Best Buy narrows loss in fiscal fourth quarter
BY Wire reports
Saturday, March 02, 2013
3/02/13 at 5:17 AM
Best Buy Co. lost less money in its fiscal fourth quarter as efforts by new CEO Hubert Joly to make the company more efficient showed glimmers of paying off.
The electronics chain also said Friday that it did not receive a buyout bid from co-founder Richard Schulze by a Thursday deadline, putting to rest the immediate possibility of the retailer being taken private.
Richfield, Minn.-based Best Buy has been working to turn around results as it faces tough competition from online retailers and discounters. It has cut jobs, invested in training employees and started matching online prices.
Results show the changes are beginning to help. Revenue at U.S. stores open at least 14 months rose 0.9 percent, the most in 11 quarters.
"We have momentum building," Joly said. "We're at the beginning of a transformation taking hold."
The net loss for the quarter ended Feb. 2 totaled $409 million, compared with a loss of $1.82 billion in the same period a year ago. Revenue was nearly flat at $16.71 billion.
Best Buy CEO Hubert Joly: "We have momentum building. We're at the beginning of a transformation taking hold."