While Amazon rolled, Best Buy (BBY) shares tumbled 30% (or $4 billion in market value) after the world’s largest consumer electronics announced dismal first- quarter fiscal 2014 earnings.
While U.S. online sales rose 24% to $1.32 billion during the holidays, they weren’t enough to counter other declines. In the nine weeks to Jan. 4, Best Buy reported sales of $11.45 billion which was down 2.5% compared to a year earlier. After a year of improvements, domestic sales fell by 1.5% to $9.75 billion, due to a 0.9% decrease in comparable store sales.
International revenues also fell 8.1% to $1.70 billion due largely to 35 store closures in China and Canada. Best Buy also blames the lowering of prices by competitors as the main driver of the fall-off in revenue as well as the shortage of some high-end phones.