Posted on 01/05/2007 7:28:09 AM PST by george76
Best Buy Co. turned in disappointing third-quarter results on Tuesday as the battle to sell flat-panel TVs, MP3s and other hot electronic gadgets has slashed prices and cut into profit.
the nation's largest home-electronics retailer said the "very competitive climate" -- plasma and LCD TV prices dropped 25% to 30% -- held its profit to $150 million, or 31 cents a share, up nearly 8% from last year's income of $138 million, or 28 cents a share, but short of Wall Street's expectations. That sent shares lower by 5% to $51.30.
The total results were mixed compared with Wall Street's forecast, but notably below the per-share profit expectation.
On a conference call with analysts, the retailer's top executives were unapologetic. "We understand that this is viewed as a miss," said Chief Executive Brad Anderson. "We are not disappointed in our performance. We realize we may have a contrarian point of view, but from our perspective we are having a healthy year."
(Excerpt) Read more at marketwatch.com ...
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And charges $35 to run a virus scan on your computer(or so my dad claims).
What does the network HGTV have to do with it? (just curious)
They make all their money from selling warranties and financing.
ht to dcnd9
Send email to
dawn.bryant@bestbuy.com
See the headline...
I did. It says HGTV, which is a network, not an electronic gadget. I read the article, and could find no further reference to it.
You are correct. Our firm was involved in a lawsuit against Best Buy and discovery revealed that some stores' entire profit margin was a result of the extended warranties they sell. But for these warranties those stores would would have been in the red.
To be sure, BBY's story is the same as all the retailers this year...decent sales but only because everyone heavily discounted.
HGTV is supposed to be "HDTV", or high def TV
Their CEO is a genuine patriot, having contributed significant dough to conservative candidates and causes.
Hey, you're the one who told me to "see the headline." If the headline makes no sense, it's not my fault.
Also, note that Best Buy is now selling MP3s (according to the article, anyway).
Thank the new bankruptcy laws for Best Buy's problems. Because it is true that they make all their money from extended warrenties and financing, they have been hurt by marginal consumers thinking twice before going into long term debt for toys. Best Buy needs broke people who need instant gratification, for them to succeed in straping them with a high interest loan for that 50" HDTV that they cant afford, but would have otherwise just defaulted on with no penalties. Best Buy would get the write off on the debt as well.
Shhhhh. Let these people delight in their glee by thinking that a Christian boycott of Best Buy made the retail giant suffer, feel agony, regret, shame and sorrow for their failure to exploit religion as a part of their marketing plan.
My mistake.
It should have been : HDTV
;)
One of my points was to say that retailers who disrespect their customers may lose some of their customers.
http://www.snopes.com/politics/christmas/bestbuy.asp
In the middle of this controversy, Best Buy took a strong stand against Christmas. Many of us are boycotting them.
Thanks.
We have choices.
Many of us choose to spend our money at retailers who do not take stands against us.
It's been my experience that once a store starts pushing warranty extensions and the like, they are in financial trouble ie: Montgomery Wards.
Don't show that you realize what the numbers ACTUALLY say....
That's verboten on boycott threads....
What discounting? Best Buy's HDTV prices are 15-20% above Internet retailers.
And actually the profit margin didn't even shrink, it was just lower than expected. This is one of those "no really it's bad news" stories.
< |:)~
once a store starts pushing warranty extensions and the like, they are in financial trouble ie: Montgomery Wards.
Best Buy's HDTV prices are 15-20% above Internet retailers.
Best Buy has been pushing warranty extensions since day one. It's a good way to make money on non-geeks buying electronics they don't understand. Non-geeks look at the price tag and think "I don't want to have to replace it if it breaks", geeks know the life cycle better and know that if it breaks in two years they'll be able to get the identical thing for half the price or something three times better for the same price. But the majority of customers are going to be non-geeks.
And I won't start on their "rebate" program.
"What discounting? Best Buy's HDTV prices are 15-20% above Internet retailers."
BINGO! Go directly to the front of the class.
"That's the beauty of it. If you can't afford it, f'ing finance it!!!" - Judge Reinhold, Ruthless People
Looks like they didn't push enough of their OUTRAGEOUSLY expensive Moster Cables. Anyone who buys ANY cables/accessories from Best Buy should have their head examined.
Best Buy Co. turned in disappointing third-quarter results on TuesdayIf you own BestBuy stock the company you're invested in has an 8% increase in profits but because of some nitwits at Wallstreet you lost money...That's the fraud at Wallstreet. The fact that they can manipulate stock value with phony "expectations" is in itself a fraud and cause for concern.------
held its profit to $150 million, or 31 cents a share, up nearly 8% from last year's income of $138 million, or 28 cents a share, but short of Wall Street's expectations. That sent shares lower by 5% to $51.30.
The total results were mixed compared with Wall Street's forecast, but notably below the per-share profit expectation.
The pressure from nitwits at Wallstreet for endless increased profits and it's hunger for your money is what drives corporate corruption and fraud.
HGTV, that's funny! Sounds like Jen and Angie need to do their homework!
Usually if you negotiate with the salesperson, you should be able to talk them down considerably on the cost of extended warranty service contracts. I've never paid full price for once, I've always got them to cut the price of the contract by at least half.
You're right! I went in yesterday and said "Merry Christmas" to everyone I saw and they looked at me like I was crazy!
Way back when I just starting in IT, I worked as a service tech at a "Beast" Buy. They did not care on whit on repairing things just on getting the warrantee and selling installs of software for $30. I was glad when I left.
But Christmas occurs during the 4th quarter, these figures are from the 3rd quarter.
And Best Buy is usually among the worst if you have problems that need to be resolved. I would never buy a big-ticket item there. Tapes, CDs whatever, occasional computer supply (cable or something) because it's convenient, but that's about it.
Anyone who buys ANY cables/accessories from Best Buy should have their head examined.
D'oh!
Even at half price they're probably not worth the money. Unless you're going hardcore bleeding edge (like getting a DVD player the first year or two they existed) most household electronics are cheap to replace.
I went in yesterday and said "Merry Christmas" to everyone I saw and they looked at me like I was crazy!
I've only gotten extended warranties on a projection TV I bought years ago, and intended to keep for years. (Back then the prices weren't falling), but I got 75% knocked off of the contract price they quoted, so I figured it might be a good deal.
As it turned out it was. I easily saved several hundred dollars on repairs. Sometimes they do make sense. But in general, they don't at any price. Just depends on how long you want to keep the thing, and what you think the replacement cost will be.
Before the next party can begin, debt must be paid down and people start saving again.
BUMP
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