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Best Buy (BBY) is down 4.5% AH thanks to hhgregg's guidance cut. The fact hhgregg's (HGG) cut...

  • Tuesday, July 10, 2012, 5:59 PM ET
    Best Buy (BBY) is down 4.5% AH thanks to hhgregg's guidance cut. The fact hhgregg's (HGG) cut was blamed on weak video (i.e. TV) sales has to be especially worrisome to Best Buy investors, given hopes that sales of TV sets, which tend to be sales-intensive, would hold up relatively well against the e-commerce onslaught. Perhaps recent manufacturer efforts to limit discounts ended up backfiring.
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  • At least HHGregg's investors won't be shocked during earnings. Better to control the message and announce the earnings miss early... Otherwise, BBY will end up with the layoff's fiasco that wasn't properly handled last week.

    Then again, BBY will probably just figure a way to re-wicker the numbers so that the dismal sales somehow get factored into "restructuring costs."

    C'mon guys - the census data for each month of Q1 this year shows that sales are down. If you prepare your investors now, at least they won't be crushed after Q2...you might also want to revise that full year guidance downward as well while you're at it. At least you'll have all the other dismal retailers figures to give you some cover.
    10 Jul 2012, 08:26 PM Reply Like
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