It was a rough day for Black Friday as they released a confirmation press release on a significant decline in their Fiscal Third Quarter 2013 Earnings. The BBY stock declined 13% today trading under (NYSE: BBY) after their losses were announced and news spread like wildfire.
The Best Buy losing numbers really depend on what part of the balance sheet you look at but for the 3rd quarter it was a $10 million 3rd quarter net loss. From the financial report they state the loss in operating income as, “Domestic segment operating income for the three months ended November 3, 2012 declined to $50 million ($16 million on a GAAP basis) from $249 million in the prior-year period.”
If you thought that Best Buy’s ability to sell Flat Screen TVs, Electronics and Appliances was hurting in the US, you’d be interested to see where they’re really getting hit. From the financial report they reveal their international woes with these statements: “Excluding previously announced restructuring charges, the International segment reported an adjusted operating loss of $2 million ($4 million on a GAAP basis) for the three months ended November 3, 2012. The decline was due to Canada, Europe and China, driven by lower revenue in Canada and China and lower gross profit in Europe.”
This has everyone wondering if Best Buy’s Black Friday Ad & specials will bring in customers and introduce profit to their bottom line. The reason Black Friday gets it’s name is it often pushes stores from the red in their balance sheets to black, or in profit. That may be a leap this year for Best Buy’s Black Friday sale.
Best Buy can be found pushing out information early on the deals they’ll have available in their store with their, “Best Buy Doorbusters” promotion. On their website they state their Doorbuster sales will start when their doors open at 12am on Friday November 23rd, 2012. It’s not just products like Samsung LED TVs that Best Buy is promoting but their Smartphone division is trying to push the most popular phone on the market with a $48 deal for a Samsung Galaxy S III this year. Laptops are also cheap with entry level prices of $249 and the normal Apple iPod product discounts and Camera deals to woo consumers.
Investors that are heavily invested into the BBY stock however are crossing their fingers this year. They want to see that those Black Friday deals at Best Buy will add up to black because the red is looking pretty bleak this year for Best Buy. Are you planning on standing in line this year for Best Buy’s Black Friday deals?
Best Buy Posts $10 Million Earnings Loss
Bad news for retailer Best Buy (NYSE:BBY) this morning, yet another sign of big box retailer woes. The electronics retailer posted a $10 million loss in its fiscal first quarter on EPS of just three cents, lower than the 12 cents analysts were expecting.
Same store sales also fell 4.3 percent, more than the 3.3 percent estimate. The company’s CEO Hubert Joly said they continue to work on acquiring Best Buy exclusive products to keep customers from moving to places like Amazon (NASDAQ:AMZN) and Wal-Mart (NYSE:WMT).
Greek Aid Talks, Best Buy Reports $10 Million Loss
Passfail.com News: Best Buy Announces Earnings
Best Buy (BBBY) announced that it lost $10 million, or 3 cents per share, in its third fiscal quarter, versus a profit of $156 million, or 42 cents per share, in the same period lat year. Excluding items, the company earned three cents per share, while analysts had expected 13 cents per share. Revenue fell by four percent to $10.75 billion, matching expectations.
Though the company continues to cut costs and improve stores, it faces an uphill battle with online electronics retails such as Amazon.com (AMZN), with many consumers going to Best Buy stores to view items, only to purchase them online for less.
Shares are lower in early trading.
This is Sayoko Murase for Passfail.com, taking you behind the ticker.
For Passfail.com, Behind The Ticker (TM)