Best Buy (BBY) Cuts FY2009 Guidance
Best Buy cut their guidance this morning. FY2009 (February) goes to $2.30-2.90 range vs. $3.02 est., a 13.9% miss. Revenue goes to $43.7-45.5B vs. $46.23B est., a 3.5% miss.
“Since mid-September, rapid, seismic changes in consumer behavior have created the most difficult climate we’ve ever seen. Best Buy simply can’t adjust fast enough to maintain our earnings momentum for this year,” said Brad Anderson, vice chairman and chief executive officer of Best Buy
Same-store sales declined 7.6% in October vs. a 2.4% decline in September. They project November 2008 to February 2009 same-store sales to decline 5 to 15 percent. Their guidance is predicated on same-store sales being comparable to October’s 8% decline.
Previous guidance for FY2009 was $3.25 to 3.40 in EPS with same-store gain of 2-3%. They plan to report November same-store sales on their Q3 conference call on December 16th.
Obviously things are getting materially worse for anything in the consumer discretionary sector in the last few weeks. On the bright side, Best Buy is still in the black and making money vs. other retailers that are going bankrupt. *Cough*