Photograph by Kamil Krzaczynski/Getty Images
Amid the robust holiday spending season for retailers, evidence is mounting that consumer technology sales are a big weak area.
The analyst estimated that televisions accounted for about 25% of the retailer sales, and Apple products represented about 10% of revenue. Nagle said both product categories will likely detract from Best Buy's results.
This week, Mastercard SpendingPulse reported that U.S. retail sales surged this holiday season (Nov. 1 through Dec. 24), rising 5.1% from last year's level-the strongest growth rate in six years. But electronics and appliances sales underperformed, declining 0.7% year-over-year. Mastercard's data is based on analysis of total sales activity in the firm's payments network, along with survey-based estimates for other forms of payment.
In similar fashion, KeyBanc Capital Markets on Thursday said its internal retail credit and debit card trends data showed spending at Best Buy dropped more than 12% year-over-year for the month of December through the 23rd. The KeyBanc data is based on 1.8 million accounts that have an average spend of $900 per month.
Best Buy did not immediately respond to a request for comment on the credit card spending tracking data.
If the tracking data is correct, the consumer electronics retailer will have a difficult time meeting its outlook. On Nov. 20, Best Buy gave a U.S. comparable sale growth guidance range of 0% to 3% for its fiscal fourth-quarter ending in January.
Best Buy stock was down slightly on Friday to $51.87. The stock has declined nearly 20% so far this month as investors grow concerned about weak technology spending.
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