Best Buy, a multi-channel global retailer and developer of technology products and services, has reported 90% decline in net income to $12m for the second ended 4 August 2012, compared to $128m for the same period in 2011.
The company posted 3% decrease in net sales for the period to $10.55bn, compared to $10.86bn in 2011, while its operating income decreased 87% to $33m, compared to $260m for the same period in 2011.
Net sales for the six months ended 4 August 2012 increased by 0.3% to $22.16bn, compared to $22.23bn in 2011. Besides, the net earnings for the period declined by 50% to $170m, compared to $340m last year.
The company’s operating income totaled to $295m, while online sales continue to increase by 14%.
Best Buy has appointed Hubert Joly as a new CEO on 20 August 2012. He is expected to begin his new role in early September.
The International segment comparable store sales decline of 8.2% was driven by the lower growth in consumer spending in China and the continued impact from the expiration of government sponsored programmes, which negatively impacted sales in Five Star.
Market softness in notebooks, digital imaging and home theater in Canada also contributed to the international comparable store sales decline.
With lowered expectations for industry wide sales and the uncertainty associated with several key product launches expected in the second half of fiscal 2013, Best Buy has decided to postpone financial forecasts for the second half of 2012.
Best Buy operates about 1,000 stores in the US, Canada, Puerto Rico, Mexico, and China.