Best Buy Is Crashing

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Shares of Best Buy are down by more than 9% in pre-market trading.

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In the electronics retailers' new holiday sales report, CEO Hubert Joly outlined a number of challenges the electronics retailer might face in 2015, including deflationary pricing and weak demand for consumer electronics.

Here's the key paragraph: (emphasis ours):

"As we look forward to FY16, as we shared with you last quarter, we will continue to pursue a strategy that is focused on delivering Advice, Service and Convenience, at competitive prices. Within this strategy, we are focused on driving a number of profitable growth initiatives around key product categories, life events and services and on continuing to transform our key functions to support these initiatives. This strategy will be the foundation of our FY16 operating plan, and we are confident in our ability to execute against it as we have demonstrated this past year. But there are also external pressures that we discussed last quarter that are driving structural industry changes, including (1) deflationary pricing; (2) weak industry demand in NPD-reported Consumer Electronics categories; (3) declining demand for extended warranties; as well as (4) exchange rate volatility in our International businesses. And to win against this backdrop, we have to lead - which requires investing now. Therefore, we are already beginning to make the incremental investments in the growth initiatives that we just discussed which will put year-over-year pressure on our non-GAAP operating income rate beginning as early as Q1 FY16."

In the release, management said same-store sales climbed by 2.6% during the holiday season.

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Here's a chart of how the stock's traded in the last year:

best buy

Yahoo! Finance