It's a retailers' arms race for consumers' holiday dollars -- and Best Buy warned Tuesday that promotional discounts this season could hurt profitability.
As stores race this year to kick off Black Friday sales earlier and earlier, Best Buy plans to fight for its share of customers. For consumers, that means more bang for the buck. But for the beleaguered electronics retailer, it means narrower profit margins.
On Tuesday, the Richfield, Minn.-based company beat Wall Street expectations when it reported a profit during its most recent quarter. Net income rose to $54 million, compared with a loss of $10 million during the same period last year.
Still, investors were more focused on comments by Best Buy chief financial officer Sharon McCollam in the company's earnings statement.
"We know that we will be facing an increasingly promotional environment," McCollam said. "As such, we want to give you color on our response to this competitive situation and our perspective on how these pressures could financially impact the fourth quarter."