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Best Buy shares plunge 30% after reporting abysmal holiday sales

Published 01/16/2014, 08:04 AM
Updated 01/16/2014, 08:04 AM
Best Buy shares tumble after reporting abysmal holiday sales

Investing.com - Shares of U.S. electronics retailer Best Buy lost nearly a third of their value in pre-market trade on Thursday, after the company reported disappointing holiday sales figures.

The company said its total revenue dropped to USD11.45 billion in the holiday period from USD11.75 billion a year earlier. Same-store sales fell 0.8% in the nine weeks ended January 4, confounding expectations for a rise of 0.5%.

The retailer said price competitiveness came at a higher-than-expected cost and cut its view on its fourth-quarter non-GAAP operating income rate, saying it will be 175 to 185 basis points lower than last year.

"I have complete faith in the long-term strategy and I am confident that management is taking the steps required to win and position the company for a successful future," Best Buy Founder and Chairman Emeritus Richard Schulze said in a statement after the results.

Best Buy shares tumbled 27.7% in pre-market trade.

Meanwhile, U.S. stock futures pointed to a lower open. The Dow Jones Industrial Average futures pointed to a loss of 0.2% at the open, S&P 500 futures dipped 0.25%, while the Nasdaq 100 futures indicated a downtick of 0.2% at the open.

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