Consumer electronics retailer Best Buy has said it will earn less than expected, as demand is falling. Best Buy blamed the financial crisis and other macro- economic factors for deteriorating sales.

Sales in October declined by 7.6%, after they had already contracted by 1.3% in September. The current fiscal quarter has seen sales fall by 4%. Due to declining consumer spending, Best Buy expects sales might decline anywhere between 5% to 15% in the remaining four months of it's fiscal year, which ends February 2009.

Earnings will also be hit be the stronger US Dollar, as foreign stores will contribute less due to the exchange rates. Annual revenue is projected to be $45.5 billion at most, 1% less than previous year. The worst case scenario sees the retailer reporting an annual revenue of $43.7 billion dollars, a decline of 8%. As a result of the current problems, Best Buy has said it will end the third quarter with inventory levels higher than anticapted.

"Since mid-September, rapid, seismic changes in consumer behavior have created the most difficult climate we've ever seen. Best Buy simply can't adjust fast enough to maintain our earnings momentum for this year," declared Best Buy CEO Brad Anderson. "We're beginning to adjust our cost structure to restore earnings momentum and still gain market share," added Anderson. X