Best Buy reports 1Q loss on restructuring costs
MINNEAPOLIS (AP) -- Best Buy Co. on Tuesday reported a loss for its fiscal first quarter as it sold its stake in Best Buy Europe and works on a turnaround plan that includes cutting costs and closing some stores.
Its adjusted earnings beat Wall Street expectations, as cost cuts helped offset tough pricing competition during the quarter. But shares fell 5 percent in midday trading.
The company has been working on a turnaround plan as it faces increased competition from online retailers and discount stores. The plan includes closing stores, cutting costs and investing in training for its employees. In April it also said it would sell its 50 percent stake in its European joint venture to streamline its business and strengthen its balance sheet.
CEO Hubert Joly said the company is working on improving its e-commerce offerings, replacing its search platform with better technology, redesigning parts of its Web site and making other Web site upgrades. The changes are needed because 80 percent of all customers who are planning to buy gadgets worth $100 or more are researching the product online before going into a store, Joly said.
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