Best Buy Co. Inc. offered voluntary severance packages to virtually all its 4,000 corporate employees Tuesday as the nation's largest consumer electronics chain announced its third-quarter profit skidded 77 percent.
The results -- which beat Wall Street's lowered expectations -- came in what the company called the "most challenging consumer environment" in its history, an environment so rough Best Buy hasn't been able to take full advantage of its largest rival's bankruptcy.
"We believe that the environment for consumer spending is likely to get worse before it gets better," said Chief Executive Brad Anderson. "In fact, we can foresee a period in which consumers may significantly shift their spending behaviors, which could have a dramatic impact on retailing."
Data released by MasterCard SpendingPulse said total consumer electronic spending declined approximately 25 percent last month. And, as wary shoppers tamped down discretionary spending, retailers boosted discounts to keep merchandise moving, often at the expense of profits.
From Yahoo! Finance: Xilinx cuts fiscal 3Q sales estimateProgramable chip maker Xilinx Inc. lowered its fiscal third-quarter guidance Tuesday, saying sales in December have been weaker than anticipated.
Xilinx said it expects sales to decline between 6 percent and 10 percent from second-quarter levels. The company previously predicted a range between 2 percent growth and a 2 percent decline in sales.
Xilinx reported fiscal second-quarter revenue of $483.5 million, suggesting the company expects revenue of $435.2 million to $454.5 million for the period ending in December, compared with $474.8 million in the same period a year ago. Wall Street analysts surveyed by Thomson Reuters were anticipating revenue of $458.5 million, on average.
From Yahoo! Finance: Adobe 4Q profit grows, revenue essentially flat
The company also reaffirmed the first-quarter outlook it gave on Dec. 3, and shares jumped more than 9 percent in after-hours trading.
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