The electronics retailer reported a return to profit in the third quarter and beat Wall Street expectations but investors focused on the holiday outlook.
Best Buy chief financial officer Sharon McCollam, said the retailer faces "an increasingly promotional environment" and "we are committed to being competitive on price."
"If our competition is in fact more promotional in the fourth quarter, we will be too and that will have a negative impact on our gross margin," McCollam said in a statement.
Best Buy reported net income of $54 million, or 16 cents per share, in the third quarter. That compares with a with a loss of $10 million, or 3 cents per share,in the third quarter of last year.
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The struggling retailer beat Wall Street estimates of 11 cents a share, according to Thomson Reuters
Revenue was nearly flat at $9.36 billion.
Best Buy has been cutting costs and revamping stores to offset tough competition from discounters and online retailers. Under CEO Hubert Joly, the company has instituted a price-matching policy, opened more dedicated areas for manufacturers such as Apple and Samsung and invested more to train employees.
Contributing: Associated Press
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