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After Best Buy issued a 3Q earnings warning that it would not be hitting its numbers, shares in the company fell nearly 39% to close at $32.06.
Thursday, November 9, 2000

BEST BUY SAYS GOODBYE
TO STOCK PRICE

Retailer Stock Price Drops On Earnings Report, Offers Free Limp Bizit CD To Shareholders
As our cousins in Florida say, numbers is a funny thing.

After Best Buy issued a 3Q earnings warning that it would not be hitting its numbers, shares in the company fell nearly 39% to close at $32.06. Blaming a slowing economy and an increase in promotional costs (one would surmise those expenditures include selling hot new CDs like the Limp Bizkit record for $9.99), the retailer reported that it expected earnings for fiscal 3Q, which ends Nov. 25, to be 27 cents a share, though 4Q earnings should bounce back to 90 cents.

According to First Call/Thomson Financial, analysts were looking for earnings of 44 cents a share for the third quarter and $1.02 a share for the fourth.

There is good news in Best Buy's report: Same-store sales look to be up 5% in the quarter, as expected, and third-quarter sales will increase to $3.8 billion from $3.11 billion a year ago. Last year, 3Q same-store sales were up 9%. A full copy of the financial data is available for 99 cents with every purchase of a microwave oven and a vote for Pat Buchanan.

An expectation that spending is slowing also sent Circuit City down $1.31, just under 10%, to $12.94.

Anybody wanna buy a Backstreet Boys record...cheap?

 
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