Best Buy to close 50 stores, cut costs

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Best Buy Co. is closing 50 stores in the U.S. in fiscal 2013 and is looking to cut costs by $800 million by fiscal 2015.

The biggest U.S. specialty electronics retailer also says it lost money in its fiscal fourth quarter partly because of a restructuring charge, the Pioneer Press said.

Best Buy lost $1.7 billion, or $4.89 per share, for the period that ended March 3. That compares with a profit of $651 million, or $1.62 per share, a year ago.

Revenue rose 3 percent to $16.08 billion, however, and earnings were $2.47 per share, above analysts' estimates of $2.15 per share, the Press said.

The electronics retailer previously told investors that it wanted to reduce its U.S. square footage footprint by more than 20 percent over the next three to five years, the Star Tribune said.

Last month the company hired former Starbucks chief information officer Stephen Gillett to oversee its digital operations. The Richfield-based company hopes to accelerate its digital sales, one of its fastest-growing businesses, the Tribune said.

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This page contains a single entry by tabbe019 published on March 29, 2012 9:26 AM.

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