Best Buy 4Q Net Declines On Costs, Weak TV Sales
NEW YORK (AP) -- Best Buy Co.'s fourth-quarter net income fell 16 percent as the company restructured and faced weak sales of TVs and other electronics.
But adjusted results beat expectations. Best Buy's stock rose 3 percent in premarket trading.
The largest U.S. electronics chain says net income fell to $651 million, or $1.62 per share, from $779 million, or $1.82 per share.
Best Buy has been restructuring its international operations, particularly in China, and cutting costs in its U.S. supply chain. Excluding costs for those moves, net income totaled $1.98 per share. That beat the $1.84 analysts expected, according to FactSet.
Revenue edged down 2 percent to $16.26 billion. U.S. revenue fell 4 percent to $12.1 billion, while international revenue rose 4 percent to $4.1 billion.
New TV technologies, such as 3-D and Internet-enabled TVs, have failed to lure shoppers to shell out for an upgrade in the U.S.
Revenue from TVs and entertainment hardware and software fell, partly offset by higher sales of tablet computers and mobile phones.
"Overall demand for key consumer electronics products was a challenge for the industry last year," said CEO Brian Dunn in a statement.
Revenue in stores open at least 14 months fell 4.6 percent during the three months ending Feb. 26, including a 5.5 percent decline in the U.S. That's an important retail measurement because it excludes stores that open or close during the year.
Best Buy Co., based in Minneapolis, is contending with a shifting electronics market as more people buy online or at discount stores. The company is remaking its business and concentrating its expansion on small stores that specialize in mobile devices.
For the year, net income fell 3 percent to $1.28 billion, or $3.08 per share, from $1.32 billion, or $3.10 per share last year.
Revenue rose 1 percent to $50.27 billion from $4.97 billion.
In fiscal 2012, the company expects net income of $3.30 to $3.55 per share, excluding costs related to restructuring its international operations and cutting costs in its U.S. supply chain.
Analysts expect net income of $3.56 per share.
Best Buy predicts revenue of $51 billion to $52.5 billion. Analysts expect $52.1 billion.
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