Best Buy, the retailer resisting a takeover attempt by its founder, reported second-quarter profit that trailed analysts’ estimates and suspended providing an earnings forecast as sales of computers and televisions dropped.
Net income fell 91 percent to $12 million, or 4 cents a share, from $128 million, or 34 cents, a year earlier, the Richfield, Minn.-based company said Tuesday in a statement. Excluding restructuring charges and other items, profit was 20 cents a share. Analysts’ average estimate was 31 cents.
Best Buy on Monday named Hubert Joly as its new chief executive to oversee a turnaround plan that entails shifting to smaller locations in a bid to fend off and Wal-Mart Stores. The results, which included a 3.2 percent same-store sales decline as shoppers bought fewer televisions and notebook computers, could bolster founder Richard Schulze’s case that the company needs urgent change.
Best Buy sank 1.4 percent to $17.91 at the close in New York. The shares have tumbled 23 percent this year.
Second-quarter sales fell 2.8 percent to $10.5 billion. The average estimate of 19 analysts was $10.6 billion.
