Consumer electronics chains slump

The bad news from the sector's No. 1 brand came two days after its top rival filed for bankruptcy protection, citing eroding vendor confidence, decreased liquidity and the global economic crisis.

The virtual back-to-back days of bad news sent shares down across the sector as investors worried that the sales woes would spread.

"The macro environment remains extremely difficult to navigate due to continued pressures on consumer spending trends," RBC Capital Markets analyst Scot Ciccarelli told investors in a research note.

Best Buy said it now expects earnings per share between $2.30 and $2.90 for the fiscal year ending in February, down from a prior estimate of $3.25 to $3.40 per share. Meanwhile, it expects revenue between $43.7 billion and $45.4 billion, as well as at least a 1 percent decline in same-store sales as shoppers scale back on spending because of a tight credit market. Same-store sales, an important indicator in judging retail stores, are sales from stores that have been open at least one year.

The news sent Best Buy shares down $1.91, or 8 percent, to close at $21.97 Wednesday.

Meanwhile, RadioShack Corp. shares fell 55 cents, or 5.3 percent, to $9.79, while hhgregg Inc. fell 33 cents, or 6.6 percent, to $4.69.

Shares of Conns Inc. fell $1.15, or 12 percent, to close at $8.32.