Shoppers looking for year-end gifts may not find what they want to buy at Best Buy.
The electronics retailer issued a weak sales forecast for the quarter as it braces for a hit from likely product shortages during the key holiday shopping season. It sees sales falling as much as 2% or rising 1% at best. At issue: iPhones and new gaming consoles. They’re key for Best Buy because they sell in large numbers and lure customers who often snap up other items as well.
But those products consume semiconductors, and a global chip shortage has dented availability of some popular products like Sony’s and Microsoft’s consoles. And analysts warn supply of Apple’s iPhones could also take a hit.
Investors punished Best Buy, sending its shares down more than 16% in early trading Tuesday.