Best Buy Co. reported a 4.4% drop in quarterly profit, saying it is losing market share and domestic same-store sales slid on weak television and videogame sales.
The results sent shares of the biggest U.S. electronics retailer tumbling 14.4% to $35.69 in Tuesday morning trading on the New York Stock Exchange.
Best Buy had been reporting strengthening results of late. The most recent figures, however, reveal the fragility of that improvement, given continued high unemployment and consumer concerns about spending. Domestic same-store sales fell 5% in the fiscal third quarter, as the company saw sharp declines in television and videogame sales.
While sales of items such as DVDs and CDs are down at most stores, Best Buy is also losing ground in categories that are otherwise popular. The company surrendered 110 basis points of market share in the most recent quarter, as consumers turned to mass merchants and Internet sellers for televisions and competitors such as GameStop Corp. for videogames.
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