Consumer electronics retailer Best Buy on Thursday reported less than expected third-quarter results and forecast holiday sales profit lower than Wall Street estimates.
One the stock market today, Best Buy shares fell 3.6% to close at 55.25 on the.
Richfield, Minn.-based Best Buy earned an adjusted 78 cents a share, up 30% year over year, on sales of $9.32 billion, in its fiscal third quarter it earned up 4%.
For the fourth quarter, its adjusted earnings’ forecast was $1.89 to $1.99 per share however, analysts’ common expectation was $2.03 per share.
Best Buy’s same-store sales also rose 4.4% in the quarter ended Oct. 2, well short of analysts’ consensus expectation of 4.8 percent.
Best Buy Chief Executive Hubert Joly said that the company’s third quarter was impacted by the late launch of Apple’s iPhone X smartphone as well as hurricanes in Texas and Florida. Joly also claimed that due to Apple’s decision to launch its smartphone later in the year, the company lost more than $100 million in quarter’s revenue.
Now, the company says it will sell the high-end phone at its original price but only with installment process.
Joly said in a statement, “Looking ahead, we are very excited about our plans for holiday, including a curated assortment of great new technology products, free shipping with no minimums, and a range of new capabilities such as our new in-home advisor program, an updated gift center, and same-day delivery in 40 cities.”