Best Buy earnings beat, stock tanks
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Best Buy reported third-quarter earnings before the market open on Thursday.
The consumer-electronics retailer's top-line sales were in line with analysts' expectations, although comparable-store sales — at locations open for at least one year — fell short of forecasts.
Shares dropped by as much as 10% in premarket trading, and fell by as much as 8% just after the market open.
Total comparable-store sales grew 0.8%, below the expectation for 1%. They were hurt by declining sales of mobile phones, tablets, and cameras. Revenues totaled $8.82 billion, down 2% year-on-year, versus $8.83 billion forecast.
Best Buy reported adjusted earnings per share of $0.41 versus $0.35 expected, according to Bloomberg.
International sales declined 30% to $729 million, following the closure of about half of its Canadian Future Shop stores, and the laying off of about 1,500 workers. Best Buy said ongoing softness in Canada's economy, and a negative foreign-currency impact, also hurt its sales abroad.
CEO Hubert Joly said in the statement that the company was excited about its holiday product offerings, which would include "attractive prices," or, discounts. Google
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