The stock was last trading down $4.99–down 12.5%– at $34.92 per share.
Earlier in the trading session, the stock had fallen more than 16% to trade at $33.18.
In the electronics retailer's new holiday-sales report, CEO Hubert Joly outlined numerous challenges the company 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.