Tuesday, September 16th8.9°C
23373
22924

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

21196


Recent Trending




Today's Market
S&P TSX15456.23-26.329
S&P CDNX977.20-4.30
DJIA17035.904.76
Nasdaq4514.601-4.302
S&P 5001987.28+3.15
CDN Dollar0.9067+0.002
Gold1233.50-1.60
Oil93.71+0.79
Lumber349.00+1.00
Natural Gas3.962-0.035

 
Okanagan Companies
Pacific Safety0.175-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.25-0.04
Cantex0.06-0.01
Anavex Life Sciences0.250.00
Metalex Ventures0.065-0.005
Russel Metals36.05-0.12
Copper Mountain Mining2.65-0.05
Colorado Resources0.155-0.01
ReliaBrand Inc0.028+0.004
Sunrise Resources Ltd0.02-0.005
Mission Ready Services0.29+0.025

 



22784

FEATURED Property
2061704#132, 2550 Hollywood Rd N
2 bedrooms 2 baths
$319,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Power-save your way to a down payment

Part 1 of 2 Photo: Thinkstock.com1. Move in with your parents or in-laws Explain that you're thinking strategically in moving back home. The quickest way to get into the housing market is to ma...


Price Guarantees

Article written by Linda Bustos Though I’d never recommend “lowest prices” as a unique selling proposition, I notice many retailers use a Price Match Guarantee or even a 110% Guara...


Brangelina and Celebrity vs Philanthropy

This week my wife wrote a blog for our charities website, I thought you may enjoy reading it here: I was planning to write about the incredible philanthropic Miss Angelina when, funnily enough, she ...

_








Member of BC Press Council


23123