New York, August 22 (FinanceEnquiry.com) – The woes of the Best Buy (NYSE: BBY) have been increasing day by day. On Tuesday, the company withdrew its full-year earnings guidance. The company blames restructuring charges and weak sales as the basic reasons behind the second quarter’s 90 percent drop in net income.
The company’s revenue skidded around 3 percent whereas the revenues at the stores skidded 3.2 percent. Revenue in domestic market slumped 1.6 percent and in international market 8.2 percent.
The news of drop in profit came the day later as on Monday, Hubert Joly was appointed as the CEO and President of the company. He is expected to take the charge in September and the it is expected that that he will turn around the company. Though, Wall Street didn’t welcome the decision and the shares of the company fell 10 percent.
Since April, the company has been in news due to controversies. Former CEO Brian Dunn resigned in April as he was accused for having improper relationship with a female employee. Even Schulze had to put down his papers, as after the probe it came to light that he was aware about the relationship and failed to raise the alarm.
The profits of the company started declining as customers started browsing them for electronics and then buying them from somewhere else. Consumers are now more inclined towards smaller gadgets as compared to bigger ones.
In March, the company closed 50 stores, laid off 400 jobs and trimmed $800 million in costs as a part on its restructuring regime.
On Tuesday, shares of Best Buy fell 1.4 percent to close at $17.91.
New York, May 22 (FinanceEnquiry.com) – According to a fresh survey founded on online activities, Twitter is turning out to be the latest destination for online social media users, in particular the adolescent...Nikkei Share Average Inches Up to 5-1/2-year High - May 21, 2013
New York, May 21 (FinanceEnquiry.com) – Since retail investors scooped up underperforming stocks for instance Sharp Corp and Tokyo Electric Power Company, Incorporated, due to this, Nikkei share average...World Stock Markets Mount on Indications of Firm US Upturn - May 20, 2013
New York, May 17 (FinanceEnquiry.com) – As a result of reduced US sales, Wal-Mart Stores Inc reported feebler -than- anticipated quarterly earnings on May 16 and besides, it also mentioned that its profit for...Feeble Statistics Freshens Anticipation of Further Central Bank Activity; the Dollar Soars - May 16, 2013
New York, May 16 (FinanceEnquiry.com) – Feeble statistics freshened anticipations on May 16 of further central bank activity in Europe, maintaining yield-hungry investors concentrated on the area's stock...West Texas Intermediate Crude Close To Bottommost Level - May 15, 2013
New York, May 15 (FinanceEnquiry.com) – With indications of increasing supplies, West Texas Intermediate crude traded close to the bottommost stage in approximately two weeks. Antitrust regulators are inquiring...Oil Futures Settle Down - May 14, 2013
New York, May 14 (FinanceEnquiry.com) – As weighed by apprehensions over deteriorating demand in China and strong worldwide output, oil futures settled down for the third consecutive session. Futures guided...China Factory Production Expansion was Weak Last Month - May 13, 2013
New York, May 10 (FinanceEnquiry.com) – Finishing five consecutive weeks of falls that sent average rates on a few loan types to fresh record lows, mortgage rates directed higher in the present week on...China’s Customer Inflation Somewhat Stepped up Last Month - May 9, 2013
New York, May 9 (FinanceEnquiry.com) – Last month, consumer inflation of China stepped up to some extent, even though yet within a gentle range that leaves space for policymakers to modify policies in order to...