Friday, October 31st9.7°C
23888
23823

Best Buy, a good buy or a bad buy

Best Buy Co. reported another dismal quarter on Tuesday, recording a loss in the third quarter, hurt by a continued sales slump and charges related to restructuring.

Shares fell more than 6 per cent in premarket trading.

The electronics chain is struggling to reverse a year long decline in its business as competition from online stores and discounters increases, and consumers' tastes shift from more profitable items like TVs and desktop computers toward less profitable smartphones and tablets.

In addition, it's facing a growing number of consumers who are "showrooming," going to Best Buy stores to check out merchandise, but buying it elsewhere.

"In-line with trends experienced over the last three years, Best Buy's third quarter financial performance was clearly unsatisfactory," said CEO Hubert Joly, a turnaround expert tapped in August to help improve results.

Last week at an analyst meeting, Joly outlined a plan to improve results via beefing up customer service and revamping stores while at the same time cutting overhead and supply-chain costs.

"The results we are reporting today only strengthen our sense of urgency and purpose," Joly added.

Best Buy Co., based in Richfield, Minn., reported a loss of $10 million, or 3 cents per share, for the three months ended Nov. 3. That compares with net income of $156 million, or 42 cents per share in the prior year period.

Excluding one-time items, net income totalled 3 cents per share. Analysts expected net income of 13 cents per share.

Revenue fell 4 per cent to $10.75 billion from $11.15 billion but still matched analysts' expectations.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14587.28+128.59
S&P CDNX764.98-6.67
DJIA17355.50160.08
Nasdaq4623.854+57.715
S&P 5002013.09+18.44
CDN Dollar0.8868-0.0067
Gold1170.10-28.50
Oil80.02-0.88
Lumber325.10+1.50
Natural Gas3.715+0.066

 
Okanagan Companies
Pacific Safety0.12+0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.19+0.04
Cantex0.045-0.015
Anavex Life Sciences0.18+0.0089
Metalex Ventures0.03-0.005
Russel Metals32.72+0.50
Copper Mountain Mining2.035+0.065
Colorado Resources0.125-0.015
ReliaBrand Inc0.014+0.002
Sunrise Resources Ltd0.05+0.025
Mission Ready Services0.39+0.015

 





FEATURED Property
2120518#100 - 1553 Harvey Avenue
3 bedrooms 2 baths
$225,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Empty nesting: financial issues

Now that the children have ‘left the nest’, it is a good time to step back and take stock of your financial situation. Being on your own will probably cut household costs to some extent, b...


Keep your haunted home safe

Eerie sounds, spooky lights and Jack-o’-lanterns aglow—extra efforts at Halloween will keep visitors coming back for both tricks and treats. However, to keep the fun going, it’s imp...


What I learned in China

Photo: ContributedI will never be an expert on China. It is just too big, too complex and too old with layers of history and meaning that would take several lifetimes to unravel. As I said to my hosts...

_








Member of BC Press Council


22632