Beleaguered electronics goods chain, Best Buy Co. Inc. (NYSE: BBY) reported fiscal fourth-results that were better-than-expected, as cost cutting measures offset flagging same-store- sales during the key holiday-season quarter.
The Company also said that it has not received any formal buyout bid from the founder and Richard Schulze to take the business private.
Shares rallied 4.57% on Friday to close at $17.16.
For the quarter ended February 2, the Company reported net loss of $409 million or $1.21 a share compared to a loss of $1.82 billion or $5.17 a share, in the year earlier quarter.
After excluding onetime items such as restructuring expenses and other charges, adjusted or non-GAAP earnings came at $1.64 a share, down from $2.16 a share, in the same period of last year.
Revenue during the quarter rose marginally to $16.71 billion from $16.67 billion, in the same quarter of last year.
Analysts polled by Thomson Reuters had a consensus estimate for earnings of $1.54 a share on revenue of $16.34 billion.
In the backdrop of intensifying competition from online retailers like Amazon.com and discount retailers like Wal-Mart Stores, the Company has resorted to cost cutting measures to improve its bottom line. The Company is feeling the pinch because of “showrooming” where consumers often just check products at its stores but eventually end up buying either online or through discount retailers.
Same-store-sales, a key gauge on retailer’s performance as it excludes sales impact from those stores that were closed or opened less than 12 months ago, rose 0.9% in the U.S.; however, in international markets it fell 6.6%.
Overall, same-store-sales declined 0.8%.
The Company did not provide any guidance on the current quarter of fiscal full year.
Best Buy, which was supposed to announce quarterly results on Thursday, delayed it by a day as it extended its deadline until the midnight to enable Schulze to offer his proposal to take the company private.
However, on Friday the Company said it did not receive any proposal before the deadline; hence it will continue to focus on restructuring its business in order to enhance shareholder value.