Best Buy Earnings: Final Black Friday As Public Company?
Best Buy (NYSE: BBY) confirmed investors’ biggest fears today, announcing Q3 2013 results that were even worse than expected. Despite some solid managed services businesses like mindSHIFT and White Glove Technologies, Best Buy’s core retail business is tanking and the stage is set for founder Richard Schulze to potentially acquire the company and take it private.
In some ways Best Buy’s predicament isn’t surprising. Before quarterly earnings emerged today, MSPmentor yesterday predicted this will be Best Buy’s final Black Friday as a publicly held company.
In a prepared statement today, Best Buy offered this succinct statement: “Best Buy Confirms Significant Decline in Fiscal Third Quarter 2013 Earnings,” including a $10 million loss for the quarter. Also in a prepared statement, CEO Hubert Joly said:
“In line with trends experienced over the last three years, Best Buy’s third quarter financial performance was clearly unsatisfactory. On November 13, we shared our candid assessment of Best Buy’s situation and unveiled Renew Blue, a set of priorities to begin re-invigorating the company’s performance and rejuvenating Best Buy. The results we are reporting today only strengthen our sense of urgency and purpose.”
Bottom line: Best Buy is running out of time to turn itself around, and promising businesses like mindSHIFT are not yet large enough to substantially lift the company’s bottom line.