Best Buy Lowers Guidance on Hurricanes13 Oct, 2005 By: Holly J. Wagner
Best Buy lowered projected earnings for the quarter ended Aug. 27 by 2 cents per share, citing the costs of Hurricanes Katrina and Rita.
In a recent filing with the Securities and Exchange Commission, the company said it would earn between 26 cents and 28 cents per share for the quarter, below the previous estimate of 28 cents to 30 cents per share. The retailer said 42 stores and a distribution center were affected, but all had been reopened by Oct. 6.
The company attributed a 7.2 percent decline in same-store sales of entertainment software to “weaker music and movie sales due to price competition from mass merchandisers and softness in the performance of new releases, partially offset by mid-single-digit growth in video gaming.”
The chain also noted it is expanding its Geek Squad force to include more home theater installers.