The shares of Best Buy Co. Inc. have been feeling the pinch from the holiday sales of Target Corp.’s announcement which have included the soft sales in the category of consumer electronics.
Target has said that their comparable sales for the electronics had been down by over 6% in the month of November as well as December. Home category had also seen a lowering of close to 1% and turned out to be one more area which was weak.
The category of toys turned out to be flat this season however the chief executive of Target, Brian Cornell had laid emphasis that even with the flat outcome the data of the NPD Group has shown that the retailer was able to gain its shares in the category of toys.
The three categories were key for the season and are having a major impact on the growth of sales as per Target.
Cornell said that while they knew that this particular season was going to be a big challenge, it turned out to be a lot more challenging than the expectations were.
The overall sales growth comparable had been 1.4% and it is expected by Target that the fourth quarter is going to be linear with that of the results of November and December. The comparable sales for this year have been expected to grow over 3%. The consensus is for the comparable sales growth of 3.3% for this quarter or growth sales comparable of 4% for this year.
The stocks of Target had sunk by 6% in the trading on Wednesday after there was news of the result. There was a rally by 72.6% in the last year.