Best Buy: “Toughest …Ever”

Calling the current pre-holiday retail market “the toughest retail environment it has ever seen” according to an AP report, Best Buy Co. (NYSE:BBY) announced today it is taking down fiscal year 2009 (ending February) expectations from $3.25-3.40 per share to $2.30-2.90.

The Zacks consensus had been $2.99, but that’s only part of the story. Analysts had been racing to downwardly revise estimates for the fiscal year — 11 in all, in just the past 30 days.  This time last quarter, the Zacks consensus estimate was looking for $3.31 per share.  And this guidance comes prior to November quarter results and after Best Buy’s moderate 16% miss in the August quarter (Q2).

As recently as late September, shares of Best Buy Company were trading over $40 per share.  This morning, the stock is down 9% to around $21.75 per share.  “Toughest environment ever,” indeed.

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