News Worms
News Worms

Best Buy to shutter all its mobile phone stores by May

Best Buy to shutter all its mobile phone stores by May

Best Buy's sales at established stores climbed 9 percent in the fourth quarter ended February 3, almost triple analysts' average expectation for a 2.9 percent increase, according to Consensus Metrix.

Excluding one-time items, Best Buy earned $2.42 a share, which was 38 cents higher than analysts' expectations, based on a Thomson Reuters survey. Revenue reached $15.4 billion during the quarter, a 14% increase over the year-ago quarter. The phone stores made up just over 1 percent of overall revenue.

Online sales jumped 17.9 percent in the USA from a year ago, accounting for $2.8 billion of business in the quarter, or about 20 percent of Best Buy's total revenue.

Shares rose 2.2 percent to $74 in early trading.

Employees who work at the mobile stores will be offered severance, but Joly said Best Buy will work to transfer as many as possible to nearby stores or to other roles such as its growing ranks of in-home advisers. "The level of energy and dedication to serving customers that I see across the company is truly inspiring".

Best Buy plans to close all of its 250 small-format mobile phone stores in the United States by the end of May. "We believe the best way to serve customers is to sell phones in channels where they have access to our whole range of connected devices". The company will report its earnings for the fourth-quarter Thursday. Macy's broke out of its three-year sales funk, and a strong home-improvement market pushed Home Depot's profit higher.

With a windfall tied to lower corporate tax rates, the retailer handed out bonuses of $1,000 to full-time employees and $500 to part-timers, many of them front-line workers at its stores.

"The company was firing on all cylinders", Joly told reporters on a conference call.

Meanwhile, Kohl's enjoyed a 6 percent increase in sales at established stores, its largest such gain since 2001. That compares with earnings of $607 million, or $1.91 per share, a year ago.

Those efforts helped the electronics retailer grow its comparable sales in six of the last eight quarters. Operating income is also expected to be flat.

Kohl's earned $468 million, or $2.81 per share.


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