Best Buy Earnings Drop 91%, Suspends Guidance
Excluding certain items, profit was 20 cents a share. Wall Street expected 31 cents
By: Maureen O'Gara
Aug. 22, 2012 09:30 AM
Best Buy, the flailing consumer electronics retailer that's ignoring a $9 billion takeover attempt by its founder, reported its latest quarter Tuesday morning and turned in profits 91% below last year on revenues off 3.2%.
The company has suspended profit forecasts for its second half and halted share buy-backs.
Income amounted to $12 million, or four cents a share, including a $91 million restructuring charge mostly from store closures.
Excluding certain items, profit was 20 cents a share. Wall Street expected 31 cents.
Sales, which are supposed to be going to cheaper Internet rivals like Amazon, dropped 1.6% in the US and 8.2% internationally. Best Buy's sales have declined eight of the last nine quarters.
The company hired Hubert Joly, a Frenchman with no retail experience and dubious turnaround credentials, as CEO over the weekend.
Shares dropped another 10+% pre-market.
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