Tuesday, April 21st17.9°C
25933
25870

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 TSX15346.44-66.16
S&P CDNX700.17-3.48
DJIA17949.59-85.34
Nasdaq5014.10+19.50
S&P 5002097.29-3.11
CDN Dollar0.8148+0.0002
Gold1199.10-3.80
Oil55.50-0.88
Lumber247.80+4.90
Natural Gas2.565-0.010

 
Okanagan Companies
Pacific Safety0.135+0.020
Knighthawk0.010.00
QHR Technologies Inc1.45+0.03
Cantex0.035+0.005
Anavex Life Sciences0.445+0.060
Metalex Ventures0.10+0.02
Russel Metals27.00-0.42
Copper Mountain Mining1.07-0.03
Colorado Resources0.105-0.005
ReliaBrand Inc0.005+0.001
Sunrise Resources Ltd0.04+0.00
Mission Ready Services0.18-0.00
Decisive Dividend Corporation1.70-0.10

 



25538

FEATURED Property
2134059Five Acres in the Mission Lake and City view
$2,200,000
more details
Click here to feature your property
Please wait... loading


Calling on your help!

Has the internet flattened prices as predicted? Has the internet created opportunities for your business to find higher priced markets further afield? Is posting prices on your website a good thing o...


Living with Plan B

“It does not do to leave a live dragon out of your calculations, if you live near him.”― J.R.R. Tolkien, The Hobbit Photo: Thinkstock.comHuman beings are optimists by nature. Whether...


Reverse mortgage solution

With the housing and financial markets on solid footing, some retired Canadians may consider cashing in their growing assets to enjoy vacations and major home renovations. Others, on the other hand, a...

_



26069

26091


Member of BC Press Council