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Tuesday, December 14, 2010

Best Buy TV sales still soft

Best Buy just reported it missed its quarter numbers.

One of the noted areas that missed was TVs. It missed by double digit unit decline and mid single digit sales revenue decline.

The inventory reported at this team does not seem to be much higher then in prior years, but with a miss in the low double digit in units it is hard to imagine they are where they want to be. Some estimate they are 12% over inventory.

There appears to be market share loss to competitors such as Amazon and Wal-Mart. Best Buy's overall market share has been reported to have declined 100 bps in the quarter.

Best Buy has also guided Feb reporting below expectation.

JZ

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