Circuit City had to declare bankruptcy before the holiday shopping season. Those shopping for gift cards will probably be looking to other stores. These days, everyone seems to be favoring WallMart over stores like Best Buy. This hasn’t escaped Best Buy, who just slashed forecasts today. Bloomberg has the story Best Buy Cuts Annual Profit, Sales Forecasts on Slump:

Best Buy Co., the largest U.S. electronics retailer, said full-year profit will be lower than it expected because of the recent turmoil in the financial markets and the U.S. economic slump

The shares dropped as much as 17 percent in early New York trading after the chain said profit for the year through February 2009 will be $2.30 to $2.90 a share. Revenue may range from $43.7 billion to $45.5 billion, Best Buy said today in a statement.

Sales at stores open at least 14 months may decline as much as 15 percent in the four months through February as consumers grappling with the worst financial crisis since the Great Depression cut back on spending.

This seems to be the indicative of the sentiment across the board today. The fact that we are still being surprised to the downside is not a good thing. The talking heads on TV are discussing a bottom. It’s ridiculous to call a bottom if your expectations are consistently too high. Here’s a great idea for a scavenger hunt: Find an analyst who has been right about forecasts and is willing to call a bottom. I’ll wait here.