On a GAAP basis, Best Buy posted a net loss of $0.04 per share, which includes restructuring costs.
The company’s CEO said:
In line with trends experienced over the last three years, Best Buy’s third quarter financial performance was clearly unsatisfactory. On November 13, we shared our candid assessment of Best Buy’s situation and unveiled Renew Blue, a set of priorities to begin re-invigorating the company’s performance and rejuvenating Best Buy. The results we are reporting today only strengthen our sense of urgency and purpose.
The company guided full-year free cash flow in the range of $850 million to $1.05 billion, down from a previously estimated range of $1.25 to $1.5 billion. The company did not provide EPS or revenue estimates. The consensus estimates call for EPS of $2.81 on revenues of $49.14 billion for the 2013 fiscal year ending in January.
Same-store sales in the third quarter fell 4.3%, and Best Buy’s U.S. segment saw operating income fall from $249 million in the third quarter a year ago to $16 million (unadjusted; $50 million adjusted). The company blamed the decline on “lower gross profit rate, higher SG&A expense and lower revenue.” That about covers everything.
The most amazing thing is that Best Buy’s founder, Richard Schulz, continues to seek funding help to take the company private. We are speechless at the idea.
Shares are down about 6% in premarket trading, at $12.95, which is below the current 52-week range of $13.52 to $28.52. Thomson Reuters had a consensus analyst price target of around $17.00 before today’s results were announced.
Paul Ausick
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