STOCK WATCH: Best Buy plummets on weak holiday sales report
MINNEAPOLIS (KMSP) -
The holidays were not so merry for Best Buy, as sales plunged in both November and December by 0.8 percent in stores open at least one year. The weak sales report caused Best Buy stock to tumble 29 percent Thursday.
Best Buy CEO Hubert Joly blamed decreasing demand for consumer electronics for the sudden decline.
"For all businesses, you need to have a couple of percent of growth to maintain your costs," said Prof. David Vang, a retail expert at the University of St. Thomas. "If your sales stay flat, you're losing money – you're losing ground."