Best Buy announces loss, store closings

(File) / AP Photo/Brainerd Dispatch, Steve Kohls

(AP) MINNEAPOLIS - Best Buy Co. (BBY) is closing 50 stores in the U.S. in fiscal 2013 and is looking to cut costs by $800 million by fiscal 2015. The biggest U.S. specialty electronics retailer also says it lost money in its fiscal fourth quarter partly because of a restructuring charge, but its adjusted results topped Wall Street's expectations.

Best Buy lost $1.7 billion, or $4.89 per share, for the period ended March 3. That compares with a profit of $651 million, or $1.62 per share, a year ago.

Taking out the charge and other items, earnings were $2.47 per share, above analysts' estimates of $2.15 per share.

Revenue rose 3 percent to $16.08 billion, but missed Wall Street's $17.18 billion estimate.

Best Buy's stock gained 3.8 percent, to $27.65 in trading.

[TheIrish74]

Best Buy is one of the worst. Price match my rear end. I went in to buy a tablet that was sold out everywhere except the local Best Buy. The tablet EVERYWHERE was $199 and Best Buy was selling it for $499 for some reason unbeknownst to anyone. I proved that they were overcharging and even the manufacturer's website was $199 and THEY OUTRIGHT REFUSED ME AND ASKED ME TO LEAVE THEIR STORE AFTER I POLITELY REQUESTED TO SEE A MANAGER. I'm glad their losing money. They will be okay I'm sure from lining their pockets from overcharging for items.

[minidanas]

I'm happy the evil WorstBuy is suffering loss and closing stores. They announced they didn't want certain types of customers: the ones who are informed, who do price shopping and don't buy overpriced mediocre junk, and buy only what's competitively priced or on sale. They were being ruthless capitalists, I guess. Well, guess what? Now everyone is informed, and everyone is making ruthlessly capitalist decision, which is go buy somewhere else if it's cheaper and better.

So capitalists fell victim to the very capitalism - music to my ears.

[YStorm]

Yanno, I work at a Best Buy and we offer the consumers the best we can. I can't help it if my customer is exceedingly stupid, won't listen to what I am telling her, rude, and cheap! It is usually women that act that way too! And I looks like you didn't really shop at a best buy because they do price matching IF the machine is the same one. They are competitive. You are mean and go away!

[Nuff__said]

Personally, I stopped shopping at Best Buy many years ago when my debit card AND my PIN were hacked. I purchased a computer there and three days later my debit card AND my PIN were used to make a purchase at a Best Buy in store in California.

[Truth_Bee_Told]

Truth is they don't need the 45,000 square feet of retail space per location that they currently have. Given that more and more people now buy online, it makes more sense to warehouse their product out in the middle of nowhere where real estate is cheap and then ship it to the end user. They could greatly scale down their stores and just stock a display sample of each product so that people who want to be hands on can come in and check it out before ordering.

[Resin-Smoker]

You'd have to be nutts to buy from BB as their prices are way over inflated.

[cp102]

I prefer to buy from Amazon, I can do my own research and decide which is the best product for myself. Then I can find the best price. I dislike intensely someone trying to tell me about a product that they have little knowledge of. Or pushing an extended warranty, or addtional items that cost 3 times more than they should. Best Buy needs to get back to the basics of what made them a Best Buy when they first started.
I use to shop there I rarely visit a Best Buy now.

[MegaProcrastination]

Couldn't happen to a nicer company! A few years ago a Best Buy opened in our area. I was really excited at first. The sales staff in this store are really friendly and helpful but, they aren't extremely knowledgeable. At one point we were buying a laptop and paid an extra $100 to get one that had the bloatware already removed. We got it home, powered it up and it was full of junk. Another time I needed a switch box so dropped into BB to get one. The thing was $30 for a very simple two-sided box. A while later I needed another one and happened to be in WalMart. I found a much better three-switch box and it was only $20. For a while after BB opened I comparison shopped a few times and most times I could beat their prices across the street at Costco or WalMart and if not I could usually save about 70% by shopping online. I don't know what is "best" about Best Buy unless it's the best rip-off in the industry.

[centralcacoast]

I lost respect for Best Buy when my son brought in his laptop to the Geek Squad. Told him it was toast, needed to replace it and sold him on a new laptop. He was sick over the lost pics on the computer. I took his computer, bought a $7 start up disc and fixed it in about 10 minutes following instructions on the internet. Selection isn't very good at our local Best Buy.

[bbyemployee]

hypnotoad:

YOU KNOW NOTHING!!! best buy does not have restocking fees, the average employee age is 25, & we do not sell refurbished items in the store (only online).
i recommend getting some sleep & to stop staring at your crappy-panel computer monitor.

[rwsmith29456]

The American way of business. Instead of improving their company to increase profits, they cut back on business. This is the beginning of the end for a lot of companies.