Boston, MA 08/26/2014 (wallstreetpr) – Best Buy Co Inc (NYSE:BBY) sales declined 4% to come at $8.9 billion in the second quarter result. It was the tenth consecutive fall in the sales. The weak demand for mobile phones attributed for declining sales. Best Buy reported the net income at $146 million comparable to $266 million in the prior-year quarter. The profit came higher at 44 cents as comparable to the profit of 32 cents a year ago.
The financial figures
The management efforts of cost cutting worked in the favor of the company. It saved $40 million in annual costs in the second quarter. Best Buy Co Inc (NYSE:BBY) is looking to enhance its supply and opt for cheaper store leases to get more cost benefits in the coming quarters. It was the prime objective of the CEO Hubert Joly to reduce the expenses since the time he joined the company. His efforts have worked in favor of Best Buy, and the stock has nearly tripled in last one year. Investors are looking ahead to his second round of turnaround plans where the focus will shift back on reviving sales growth.
The problem area
Best Buy Co Inc (NYSE:BBY) is dealing with the poor demand of consumer electronics. There are no innovative products in the market due to which customers are delaying their purchases for a later time. Even Best Buy expects the same-store sales to decline by low single digit in the coming quarters. The trend of declining sales is visible in the entire industry. The same-store sales of Best Buy dropped 2%, and the sales from the consumer electronics segment dropped 2.5%. The same-store sales inclusive of the international stores declined 2.7% in the quarter, higher than the analysts’ estimates of 2.2%. Best Buy Co Inc (NYSE:BBY) has to focus more on the same-store sales as it is a key indicator that measures a retailer’s performance.
