Skip to Content

Here’s Why Shares of Best Buy Are Tanking

January 14, 2016

Retailers Offer Deep Discounts On Annual Black Friday Shopping DayRetailers Offer Deep Discounts On Annual Black Friday Shopping Day
Holiday shoppers at a Best Buy during the 2015 holiday shopping season.Photograph by Joshua Lott — Getty Images

Best Buy (BBY) said it expected its U.S. sales to fall by about 1.5% in the current quarter due to weak demand for mobile devices, scanners, and printers in the holiday season.

The largest U.S. consumer electronics retailer’s shares fell 10% in premarket trading on Thursday.

The company’s U.S. comparable sales, excluding the impact of installment billing plans, fell 7.2% in the mobile phones and computing products category in the nine weeks ended Jan. 2.

The category had accounted for nearly half of Best Buy’s U.S. sales in the third quarter.

Best Buy, which has been facing intense competition from online retailers such as Amazon (AMZN), had earlier said it expected U.S. revenue to be near flat in the fourth quarter.

The company said its total comparable sales, excluding the impact of installment billing plans, fell 1.4% in the nine weeks ended Jan. 2. Comparable sales rose 1.8% in the corresponding period last year. Revenue fell 3.6% to $10.96 billion.