Best Buy forecasts tough holiday season

Nov. 19 (UPI) -- Best Buy sales were close to flat as the electronics retailer nears the holiday season. Profits rose for the third quarter, but shares dropped more than 7 percent in anticipation of a weak fourth quarter.

Third quarter profits rose to $54 million, or 16 cents per share, compared to a loss of $10 million, or 3 cents per share in the year-ago period. The company anticipates that competitor prices will be lower, and therefore Best Buy prices must also be driven down, impacting gross margins.

Walmart is among the stores with prices dropping lower to attract more consumers. And Amazon, which also competes with Best Buy, has recently announced seven-day shipping in major cities along with competitive sales.

While Best Buy same store sales have risen in America, they've dipped overseas. Best Buy will open at 6 p.m. Thanksgiving day.

[Wall Street Journal] [USA Today]