Electronics Hurt Revenues at Best Buy and 3 Big Retailers

Although analysts surveyed by Thomson Reuters gave a 0.1 percent gain estimate, comparable sales, or sales at stores, websites and call centers in operation for at least 14 months, fell 1.2 percent in the five weeks ending Dec. 31. The results include a 0.4 percent drop in the U.S. and a 4.3 percent decline worldwide. Total sales were flat at $8.4 billion.

Best Buy (NYSE:BBY) refused to share its original sales forecast for the month. The retailer’s traffic pattern resembled that of many other companies that reported a hiatus between Black Friday, the day after Thanksgiving, and the week before Christmas. Best Buy’s traffic numbers repeatedly came out on top during Black Friday.

The poor showing of its electronics category during the holiday season has also put the company under sector pressure. On Thursday, Costco Wholesale Corp. (NASDAQ:COST) announced a double-digits drop in its television sales and Target Corp. (NYSE:TGT) pointed the finger in part at lower demand for electronics to explain discouraging December sales. Last week, Sears Holdings Corp. (NASDAQ:SHLD) stated that lower electronics sales played a role in declines at both its namesake chain and Kmart.

Here’s how these stocks are reacting to the news:

Best Buy Co. Inc. (NYSE:BBY): BBY shares recently traded at $24.49, up $1.05, or 4.48%. They have traded in a 52-week range of $21.79 to $36.13. Volume today was 5,624,251 shares versus a 3-month average volume of 6,485,650 shares. The company’s trailing P/E is 8.45, while trailing earnings are $2.90 per share.

Costco Wholesale Corporation (NASDAQ:COST): COST shares recently traded at $81.87, down $1.39, or 1.67%. They have traded in a 52-week range of $69.54 to $88.68. Volume today was 1,877,539 shares versus a 3-month average volume of 2,424,010 shares. The company’s trailing P/E is 24.65, while trailing earnings are $3.32 per share.

Target Corp. (NYSE:TGT): TGT shares recently traded at $49.00, up $0.49, or 1.01%. They have traded in a 52-week range of $45.28 to $56.44. Volume today was 7,633,814 shares versus a 3-month average volume of 6,149,080 shares. The company’s trailing P/E is 11.40, while trailing earnings are $4.30 per share.

Sears Holdings Corporation (NASDAQ:SHLD): SHLD shares recently traded at $29.18, down $0.94, or 3.12%. They have traded in a 52-week range of $28.89 to $94.79. Volume today was 1,156,111 shares versus a 3-month average volume of 1,111,020 shares. The company’s trailing earnings are $-3.38 per share.