Retailers, consumers and prices
Check Out Line: Best Buy’s claims on market share gains
Check out the holiday sales results from Best Buy.
The top U.S. consumer electronics chain said its December same-store sales rose 8.2 percent, recovering from last year’s 6.5 percent drop.
The company attributed the gains to strong demand for notebook computers and mobile phones, and said it believes its domestic segment continued to “experience strong market share gains” for the month ended Nov. 30.
In a research note, Bernstein analyst Colin McGranahan said general market expectations were for Best Buy’s December same-store sales to rise between 8 and 10 percent.
“Overall we think the sales will be viewed as in-line to slightly below general expectations,” he wrote.
McGranahan said that given the stronger performance in Best Buy’s lower margin home office business (which includes notebook computers and mobile phones) and relative weakness in higher-margin categories, “negative gross margin mix will limit EPS upside.”
For its part, Best Buy said it still expects 2010 revenue and earnings within previously announced guidance ranges. On Dec. 15, Best Buy said it expected 2010 earnings in the range of $3.00 to $3.15 a share excluding items. The company is scheduled to report fourth-quarter results and provide its initial 2011 earnings and new-store opening forecast on March 25.
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