Best Buy reports weak holiday shopping results, outlook

NEW YORK (AP) — Best Buy's shares sank today after the nation's largest consumer electronics chain reduced its sales outlook for the fourth-quarter as it reported weak holiday business in mobile phones and personal devices.

The Minneapolis-based company said it now expects a larger drop in fourth-quarter revenue, though the company improved its outlook for operating income. Best Buy shares tumbled almost 12 percent in morning trading.

The disappointing results underscore the challenges for Best Buy as it tries to re-energize sales growth that has been inconsistent.

Best Buy said that domestic same-store-sales, a key measure of a retailer's health, fell 1.2 percent in the nine-week period ended Jan. 2 compared with growth of 3.4 percent during the same period a year prior.

Online revenue rose 12.6 percent, compared with growth of 13.4 percent a year ago. Looking ahead, the company expects a 1.5 percent decline for its domestic business, compared with its previous expectations for a nearly flat performance.

During the nine-week period, computing and mobile phones fell 7.2 percent, but appliances rose 13.4 percent and consumer electronics rose 4.3 percent.