Best Buy Co. Inc.’s reported lower-than-expected quarterly results on weak demand for televisions, but stood by its fiscal-year revenue outlook.
The world’s largest consumer electronics chain said it was well-positioned for the upcoming holiday season.
Best Buy, whose shares fell nearly 1 per cent, faces cut-throat competition from discounters such as Wal-Mart Stores Inc. as well as online chains such as Amazon.com Inc .
Amazon’s prices on televisions remain 12 per cent to 14 per cent below Best Buy’s, Deutsche Bank analyst Mike Baker said recently.
Best Buy has now decided to offer products online from other sellers through its new third-party Marketplace as it tries to better compete with Internet rivals Amazon and eBay Inc.
In the second quarter ended Aug. 27, sales were essentially flat at $11.3-billion, while analysts expected about $11.5-billion.
Sales at stores open at least for 14 months fell 2.8 per cent in their fifth straight quarterly decline.
Still, the retailer, seen as a bellwether in consumer electronics, said it continued to expect annual revenue of $51-billion to $52.5-billion.
Second-quarter net profit fell to $177-million, or 47 cents a share, from $254-million, or 60 cents a share, a year earlier. Analysts on average were expecting earnings of 53 cents a share, according to Thomson Reuters I/B/E/S.
The results echoed those from smaller rival hhgregg Inc as well as office supply chains Office Depot Inc. and OfficeMax Inc, which reported weak sales of technology products in the key back-to-school season.
Shares of Best Buy were down 0.6 percent at $24.80 in trading before the market opened. The results echoed those from smaller rival hhgregg Inc as well as office supply chains Office Depot Inc. and OfficeMax Inc. that reported weak sales of technology products in the key back-to-school season.