(By Salman - iStockAnalyst Writer)Best Buy Co. (NYSE: BBY), the largest electronics retailer, on Friday narrowed its fiscal 2009 adjusted earnings forecast and said that its December same stores fell as consumers continued to cut back on spending in holiday season.

The Richfield, Minnesota based company said it now expects to earn between $2.50 and $2.70 a share, on an adjusted basis, for its fiscal year ending in February. Earlier, it estimated earnings in a range of $2.30 to $2.90 a share. The company also said that it will take an approximately $60 million fourth-quarter charge related to some employee buyouts.

Best Buy said the updated forecast reflects a likely 2% to 3% fall in same-store sales and excludes an $111 million third-quarter investment impairment charge, expenses related to the buyouts and other restructuring charges.

Analysts on average are currently looking for net income of $2.61 a share, excluding charges.

Additionally, the company reported its same-store sales dropped 6.5% in December. However, revenue climbed 4% to $7.5 billion for fiscal month ended Jan. 3. Though domestic unit registered strong same-store sales in flat-panel TVs, notebook computers and cell phones and accessories, the overall consumer electronics segment posted a decline of 8.7% in same store sales.

Meanwhile, bankrupt rival Circuit City Stores Inc. suggested that it is negotiating with “two highly motivated and interested parties” that could either buy the company or provide additional financing to sustain operations. However, the company refused to divulge further details.

In November, the company was forced to file for Chapter 11 bankruptcy protection in November due to deepening recession, weakening consumer spending and increased pressure from vendors.

The company said in a statement "While the company is optimistic that a transaction can be successfully finalized, no assurance can be given that this will occur."

Shares of Best Buy Inc. slipped $1.53 or 5.16% to $28.12.

Disclosure: Author does not own any of the stocks discussed here.