year. Many companies do not match their fiscal year to the calendar year.
I'm gonna go against the grain and say,it's because Wal-Mart is ramping up their electronics departments.They can't compete with Wal-Mart,just as the grocery stores couldn't.Wal-Mart will put alot of these electronics stores out of business.
We agree.
Business cycles will happen.
That would be the Wal Mart effect!
Wal-Mart is ramping up their electronics departments
That would be the Wal Mart effect!
$688 at WalMart
Samsung 32" Widescreen LCD HDTV w/ Built-in Digital Tuner, LN-S3238D
$897.00 Was: $1,194.00
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