Consumer electronics retailer Best Buy Co. Inc. (BBY) reported a fourth-quarter GAAP net loss of $1.7 billion, or $4.89 per share, compared with an income of $651 million, or $1.62 per share a year ago. The latest quarter results include $2.6 billion of charges mainly related to the actions announced on November 7, 2011, consisting of the purchase of Carphone Warehouse Group plc's share of the Best Buy Mobile profit share agreement and related costs, a non-cash impairment charge to reflect the write-off of Best Buy Europe goodwill, and restructuring charges.
Excluding charges, quarterly adjusted earnings were $871 million or $2.47 per share, an increase from $798 million or $1.98 per share for the prior-year period. On average, 25 analysts polled by Thomson Reuters expected earnings per share of $2.16 for the quarter. Analysts' estimates typically exclude one-time items.
Revenue totaled $16.63 billion compared with $16.08 billion in the earlier year period, while twenty-two analysts estimated revenues of $17.20 billion for the quarter. Comparable store sales for the quarter slid 2.4 percent versus a decline of 4.7 percent last year.
For fiscal 2013, the company sees earnings per share in the range of $2.85 - $3.25 on a GAAP basis, as well as $3.50 - $3.80 on an adjusted basis, on revenue of $50.0 billion - $51.0 billion range, reflecting a comparable-store sales decline in the range of 2 to 4 percent. Analysts project full-year earnings of $3.70 per share and revenue of $51.88 billion.
The company's actions to enhance business performance include 800 million in planned cost reductions by fiscal 2015 and $250 million in fiscal 2013; opening of 100 U.S. Best Buy Mobile small format stand-alone stores in fiscal 2013; as well as closure of 50 U.S. big box stores in fiscal 2013. Further, Best Buy intends to to grow domestic segment online revenue 15 percent in fiscal 2013.
by RTT Staff Writer
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