The beleaguered electronics retailer reported total revenues of $10.55 billion (down roughly 3% from the year-ago quarter) and adjusted operating income of $124 million, which breaks down to non-GAAP earnings of $0.20/share (down 49% year-over-year).
That means Best Buy came up just a bit short of analysts’ expectations — they forecasted earnings of $.31/share, and revenues of $10.6 billion in the days leading up to the release.
We’re also starting to see the effects of Best Buy’s retail streamlining process here, though it doesn’t yet seem as fruitful as shareholders would hope. The company’s retail footprint has shrunk to 41 million square feet (down 4% from 42.6 million square feet last year), which led to a slight bump in the average revenue per square foot — as the company continues to trim its physical presence and experiment with Apple-inspired layouts, plenty of eyeballs are watching to see if that number will jump in the coming months. The company announced a renewed focus on opening standalone Best Buy Mobile stores a few months back though, and the numbers make it seem like a smart move — same-store mobile phone sales were up 35 percent this quarter.
Those looking for earnings guidance from the company will be awfully disappointed, as Best Buy has confirmed that it will no longer do so for the rest of the fiscal year. In its release, the company cited its transition period (Joly is waiting in the wings for his expected debut in September) as one of the reasons for discontinuing the practice, and also noted that the company has revamped its earnings expectations for the rest of the year:
“Due to lowered expectations for industry wide sales and the uncertainty associated with several key product launches expected in the second half of fiscal 2013, the company has reduced its annual earnings expectations.”
It looks like incoming CEO Hubert Joly has his work cut out for him. I noted the other day that stock prices took a dip after it was announced that he would join the company as chief executive, and that slide continues unabated now that Best Buy has another disappointing quarter on the books — Best Buy’s stock price has dipped over 10% in pre-market trading.
This is a developing story, please refresh for updates.