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Best Buy profit drops in Q2

Updated: 2012-08-22 07:27
( Xinhua)

Best Buy profit drops in Q2

A building is reflected in the glass of a Best Buy store in New York August 21, 2012. Best Buy Co Inc suspended giving a profit outlook and conducting share buybacks for the rest of the year, as it looks to give its newly named chief executive a chance to understand the business.?[Photo/Agencies]

WASHINGTON - Best Buy, the world's largest consumer-electronics retailer, on Tuesday reported a drop in second-quarter profit due to fewer sales and restructuring costs.

Net income decreased to $12 million in the fiscal quarter ended August 4, down 91 percent from a year earlier, the company said in a financial report.

Excluding some items, Best Buy's profit was 20 cents a share in the quarter, weaker than analyst's average estimate of 31 cents.

Sales by stores open at least 14 months dropped 3.2 percent as consumers bought fewer televisions and notebook computers. The total quarter revenue also declined by 3 percent to 10.856 billion dollars, said the company. In the quarter, Best Buy spent 91 million dollars in restructuring, which hurt its profit.

In addition, the company suspended earnings forecast for the second half of the fiscal year 2013 because of the new CEO and lowered expectations for industry-wide sales.

Best Buy named Monday Hubert Joly as its new chief executive officer. The company also said it would not repurchase stock for the year.

 

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