Consumer electronics retailer Best Buy Co., Inc. (BBY) reported Tuesday a loss for the first quarter compared to a profit last year, when results included Super Bowl big-screen sales.
The company also said it will not provide financial guidance but indicated a weak second quarter.
"As expected, first quarter Domestic comparable store sales were down 1.1%. This was the result of the Super Bowl shifting into last year's fourth quarter as well as our decision to reduce sales in certain non-core businesses," President and CEO Hubert Joly said in a statement.
Joly added, "Excluding these impacts, Domestic comparable store sales were flat for the quarter despite no new major product launches and late deliveries in the smartphone category, and we delivered a better-than-expected non-GAAP diluted EPS of $0.32."
The Richfield, Minnesota-based retailer, which is also known as the 'big blue box' because of the prominent design on Best Buy stores, reported a net loss of $81 million or $0.24 per share for the first quarter, compared to net income of $158 million or $0.46 per share in the prior-year quarter.
The company noted that, as a result of the agreement for the sale of its 50 percent interest in Best Buy Europe, results from European operations are presented as discontinued operations.
Net earnings from continuing operations declined to $97 million or $0.29 per share from $169 million or $0.49 per share in the year-ago quarter.
Excluding charges, Best Buy reported adjusted earnings from continuing operations of $110 million or $0.32 per share, compared to $262 million or $0.76 per share last year.
On average, 18 analysts polled by Thomson Reuters expected the company to report earnings of $0.25 per share for the quarter. Analysts' estimates typically exclude special items.
Revenue for the quarter declined to $9.38 billion from $10.37 billion in the same quarter last year. Comparable store sales decreased 1.3 percent on top of a 5.2 percent drop last year.
Wall Street analysts had a consensus revenue estimate for the quarter of $10.64 billion, although Best Buy indicated that the estimates included results from Europe, which were not included in the company's reported revenue figures.
In a conference call, Joly indicated that the company would have about $10.8 billion in revenues if results from Europe were included.
Best Buy's domestic revenues for the quarter declined 9.6 percent to $7.98 billion, with comparable store sales down 1.1 percent. International revenues also decreased 9.6 percent to $1.40 billion, with comparable store sales dropping 2.8 percent. The company noted that the online channel delivered a 7.1 percent revenue increase in the domestic segment.
Looking ahead to the second quarter, the company said it expects the ongoing investment in price competitiveness that contributed to weak results in the first quarter to continue into the second quarter.
The company also sees disruptions caused by the physical deployment of the Samsung Experience Shops and the optimization of retail floor space to have operational impacts during the second quarter.
"Looking ahead, we remain focused on making progress on our Renew Blue priorities announced last November and reiterated in March. During the second quarter, we will, in particular, complete the deployment of the Samsung Experience Shops and make significant progress in our efforts to optimize the allocation of our retail floor space to more attractive product categories, so as to increase revenue and operating profit per square foot," Joly noted.
BBY closed Monday's regular trading session at $26.81, down $0.08 on a volume of 7.88 million shares. In the past 52-week period, the stock has been trading in a range of $11.20 to $27.37.
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