Best Buy Q2 profit plummets 91%; suspends profit forecast
Minneapolis -- Best Buy Co. reported Tuesday that profit for the second quarter tumbled 91% to $12 million, compared with $128 million in the year-ago period. Revenue declined nearly 3% to $10.55 billion, missing Wall Street’s estimated $10.65 billion in revenue. Same-store sales fell 3.2% overall, more than the 2.6% drop expected by analysts.
On Aug. 20, Best Buy named turnaround expert Hubert Joly – from Carlson – as its new chief, in hopes he will lead the company out of disarray. Joly, who is not a popular choice among the investment community, begins the job in early September.
The new chief executive will face big challenges come September, charged with bring stability to a company that is fighting weak sales and a public fight with co-founder Richard Schulze as he angles to take the company private.
Best Buy also announced Tuesday that it will not provide or update earnings guidance for fiscal 2013.