Electronics Retailers May Miss Profits on This Item During the Holidays

In the backdrop of falling global TV sales and gloomy loss forecasts by Sony (NYSE:SNE) and Panasonic (NYSE:PC) , retailers are gearing up for a bruising battle in the TV aisles this holiday season. That spells bad news for margins at Best Buy (NYSE:BBY), RadioShack (NYSE:RSH), hhgregg (NYSE:HGG), Target (NYSE:TGT), and Walmart (NYSE:WMT).

Japanese manufacturer Sony Corp recently warned investors that its TV division would likely notch up its eighth consecutive annual loss, while competitor Panasonic Corp forecast its biggest annual net loss in ten years.

Also, according to the latest DisplaySearch Quarterly Advanced Global TV Shipment and Forecast Report, global TV shipments were soft in Q1’11 as the worldwide TV supply chain had to cope with excess inventory, but growth was still up 1% Y/Y. In Q2’11, however, TV shipment growth turned negative, declining 1% Y/Y and falling more than 6% Y/Y in developed regions, which more than offset 3% growth in emerging markets.

Given this scenario, retailers (NYSEARCA:XRT) may have to offer up to 40 per cent price cuts on large-screen TVs and maybe free shipping and financing for longer periods. “As we look at the holiday season, we are going to play offense,” Hhgregg Inc Chief Executive Officer Dennis May told Reuters in an interview last week. “We are going to be very promotional. We are going to be aggressive.”

  • Sony Corporation (NYSE:SNE): The shares recently traded at $17.81, down $0.11, or 0.61%. Its market capitalization is $17.87 billion. They have traded in a 52-week range of $17.70 to $36.97. Volume today was 217,228 shares versus a 3-month average volume of 1,389,290 shares. The company’s trailing earnings are $-4.57 per share. About the company: SONY CORPORATION manufactures audio, home video game consoles, communications, key device and information technology products for the consumer and professional markets. The Company’s other businesses include music, pictures, computer entertainment, and online businesses. Get the most recent company news and stock data here >>
  • Panasonic Corporation (NYSE:PC): The shares recently traded at $9.24, down $0.08, or 0.86%. Its market capitalization is $21.37 billion. They have traded in a 52-week range of $9.07 to $14.95. Volume today was 104,030 shares versus a 3-month average volume of 309,398 shares. The company’s trailing earnings are $-0.80 per share. The company pays a dividend of $0.12 per share for a dividend yield of 1.30%. About the company: Panasonic Corporation manufactures electric and electronic products. The Company produces home appliances, audio & video, computer peripherals, telecommunications, industrial equipment, and electronic parts. Panasonic has associated companies around the world. Get the most recent company news and stock data here >>
  • Best Buy Co. Inc. (NYSE:BBY): The shares recently traded at $26.57, down $0.74, or 2.71%. Its market capitalization is $9.63 billion. They have traded in a 52-week range of $21.79 to $45.63. Volume today was 2,739,127 shares versus a 3-month average volume of 7,150,730 shares. The company’s trailing P/E is 8.89, while trailing earnings are $2.99 per share. The company pays a dividend of $0.64 per share for a dividend yield of 2.30%. About the company: Best Buy Co., Inc. retails consumer electronics, home office products, entertainment software, appliances and related services through its retail stores, as well as its web site. The Company also retails pre-recorded home entertainment products through retail stores. Get the most recent company news and stock data here >>
  • RadioShack Corp. (NYSE:RSH): The shares recently traded at $12.91, down $0.31, or 2.34%. Its market capitalization is $1.29 billion. They have traded in a 52-week range of $10.68 to $20.81. Volume today was 802,603 shares versus a 3-month average volume of 2,967,100 shares. The company’s trailing P/E is 11.68, while trailing earnings are $1.11 per share. The company pays a dividend of $2.00 per share for a dividend yield of 15.10%. About the company: RadioShack Corporation operates a chain of retail consumer electronics goods and services stores located throughout the United States and Mexico, along with wireless phone kiosks in the US, and dealer outlets worldwide. The Company offers consumers wireless phone and other electronic products and services from national brands and exclusive private brands and wireless carriers. Get the most recent company news and stock data here >>
  • hhgregg, Inc. (NYSE:HGG): The shares recently traded at $15.04, up $0.52, or 3.58%. Its market capitalization is $575.14 million. They have traded in a 52-week range of $8.88 to $25.95. Volume today was 312,538 shares versus a 3-month average volume of 487,018 shares. The company’s trailing P/E is 12.91, while trailing earnings are $1.17 per share. About the company: hhgregg, Inc. retails video products, brand name appliances, audio products and accessories. Get the most recent company news and stock data here >>
  • Target Corp. (NYSE:TGT): The shares recently traded at $52.24, up $0.07, or 0.13%. Its market capitalization is $35.28 billion. They have traded in a 52-week range of $45.28 to $60.97. Volume today was 974,274 shares versus a 3-month average volume of 7,729,420 shares. The company’s trailing P/E is 12.41, while trailing earnings are $4.21 per share. The company pays a dividend of $1.20 per share for a dividend yield of 2.30%. About the company: Target Corporation operates general merchandise discount stores in the United States. The Company’s merchandising operations include general merchandise and food discount stores and a fully integrated online business. Target also offers credit to qualified applicants through its branded proprietary credit cards. Get the most recent company news and stock data here >>
  • Wal-Mart Stores Inc. (NYSE:WMT): The shares recently traded at $57.18, down $0.32, or 0.56%. Its market capitalization is $197.08 billion. They have traded in a 52-week range of $48.31 to $57.96. Volume today was 2,780,892 shares versus a 3-month average volume of 14,562,400 shares. The company’s trailing P/E is 12.17, while trailing earnings are $4.70 per share. The company pays a dividend of $1.46 per share for a dividend yield of 2.60%. About the company: Wal-Mart Stores, Inc. operates discount stores, supercenters, and neighborhood markets. The Company’s discount stores and supercenters offer merchandise such as apparel, housewares, small appliances, electronics, and hardware. Walmart’s markets offer a full-line supermarket and a limited assortment of general merchandise. The Company operates nationally and internationally. Get the most recent company news and stock data here >>

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