Best Buy, whose shares were down 4 percent in
premarket trading, also said it expected operating margins to
remain under pressure due to higher sales of lower-margin items,
continued industry softness and greater discounting in Canada
"... Industry-wide sales are continuing to decline in many of
the consumer electronics categories in which we compete," Chief
Financial Officer Sharon McCollam said in a statement.
Sales of consumer electronics such as TVs and desktop and
notebook computers fell 2.5 percent industrywide in the quarter,
the company said, citing NPD Group's Weekly Tracking Service.
The company also said it expected continued softness in mobile
phone sales ahead of the release of new models.
Apple Inc is expected to launch its latest iPhone next month.
Best Buy's revenue fell 4 percent to $8.89 billion in the second
quarter ended Aug. 2. Analysts on average had expected $8.99
billion, according to Thomson Reuters I/B/E/S.
Same-store sales fell 2.7 percent, with U.S. same-store sales
slipping 2 percent.
Net income attributable to shareholders fell to $146 million, or
42 cents per share, from $266 million, or 77 cents per share, a
The year-earlier profit included a gain of $229 million from
Excluding items, the company earned 44 cents per share from
continuing operations, beating the average analyst estimate of
Best Buy's shares were trading at $30.78 before the bell. Up to
Monday's close, the stock had fallen 20 percent since the start
of the year.
(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by
[© 2014 Thomson Reuters. All rights
Copyright 2014 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.