Best-Buy: Good sign for Consumer electronics
BBY reported earnings this morning that are slightly ahead of expectations, also updated guidance for FY2005 which seems in-line to slightly positive. "Month-to-date revenue is on track with our expectations," stated Darren Jackson, executive vice president and CFO. Seeing strength in "digital televisions, MP3 players, digital cameras, notebooks and appliances, among other areas."
Maybe we won't have to worry about consumers' willingness to spend on discretionary items after all. But I am still concerned about slower than expected price declines on digital TVs and how that might affect demand for semis that go into those TVs. Seems like BBY and other retailers are lowering prices at a tepid pace which is leading to slower than expected unit pickup. But we still have 15 days to go until the end of the year, anything could happen.