Analyst: Despite Cost-Cutting, Best Buy Can’t Keep Up
The following is an excerpt from a report compiled by Michael Pachter of Wedbush Securities.
Best Buy (NYSE:BBY) will report fiscal Q1:15 results before market open on Thursday, May 22, and will host a conference call at 5 a.m Pacific time (Webcast: http://www.investors.bestbuy.com).
Q1 revenues and earnings are likely to be at or below consensus estimates. We expect revenue of $9.24 billion and EPS of $0.20, vs. consensus for revenue of $9.20 billion and EPS of $0.20. We expect comps to be at or below our estimate of down 1.3 percent (domestic down 1.1 percent, international down 2.8 percent).
Several electronic retailers have cited several headwinds during the quarter driving negative comparable-store sales growth. Aaron Rents and hhgregg both pointed to extreme weather in January, February, and the beginning of March as negatively impacting traffic and operating performance during the quarter. Additionally, hhgregg comparable-store sales results for consumer electronics (down 18.9 percent) and computing and wireless (down 22.6 percent) categories were horrendous, suggesting to us that Best Buy suffered a similar experience.