RECOVERY: Best Buy To Cut Jobs And Shutter Stores

OK, I’ve got to admit I was wrong.  It really does appear that we’re in a surprise election year economic recovery.

Everyone knows that the tell tales signs of economic recovery are stagnant home prices, sluggish job growth, family budgets decimated by inflation and the “world’s largest consumer electronics chain” forced to close down locations and throw people out of work.

Economic reality is racist.

Despite offering bigger discounts and free shipping to lure shoppers from its rivals including Wal-Mart Stores Inc and Amazon.com Inc, Best Buy’s same-store sales fell 2.4 percent in the quarter, including a 2.2 percent decline at its U.S. stores open at least 14 months.

Wedbush analyst Michael Pachter was looking for a 1.8 percent same-store sales decline in the quarter, including a 1.4 percent decline at its domestic stores.

Its sales rose to $16.63 billion, but fell far short of the analysts’ average estimate of $17.23 billion, according to Thomson Reuters I/B/E/S.

[…]

Best Buy lost $1.7 billion, or $4.89 a share, in the fourth quarter that ended March 3, compared with net income of $651 million, or $1.62 a share, a year earlier.

Excluding charges, it earned $2.47 a share. Analysts were looking for a profit of $2.16 a share on that basis, according to Thomson Reuters I/B/E/S.