Best Buy Co.'s third-quarter net income fell more than expected as it lost sales of TVs and laptops to competitors. It also cut its full-year outlook Tuesday.
Shares of the largest U.S. electronics chain fell nearly 12 percent in premarket trading.
The company, which benefited when Circuit City went out of business last year, is facing stepped-up competition from online and discount stores.
Best Buy said its market share in TVs, mobile computing and video game software fell. Americans are also buying fewer TVs and other electronics. Best Buy said there were larger than expected industry declines in key U.S. consumer electronics categories for the three months ended Oct. 31.
Revenue in stores open at least 14 months fell 5 percent in the U.S., hurt by lower revenue from TVs and entertainment hardware and software. Best Buy sold fewer TVS, and prices have fallen as the industry works through a glut in TV supply.
That was partly offset by strength in mobile phones and tablet computers.
Net income in the fiscal third quarter, which ended Nov. 27, the Saturday after Thanksgiving, fell 4 percent to $217 million, or 54 cents per share, from $227 million, or 53 cents per share, last year. Analysts polled by Thomson Reuters, on average, expected 61 cents per share.
Revenue fell 1 percent to $11.89 billion, from $12.02 billion last year. Analysts expected revenue of $12.45 billion.
Revenue in stores open at least 14 months fell 3.3 percent.
The measure is considered an important measure of a retailer's financial health because it excludes stores that open or close during the period.
The company now expects net income of $3.20 to $3.40 per share, from a prior range of $3.55 to $3.70 per share, hurt by lower revenue in the U.S. Analysts expect $3.59 per share. Share fell $4.88, or 11.7 percent. To $36.82 in premarket trading.
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