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baw
Nov 5, 2008
RESIDENT: LAISSEZ FAIR-SNEZHNEVSKY INSTITUTE FOR FORENSIC PSYCHIATRY

completely

quote:

Time to say bye-bye to Best Buy stock.

Actually, we have been saying that for a long time and remain skeptical even after Thursday's bloodletting.

Many thought the troubled electronics big-box retailer was on the road to a successful reboot, helped by the restructuring plan launched in late 2012. Those hopes got squashed early Thursday when Best Buy (ticker: BBY) reported an unexpected drop in U.S. holiday sales as its attempt to fight a savage price war failed.

Sales at U.S. stores open for at least 12 months fell 0.9% during the nine-week period that ended Jan. 4, compared to the 2% gain expected by analysts. Best Buy now expects to report a decline in operating profit when it unveils fiscal fourth-quarter financial results on Feb. 27.

Wall Street was stunned. Best Buy plunged 28.5% to $26.88 in afternoon trading with nearly 74 million shares changing hands. The stock is now down 40% from its 52-week high of $44.66.

"When you see a stock down 30% in a single say you don't necessarily rush to buy it," warns Brian Sozzi, CEO and chief equities strategist at Belus Capital Advisors. "The market is trying to tell you something and you should listen."

Investors who believed that Best Buy CEO Hubert Joly could turn around the company, amid worries that its stores had become little more than showrooms for online shoppers, have learned it's going to be a very bumpy ride regardless of the final outcome.

Best Buy boosted its promotions to compete with other retailers, particularly Wal-Mart (WMT) and online behemoth Amazon.com (AMZN) during the holiday season and warned in November that its fiscal fourth-quarter margins could take a hit. To lure customers, the company opened most of its stores on Thanksgiving Day and extended store hours in the days leading up to Christmas.

The company says it won market share, but that didn't help sales. Also, the added store hours increased costs, which hurt margins.

And now, the Street is left with little visibility regarding how much Best Buy might actually earn in the new fiscal year, which starts next month.

As of Wednesday, consensus estimates among analysts surveyed by Thomson Reuters forecasted a 16% gain in fiscal 2015 earnings to $2.83 a share on revenue of $43.3 billion.

For now, Best Buy plans to continue its promotions. Joy, however, concedes that the company needs to get leaner. A top priority is to improve online sales and deepen its existing cost-cutting program.

Best Buy is $550 million into the $750 million restructuring plan it unveiled in November 2012. Belus' Sozzi sees Best Buy raising that target as high as $1 billion and closing as many as 100 stores.

"There was nothing on the conference call [between management and analysts] to hang our hat on," says Sozzi, who plans to publish a note Friday downgrading Best Buy, which had been among his 2013 top picks. "Over the next few days you will see earnings estimates come down drastically and more negative notes that put more pressure on the stock."

Sozzi sees the stock falling another 10% by the time Best Buy releases fourth-quarter earnings next month.

In August, Barrons.com was cautious about Best Buy's turnaround attempt.

Five months earlier, Barron's magazine complained that Best Buy's stock-price performance was helped by sentiment, not fundamentals.

Granted, Best Buy's management remains confident about its strategy, as do a number of analysts. But until Best Buy can prove it is on the right track, investors should steer clear.

i feel bad for the people who are stuck working there, and i've never really had a bad experience with them (i havent been into a best buy for like 4 years) but i've heard a lot of horror stories both from customers and from employees.

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The Taint Reaper
Sep 4, 2012



QUICKLY BUY UP THE REMAINING ANIME THEY'RE SELLING! THE END IS NIGH!

Miyamotos RGB NES
Dec 31, 2000



can i interest in you an extended warranty on direcTV?

roboshit
Apr 4, 2009



too bad we cant say goodbye to your posting also

zenintrude
Apr 7, 2008


Weird that it's just now dawning on investors that it's an Amazon showroom, complete with conveniently placed Amazon gift cards.

Can GameStop please be next? Thanks.

Fallom
Sep 6, 2008




Wall Street is shocked, stunned, absolutely incredulous that Best Buy maybe isn't worth much anymore

Investors are loving stupid.

Chum Scandal
Oct 30, 2003



where am i going to get $50 monster cables now

exquisite tea
Apr 21, 2007

and she told me, "Listen honey. There's hundreds of strong men out there. I like men who are kind, who are honest, men who can be open with me."

baw wit da baw The Taint Reaper Miyamoto's RGB robo poo poo up drop the Fallom

CAPTAIN CAPSLOCK
Sep 11, 2001



Fallom posted:

Investors are loving stupid.

c0ldfuse
Jun 18, 2004

The pursuit of excellence.


I actually used Best Buy several times over Christmas for the first time in years because Amazon wouldnt ship my stuff with their backlog for over a week. You need to buy online though, Bestbuy.com had my $300 worth of stuff for only another $10 (plus sales tax which I don't count) I picked up in store within an hour.

Irish Joe
Jul 23, 2007

Come on Abed, let's spoon in the Gluon Chamber.

BB's mistake was not switching to a leaner model much sooner. They have all these gigantic loving stores displaying poo poo anyone can buy cheaper and with less hassle online (DVDs, CDs). What they should have been doing was buying smaller spaces and focusing on high-end equipment, installation and maintenance, especially after Circuit City went under and left a giant hole in the market. Kids don't need to go into Best Buy to buy the new 50 Cent LP, but grandpa does need some 20 year-old twink to install his stereo system and show him how to work the remote.

Fallom
Sep 6, 2008




Investors considered Best Buy's innovative "impulse buy gauntlet" a promising gambit that would likely pay big dividends, but were dismayed to find out that making their shelves of candy bars, cheap headphones and magazines stretch across half the store didn't reinvigorate the technologist consumer's spending spirit.

Anccar
Jan 16, 2014

by Pipski


Buy farmland.

lesbian baphomet
Nov 30, 2011



do they still sell 99 cent lengths of cable for upwards of $20 or whatever? i haven't been inside a best buy in a long time.

Retail Slave
Nov 25, 2011

You are the only Packers poster who deserves the ignominy of an A.J. Hawk avatar. Enjoy.


I had a 2-year warranty plan on my kindle fire that I had to use a few weeks ago. Everything went smoothly. The Best Buy nearest to me has always been good, but that's the only one I've ever been to.

roboshit
Apr 4, 2009



last time i was in a best buy i was just shopping for halo 3 or whatever the coolest new videogame was at the time and this fat guy tried to stop me and harass me about directTV

Chum Scandal
Oct 30, 2003



roboshit posted:

last time i was in a best buy i was just shopping for halo 3 or whatever the coolest new videogame was at the time and this fat guy tried to stop me and harass me about directTV

was it brian urlacher

exquisite tea
Apr 21, 2007

and she told me, "Listen honey. There's hundreds of strong men out there. I like men who are kind, who are honest, men who can be open with me."

roboshit posted:

last time i was in a best buy i was just shopping for halo 3 or whatever the coolest new videogame was at the time and this fat guy tried to stop me and harass me about directTV

Tremble before me, for I am XBone become flesh.

mind the walrus
Sep 22, 2006

I'm a real asshole about the stupidest shit

Best Buy deserves to go under. It's a terrible store and I've had nothing but unpleasant experiences with them.

roboshit
Apr 4, 2009



roboshit posted:

last time i was in a best buy i was just shopping for halo 3 or whatever the coolest new videogame was at the time and this fat guy tried to stop me and harass me about directTV

and then i pulled my katana (all 23 inches of hanzo steel) and sliced his carotid then i slashed his body into pieces and drank his blood spurting out of his arteries lol

Nathilus
Apr 4, 2002

I alone can see through the media bias.

I'm also stupid on a scale that can only be measured in Reddits.

I went into Best Buy shortly after the holidays to pick up an HDMI cable for my mom, while I was in town. I just needed something between 10 and 20 feet. There was nothing in that size range for under 50 dollars. One thirty-footer was over a hundred, loooool. I wept and screamed for a little bit before loving off home to order that poo poo off of newegg for 7 dollars.

The time before that was like a year ago, when they just so happened to have a reasonably priced Thing I needed for my computer right the gently caress then. I paid 20-30 more bucks on a couple hundred dollar doodad because I wanted it right then and not in 2-3 business days.

I feel kind of bad for them. They've had stuff I need at decent prices for a long time, and I never had an issue with their service or the way they do business. It's just their entire paradigm is becoming obsolete. You can't hope to compete with brick and mortar megastores like walmart AND digital giants like amazon. No fuckin' way. On the other side of the field, they're also being pressed with regional specialty electronics stores. A lot of the business customers that aren't under massive service contracts choose these places when they need their business machines handled NOW. These places can't compete on a retail level, but they often have large retail sections just to drum up business.

Hemmed in on three fronts. Best Buy is hosed.

Jett
Oct 17, 2005

byob.user.js


roboshit posted:

last time i was in a best buy i was just shopping for halo 3 or whatever the coolest new videogame was at the time and this fat guy tried to stop me and harass me about directTV

hmmm i thought they weren't paid commission

NurhacisUrn
Jul 18, 2013

All I can think about is your wife and a horse.
We are working on some SERIOUS SHIT in here.

exquisite tea posted:

baw wit da baw The Taint Reaper Miyamoto's RGB robo poo poo up drop the Fallom

GODSPEED JOHN GLENN
Apr 27, 2010

I put up my thumb... and it blotted out the planet Earth.



My brother was an executive for Blockbuster, and when that shut down he moved over to Best Buy.

Parallax Scroll
Nov 13, 2009

spiderman

More like best sell

Irish Joe
Jul 23, 2007

Come on Abed, let's spoon in the Gluon Chamber.

Jett posted:

hmmm i thought they weren't paid commission

commission =/= quotas

The Bible
May 8, 2010



Jett posted:

hmmm i thought they weren't paid commission

Their managers are.

zenintrude
Apr 7, 2008


Parallax Scroll posted:

More like best sell



close thread, it's done

Iron Crowned
May 6, 2003

Stained sweatpants. Bad facial hair. Shrill voice. Spergin rules knowledge. Casino dice. CHECK. Games Day, here I come!


Best Buy should adopt the Ikea model, force you to walk through the whole thing before you can buy your poo poo in the back.

there are secret warp zones in Ikea

Retail Slave
Nov 25, 2011

You are the only Packers poster who deserves the ignominy of an A.J. Hawk avatar. Enjoy.


Best Buy may blow, but at least it's not Radio Shack.

Jett
Oct 17, 2005

byob.user.js


Iron Crowned posted:

there are secret warp zones in Ikea

yeah but i always crash my hoverbike into a black faux-leather futon or a demo of a fully functional 100-square-foot apartment before i can reach one of them

cname
Jan 24, 2013


What? How? How is this? What and why?! WHY?! Why does this have to be America?!

The fuckin article posted:

Investors who believed that Best Buy CEO Hubert Joly could turn around the company, amid worries that its stores had become little more than showrooms for online shoppers, have learned it's going to be a very bumpy ride regardless of the final outcome.

Best Buy boosted its promotions to compete with other retailers, particularly Wal-Mart (WMT) and online behemoth Amazon.com (AMZN) during the holiday season and warned in November that its fiscal fourth-quarter margins could take a hit. To lure customers, the company opened most of its stores on Thanksgiving Day and extended store hours in the days leading up to Christmas.

The answer is right here! Do not this! HERE! NO! NO MORE! STOP IT!

How and why is there a direct coloration between a CEO's stupidity and success as a large business? America, that's why!

Remember when Best Buy was successful? Remember when you'd go in, stroll over to the computer section and consult with a semi-knowledgeable, late highschool/early college aged semi-nerd? I mean, they weren't experts or anything, but they knew what RAM was and could tell you why one computer was more expensive than the other. If they didn't know, they'd find out.

Now a days you go in, get greeted by the fatshit, mustard tiger LP slob at the front door, head to the computer department and wait for some middle-aged dickstain to read the tag and shrug when you ask a question. Then have the audacity to upsell you on a bunch of trash you could find in your cord drawer, at home.

Don't mention the words "power supply" or you might give one of them a heart attack.

It's as though they've decided to slash payroll (and their profit margin as a direct result) to bring you the worst possible customer service, on the face of the earth. UGH!

People don't shop at Best Buy to save money! They do it because they aren't exactly sure what they want and they would rather see products in person so they don't have to gamble by buying online. They have every opportunity to sell like crazy, but their employees are thumb up the rear end losers who couldn't sell oxygen to a scuba diver with a cracked tank!

I'm the most gullible consumer. I have no sales experience or sense of "should I really but this?" I have not once been sold anything at Best Buy and I browse fairly often on my lunch break. When I do ask for assistance, the employee's entire sales strategy is to stand there and pray to god I buy it.

Burn! Burn you piece of poo poo! Hopefully Comp USA or Microcenter will rise from the ashes.

cname fucked around with this message at Jan 17, 2014 around 14:47

rcman50166
Mar 23, 2010



I just bought a camera charger from best buy. I found a cheaper price online and they price matched no questions asked. The new best buy seems to be much better. I hope they can tough it out. At least long enough for them to honor the warranty on the loving dishwasher I also just bought.

zenintrude
Apr 7, 2008


cname posted:

Remember when Best Buy was successful? Remember when you'd go in, stroll over to the computer section and consult with a semi-knowledgeable, late highschool/early college aged semi-nerd? I mean, they weren't experts or anything, but they knew what RAM was and could tell you why one computer was more expensive than the other. If they didn't know, they'd find out.

They're all LP superstars now

baw
Nov 5, 2008
RESIDENT: LAISSEZ FAIR-SNEZHNEVSKY INSTITUTE FOR FORENSIC PSYCHIATRY

GODSPEED JOHN GLENN posted:

My brother was an executive for Blockbuster, and when that shut down he moved over to Best Buy.


it's ok he can go work for jc penney next

Iron Crowned
May 6, 2003

Stained sweatpants. Bad facial hair. Shrill voice. Spergin rules knowledge. Casino dice. CHECK. Games Day, here I come!


rcman50166 posted:

I just bought a camera charger from best buy. I found a cheaper price online and they price matched no questions asked. The new best buy seems to be much better. I hope they can tough it out. At least long enough for them to honor the warranty on the loving dishwasher I also just bought.

I hope they last long enough that my brother finds a new job so he doesn't have to live with me.

Slipknot Hoagie
Jan 5, 2004



hopefully i can get a cheap tv or something when they go bankrupt

Zyklon B Zombie
Feb 13, 2005

Circling Overland

I wonder how long it will be before every single retail space is either a Wal*Mart style super center grocery store or a restaurant. Looking at google maps, the couple of miles of retail space by my apartment has:

Steak 'n Shake
Bob Evans
Perkins
Wendy's
McDonald's
Applebees
Ihop
Paneras
Hot Head Burritos
Firehouse Subs
Outback Steakhouse
Frisch's Big Boy
KFC
Tim Hortons
Chipotle
Red Robin
Chick-fil-A
Skyline Chili
El Vaquero Mexican
Texas Roadhouse
Taco Bell
Panda Express
White Castle
Arby's
Fazolis
Burger King
Culvers
Cracker Barrel
Supreme Chinese Buffet
Cicis
Subway
Piada
Smoothie King
Dontatos Pizza
BW3
Olive Garden
Another Wendy's
Raising Cane's
Flyer's Pizza and Subs
Little Caesars

Every single small store that closes ends up turning into some sort of food shop.

zenintrude
Apr 7, 2008


I love liquidation sales, so bring it on... have gotten lots of nice things for great prices when CompUSA, Circuit City, Borders, and Kmart have folded these past few years. At this point it feels like an annual occurrence, and a welcome one!

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baw
Nov 5, 2008
RESIDENT: LAISSEZ FAIR-SNEZHNEVSKY INSTITUTE FOR FORENSIC PSYCHIATRY

i hate box stores and franchises im so goddamn glad i moved out of the US

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