Black Friday: Sales Positive, But Profits Likely Absent
Retailers in the U.S. may have seen a Black Friday in which both sales and foot traffic increased over the year before. But did they make more profit? It appears not, especially not in the electronics sector.
Several major CE retailers, including Best Buy, RadioShack, hhgregg and Conn's, saw their stock drop Monday morning and remain relatively low throughout the rest of the day. (Circuit City, which is in bankruptcy, had its stock de-listed last month)
According to the Associated Press, the stocks moved downward after multiple reports from analysts that deep discounts on Black Friday items would likely cut into profits. Black Friday got its name from the tradition of retailers moving "into the black" for the year.