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Woes Continue Through Best Buy Q3

Today, Best Buy Co. announced a GAAP net loss from continuing operations of $13 million, or four cents per share, for the third quarter ended November 3, and net earnings from continuing operations, adjusted to exempt one-time charges, of $10 million, or three cents per diluted share. In last year’s third quarter, Best Buy posted net earnings from continuing operations of $173 million, or 47 cents per diluted share.

Best Buy missed a Thomson Reuter’s average analyst earnings estimate of 12 cents per share.

Operating income generated in the United States declined to $50 million on an adjusted basis in the third quarter and $16 million on a GAAP basis from $249 million in the prior-year period. The decline, said Best Buy, resulted from a lower gross profit rate, higher SG&A expense and lower revenue.

Domestic segment revenue declined 4.7% to $7.7 billion compared to the year-earlier period, reflecting a 4% comparable store sales slide and store closure impact, Best Buy acknowledged.

On a brighter note, Best Buy recorded a revenue gain in excess of 10% in its online business to $431 million. In addition, the company posted positive comp growth in mobile phones, appliances and tablets/e-readers. However the growth in those segments couldn’t offset comp declines in notebook computers gaming, digital imaging and televisions.

Best Buy’s International segment reported a third quarter adjusted operating loss of $2 million, or $4 million on a GAAP basis, with revenue’s coming in essentially flat at $3.1 billion. Comps, though, declined 5.2% as declines in Canada and China more than offset growth in Europe, the retailer said.

Overall, Best Buy recorded revenues of $10.8 billion in the most recently complete period versus $11.1 billion in the year-ago quarter.