Best Buy Co (BBY.N) cut its full-year outlook, saying fourth-quarter sales would miss its expectations as the softer U.S. economy hurt January store traffic. Lower revenue for advanced televisions, MP3 devices, and video games will result in a modest fall in sales at stores open at least 14 months, or same-store sales, Best Buy said.
Best Buy now expects to earn US$3.05 to $3.10 a share for the year that ends March 1, down from a forecast of $3.10 to $3.20 a share given in December. Best Buy said it expects sales of nearly $40 billion for fiscal 2008 on same-store sales growth of 2.5 to 3%. It had previously forecast same-store sales to rise about 4%.
Best Buy said it would open 85 to 100 new stores in the United States and 40 to 50 stores internationally in the fiscal year that ends in 2009--moves that will add 12,000 retail jobs in various areas. The majority of the U.S. store openings would be in existing markets, and are expected in time for the 2008 holiday shopping season, the company said. The global store openings are scheduled for Canada, China, and Mexico, and in Turkey during its 2010 fiscal year.