Best Buy Forecasts Profit Miss, CFO to Step Down
Best Buy forecast current-quarter profit below analysts' estimates, partly due to a disruption in supply of some high-margin products after an earthquake in Japan, and the company said its chief financial officer was stepping down.
The company's shares fell 5.3 percent to $31.24 in premarket trading on Tuesday.
Best Buy said investment in services launched last September would also hurt its profit in the second quarter.
The April earthquake in Japan hurt availability of digital imaging products, the company said.
Best Buy forecast an adjusted profit of 38-42 cents per share for the second quarter. Analysts on average were expecting 50 cents per share, according to Thomson Reuters I/B/E/S.
Best Buy's total comparable sales fell 0.1 percent in the first quarter, excluding the impact of installment billing plans. Analysts on average had expected a decline of 1.2 percent, according to research firm Consensus Metrix.
The net income attributable to shareholders rose 18 percent to $229 million, or 70 cents per share.
Excluding items, the company earned 44 cents per share.
Revenue fell 1.3 percent to $8.44 billion.
Best Buy said Chief Financial Officer Sharon McCollam would step down on June 14.
(Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Kirti Pandey)