Best Buy Narrows Full-Year Earnings Forecast

Minneapolis, MN (AHN) - Just a day after reporting a 6.5 percent decline in December same-store sales, Best Buy Co., narrowed its fiscal 2009 earnings forecast as the electronics retailer tries to navigate through the economic recession.

The company now expects full-year earnings of $2.50 to $2.70 a share, which sheds 10 cents from each end of original guidance for $2.40 to $2.80 a share. Analysts are looking for earnings of $2.59 a share, according to Reuters Estimates.

Best Buy expects same-store sales for fiscal 2009 to be 2 percent to 3 percent lower. The consumer electronic segment has weighed on results through the first three quarter, same-store sales for the segment are down 8.7 percent.

The company did say sales for the month ending Jan. 3, rose 4 percent compared to the same period last year. Internet sales jumped 34 percent during the same time frame.

Working in the company's favor is the bankruptcy of rival Circuit City; the failing electronics chain has already closed 155 U.S. stores as it tries to sell itself to a suitable buyer. Picking up a chunk of Circuit City's market share may help Best Buy soften the impact from a weak retail environment.

Shares of Best Buy are 5.4 percent lower on the news to $28.02 in Friday afternoon trading.