Nonprofit, independent journalism. Supported by readers.


Best Buy’s ‘Circuit City bump’ won’t offset recession

Best Buy on Tuesday will tell shareholders how it did during the first quarter of its fiscal year. Analysts predict the retailer’s “Circuit City bump” wasn’t enough to offset the recession’s negative impact on sales.

The bump Best Buy got from Circuit City’s liquidation was short-lived and not enough to offset the negative impact of the recession.

That’s the prediction from analysts in advance of Best Buy’s first-quarter earnings report, set to be released Tuesday.

Scott Tilghman of Hudson Square Research tells MarketWatch that store traffic was up in March but the trend wasn’t sustained throughout the quarter. He predicts Best Buy will report a 5.5 percent sales decline at U.S. stores that have been open more than a year.

A Thompson Reuters poll, reported by the Associated Press, predicts Best Buy brought in 34 cents per share during the first three months of its fiscal year. That would be down from 43 cents per share for last year.