Skip to comments.BEST BUY IMPLODES: Misses Revenue, Firing 400, Closing 50 Stores
Posted on 03/29/2012 8:06:03 AM PDT by Hojczyk
Electronics retailer Best Buy announced it would close 50 big box locations in the U.S. as it refocuses its operations around mobile.
The company said it will launch 100 new mobile locations as it retools its domestic store format. The announcement was timed with the company's fourth quarter report, where it sharply beat analyst expectations on the bottom line. Over the final quarter of 2011, revenue grew three percent to $16.6 billion while earnings per share hit $2.47.
However, analysts polled by Bloomberg had forecast top line results of $17.15 billion, some $500 million more than the company reported. The quarter also benefitted from an extra week in the company's fiscal calendar excluding the week would mean revenue actually fell 1.1 percent. Shares were down 6 percent in the first minutes of trading.
The company saw same-store sales decline 2.3 percent during the period, highlighting its difficulties as the U.S. economy gained steam during the first few months of 2012. Best Buy saw weakness across the board, with sales suffering in gaming, notebooks, digital imaging and televisions.
Best Buy has rapidly been trying to turn its operations around as it has seen peers CompUSA and Circuit City fail. Consumers have been using its locations as a testing ground for products before making final purchases at competitors like Amazon and Walmart.
Best Buy is targeting more than $800 million in cost savings by 2015, largely expected through layoffs and the aforementioned store closings. The targets are roughly split between corporate, retail and declines in costs of goods sold. The company will layoff 400 employees within its management and support channels.
(Excerpt) Read more at finance.yahoo.com ...
The AP is spinning this as good news, i.e. net 50 store gain. Although the 100 new stores are basically mall kiosks. LOL
Looks like they missed the memo that the economy is improving!
They have the same problem as book stores had ...look and then go
to the internet to buy...
This was predictable.
They have become an accessory store.
We already have Radio Shack for that.
The customers are over at the Apple Store.
BB is a place that I don’t like going to, because the ambiance is annoying. Loud music (usually some post-modern garbage), flashing TVs, useless salespeople. It’s a complete package of customer repellent!
I used to avoid Home Depot for similar reasons. They used to have a PA system that always preceded an announcement with this obnoxiously loud alarm tone. It was very distracting, and they did away with it 10-15 years ago (probably due to customer complaints).
No loss. I never liked it. The one in Marietta treated all exiting customers like thieves.
Looks like that strategy promoting Eid al-Adha and dissing Christmas is finally paying off.
Trying hard to give a damn about them... Nope - not able to at all.
Yeah. Had one guy try to convince me that one 3D TV “popped out” more because it had more lines than another (720p vs. 1080p). Just smiled & nodded, refraining from speaking my mind.
Huh? Every media report on the economy reads like a verse of Oh!Susanna.
I agree. I won a small claims judgement against them during the ‘90’s, their customer service is/was abominable. I noticed that Best Buy had a class action against them in the early 2000’s for the same reasons I brought my claim against them(shoddy products/service). Best Buy down the tubes, good riddance.
Hell, I cut out the "look in the Big Box Stores' Part of the equation years ago.
Last time I was in a Big Box Store (Sam's Club) to purchase anything electronic was to Pick Up my TV I ordered online They wanted 70 bucks to deliver to my home and we go there at least once a month to stock up on bargains on food and cleaning supplies.
I've give up trying to get info in the Big Box stores. Usually when I ask someone who works their about specifics (like the resolution on a copier) I get a blank stare and then they call a Manager who seems to know less.
The good electronic online sites post just about everything you would want to know about an item and I can compare stuff quickly side by side right on my 'puter screen.
Thisis BAD news as Americans had less or little to spend they just kept on buying those electronic toys... I have said when you see sales of electronics dwindle and/or cable/satellite TV subscriptions fall then we r in deep downward fiscal times. I am sure gas is cutting into every purchase outside the pump.
Well....I agree BB was bad...but, have had great experiences with COSTCO....just took back a printer...the paper jammed so bad I couldn’t get it out....they just took it back, and replaced it for me!
Wow. Pertty soon if you need a new computer you’ll have to buy it online.
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