Wednesday, December 18, 2002
Best Buy Co. cut its profit forecast Tuesday because of disappointing holiday sales at its music stores, and Circuit City Stores Inc. had a third-quarter loss as it cut prices and sold fewer higher-profit items, the companies reported.
Best Buy, the largest U.S. electronics retailer, said profit this quarter would be 5 cents lower than its previous estimate, sending its shares down 5.5%. Shares of rival Circuit City fell 11%.
Both retailers are cutting prices and offering interest-free financing to boost sales but the move is hurting the bottom line.
Best Buy's third-quarter net income rose to $85 million, or 26 cents a share, as sales increased 16% to $5.5 billion, the company said. Circuit City had a net loss of $17.8 million, or 9 cents, compared with a profit of $27.7 million, or 10 cents, a year earlier. Sales gained 7% to $2.42 billion.
By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved
|
