NEW YORK, USA — ELECTRONICS retailer Best Buy said yesterday that its third-quarter net income fell 29 per cent as it cut prices in popular categories such as tablets and TVs to drive sales and traffic during the busy holiday season.

Its adjusted earnings missed analysts’ expectations, and its shares tumbled almost nine per cent in premarket trading.

Best Buy Co is facing tough competition from discounters and online retailers. The largest US specialty electronics retailer said it increased mark downs in categories such as mobile computing — which includes tablet computers — TVs and movies to drive traffic and sales, hurting its gross profit. It also spent more on advertising.

“We took actions to provide value to customers and drive our business in this competitive consumer environment,” said CEO Brian Dunn.

Net income for the three months ended November 26 fell to US$154 million ($13.2 billion) or 42 cents per share. That compares with US$217 million, or 54 cents per share, last year.

Excluding one-time items, its adjusted earnings totaled 47 cents per share. Analysts expected 52 cents per share, according to FactSet.

The Minneapolis company said revenue rose two per cent to US$12.1 billion from US$11.9 billion a year ago. Analysts expected US$12.13 billion.

Revenue in US stores open at least one year rose one per cent, boosted by a 20 per cent increase in online revenue.

Strong sellers during the quarter included mobile computing, appliances, e-readers, mobile phones and movies. Digital imaging and gaming were weaker.

Best Buy reaffirmed its full-year guidance of adjusted net income of US$3.35 to US$3.65 per share. Analysts expect US$3.44 per share.

It expects revenue of US$51 billion to US$52.5 billion. Analysts expect US$51.83 billion.

Shares fell US$2.50, or 8.9 per cent, to US$25.57 in premarket trading.