No matter how results are viewed, Best Buy Co. took a beating in the second quarter with GAAP net earnings from continuing operations coming in at $12 million, or four cents per diluted share, versus $150 million, or 39 cents per diluted share, for the prior-year period. In the absence of previously announced restructuring charges, second quarter adjusted net earnings from continuing operations were $68 million, or 20 cents per diluted share, which compares unfavorably with a 31 cent Thomson Reuters average analyst estimate.
Overall revenues fell by 2.8% to $10.55 billion with comparable store sales declining 2.8%. In the Domestic division, revenues tumbled 2.2% to $7.8 billon with comps declining 1.6%.
In the Domestic division, declines in gaming within the Entertainment segment, digital imaging and televisions within the Consumer Electronics segment and notebooks within the Computing and Mobile Phones segment led comp declines. Growth in tablets and mobile phones within the Computing & Mobile Phones segment, the Appliances segment, and eReaders within the Consumer Electronics segment provided some offset to comp declines elsewhere.
Best Buy suspended its earnings forecast for the remainder of the year amid uncertainty of its direction. Founder and former chairman Richard Schulze has made an offer to take the company private while Best Buy’s board just announced that it had appointed turnaround expert Hubert Joly CEO.