Consumer electronics retailer Best Buy Co., Inc. (BBY: Quote) on Tuesday reported a 25 percent decline in profit for the first quarter, reflecting higher restructuring charges and lower comparable store sales.
However, adjusted earnings topped analysts' expectations and the company maintained its earnings outlook for fiscal 2013.
Comparable store sales at the company's domestic segment declined 3.7 percent on top of a 3.8 percent decline in the year-ago period.
Sales growth in tablets, mobile phones, eReaders and appliances was more than offset by declines in notebooks, gaming, digital imaging and televisions. The domestic segment's operating profit declined 19 percent to $295 million.
The International segment's comparable store sales declined 10.5 percent, compared to 0.2 percent decrease in the prior-year period. The segment's operating loss of $33 million was driven primarily by lower revenue in Europe as well as China and increased competitive conditions in Europe.
Best Buy, which is also known as the 'big blue box' because of the prominent design on Best Buy stores, said it has closed 41 of the 50 U.S. big box store closures planned for fiscal 2013.
The Richfield, Minnesota-based retailer reported first-quarter net earnings of $158 million or $0.46 per share, down from $212 million or $0.53 per share in the year-ago period.
Excluding one-time charges, adjusted earnings from continuing operations grew to $0.72 per share from $0.65 per share in the year-ago quarter.
On average, analysts polled by Thomson Reuters expected the company to earn just $0.59 per share. Analysts' estimates typically exclude special items.
Revenue for the quarter grew 2 percent to $11.61 billion from $11.37 billion in the same quarter last year. Analysts had a consensus revenue estimate of $11.52 billion.
Best Buy's total comparable store sales for the quarter declined 5.3 percent on top of a 3 percent drop in the same period last year.
Looking ahead to fiscal 2013, Best Buy maintained its outlook for adjusted earnings in a range of $3.50 to $3.80 per share, including the impact of expected share repurchases and excluding restructuring costs. Analysts expect the company to earn $3.59 per share for the year.
Including restructuring charges, the company affirmed its outlook for earnings in a range of $2.85 to $3.25 per share.
Last Monday, Best Buy said that its chairman Richard Schulze will retire from the position, with long time director Hatim Tyabji succeeding him on June 21.
Schulze's move to step down came after results of an independent probe into personal conduct allegations involving former CEO Brian Dunn were publicly released. Dunn resigned in April amid allegations that he was having an inappropriate relationship with a female employee of the company.
BBY closed Monday's trading at $18.17, up $0.15 on a volume of 10.08 million shares. In Tuesday's pre-market, the stock is adding $0.63 or 3.47 percent to $18.80.
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by RTT Staff Writer
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