logo
Share SHARE
FONT-SIZE Plus   Neg

Best Buy Reverses To Loss In Q4; Guides FY13 - Quick Facts

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

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
General Motors (GM) announced on Wednesday that it has been approved to voluntarily delist from the Toronto Stock Exchange. The auto giant reassured its shareholders that the TSX delisting will not impact its current listing on the New York Stock Exchange. Subsequent to the bankruptcy filing of German no frills airline Air Berlin (AIBEF.PK), Lufthansa airline is strongly pursuing to acquire Air Berlin. Meanwhile, Ryanair, its Irish rival, accused conspiracy in the deal and said that the acquisition move will breach the existing competition rules in Germany in general and EU in particular. The Royal Bank of Scotland plans to cut 880 jobs from its IT department in London by 2020, a UK labor union reported. Britain's Unite union claimed on Tuesday that the bank informed its staff about a further 40 percent cut of permanent IT jobs, which is said to be part of ongoing deep cost-cutting at the taxpayer-owned bank. The bank also plans a 65 percent reduction of contractors.
comments powered by Disqus
Follow RTT