Best Buy's bad holiday

Best Buy (NYSE:BBY) had a bad holiday, reporting lower than expected sales in advance of its quarterly earnings report.

Comparable store sales fell 1.4 percent during the holiday season and total revenue declined 0.8% percent to $10.1 billion. It also lowered sales guidance for the fourth quarter.

Fingers are being pointed at weak mobile phone sales, but wearables, home theater and appliances were reportedly strong.

"There was not a newness factor in the iPhone," Best Buy CEO Hubert Joly said on a conference call. "The iPhone 6s was merely an incremental change from the iPhone 6."

Online sales were also strong, climbing 12.6 percent during the two-month holiday period compared to the same period last year.

Free shipping hit Best Buy hard as the chain offered the service on all orders, removing the minimum purchase price requirement, reported the Minneapolis Star Tribune.

Last year, Best Buy reported a sales increase at U.S. stores of 2.6 percent.

For more:
-See this Star Tribune story
-See this Best Buy financial release

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