Best Buy Co's quarterly profit fell as bigger discounts during the holiday season squeezed margins at the world's largest electronics chain, and its shares fell.

Net earnings fell to $154 million, or 42 cents a share, in its third quarter ended November 26, from $217 million, or 54 cents a share, a year earlier.

Excluding items, it earned 47 cents a share.

Shares were down 8 percent at $25.45 in heavy premarket trading.

(Reporting by Dhanya Skariachan; Editing by Derek Caney)