Best Buy shares jump on holiday results

Published on NewsOK Modified: January 11, 2013 at 5:08 pm •  Published: January 11, 2013
Advertisement
;

Best Buy said that sales were strongest among cell phones, tablets, electronic readers and appliances, while sales of entertainment, televisions and computer-related items dropped.

Another encouraging sign was that online revenue rose 10 percent for the holiday period, bolstered by better traffic, an increase that shows that the chain is managing to grab its share of online buyers as well.

"While it will be a journey with ups and downs, we are focused on becoming an increasingly effective multi-channel retailer and engaging with the tens of millions of consumers who shop us online and in-store," Joly added.

Revenue at stores open at least a year declined 6.4 percent internationally, stung by softness in China and Canada.

Total revenue for the holiday period fell slightly to $12.8 billion from $12.9 billion.

Best Buy lost CEO Brian Dunn in April, after an investigation showed he had an inappropriate relationship with a female staffer.

That led to the departure of co-founder Richard Schulze, who knew about the relationship but didn't report it properly, the investigation found.

Schulze stepped down, but he has been considering making a bid for the company. That bid had not materialized by the end of 2012, although Best Buy has given Schulze more time to look over its books and arrange financing for an offer.

Best Buy shares rose $2, or 16.4 percent, to close at $14.21 Friday. That's still close to the low end of the stock's 52-week trading range of $11.20 to $27.95. The stock hit its lowest point of the year on Dec. 27, 2012.