Best Buy tops expectations in Q1, online revenue and mobile sales up

By on May 22, 2012 at 10:15 PM.

Best Buy tops expectations in Q1, online revenue and mobile sales up

Best Buy Q1 2012 Earnings

Best Buy on Tuesday reported results for the first quarter of 2012. The electronics retail giant posted better-than-expected earnings per share, despite declining store sales. Revenue came in at $11.6 billion, ahead of analysts’ consensus of $11.52 billion, and non-GAAP earnings came in at $0.72 per share, up 11% from the same quarter in 2011 and beating the Street’s estimates of $0.59 per share. Domestic online revenue rose by 20%, and domestic mobile-phone sales increased by 13%. “Best Buy is in a turnaround, and the strategic priorities we laid out at the beginning of the year are just the first phase of the changes to come,” said Mike Mikan, CEO (interim) of Best Buy. “We know we have to better adapt to the new realities of the marketplace, and we are creating a long-term plan designed to make Best Buy more relevant with customers and position the company for sustained, profitable returns in the years ahead. First quarter results were in-line with our expectations, and we are reaffirming our previously provided annual guidance for fiscal 2013.” Best Buy’s press release follows below.

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New iPad now ships in 3 to 5 days

By on May 2, 2012 at 6:45 PM.

New iPad now ships in 3 to 5 days

New iPad shipping delays improve

Almost two months after Apple unveiled its latest tablet, the new iPad continues to see shipping delays when ordered online. Availability of the device in the U.S. continues to improve, however, with the shipping quotes now whittled down to under a week for the first time since the slate launched in March. Orders through Apple’s online store are now expected to ship in 3 to 5 business days, although international customers will still be forced to wait between 1 and 2 weeks. If the wait is still too long, Best Buy and other retail outlets are said to have plenty of stock. The Cupertino-based company previously said demand for the new tablet was “off the charts.” In the first quarter of 2012, Apple sold 11.8 million tablets. More →

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Canalys: Expect more big-box retailers to tumble

By on April 20, 2012 at 7:40 AM.

Canalys: Expect more big-box retailers to tumble

Following Best Buy’s announcement that it would shutter 50 retail locations as part of an effort to cut costs, one market research firm said it believes the decline of big-box consumer electronics retailers in the United States and Europe will continue. Canalys said in a report on Tuesday that it expects more big-name retailers to follow in the footsteps of companies like Best Buy Europe, CompUSA and Circuit City, which filed for bankruptcy in 2008 before closing all of its retail stores and selling its online brand. Big-box retailers’ failure to adapt as aggressive online companies such as Amazon grew rapidly is seen as the root cause of their woes. “They were hit by a perfect storm of competition from the Internet and supermarkets,” Canalys CEO Steve Brazier said in a statement. “They lost too much business to competitors undercutting them on price and failed to respond to the many attractions of Amazon’s online approach, such as its vast stock ranges, peer reviews, recommendations, free delivery and excellent returns services.” Brazier continued, “Today’s consumers are even willing to browse for a book in a local store then order it from Amazon at a higher price simply because they want Amazon to understand their entire library, to optimize future recommendations. This is more than ‘showrooming’ – this signals a fundamental shift in consumer perception of value.” Canalys’s full press release follows below. More →

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Best Buy CEO Brian Dunn resigns [updated]

By on April 10, 2012 at 9:51 AM.

Best Buy CEO Brian Dunn resigns [updated]

Best Buy on Tuesday announced that its director and chief executive officer Brian Dunn has resigned from the company effective immediately. Director G. Mike Mikan has been named interim CEO as the company searches for a new chief executive. “I have enjoyed every one of my 28 years with this company, and I leave it today in position for a strong future. I am proud of my fellow employees and I wish them the best,” Dunn said in a statement. Best Buy recently announced plans to shutter 50 retail stores as part of an effort to cut costs, and the company missed Wall Street’s revenue consensus when it reported its fourth-quarter earnings last month. Best Buy’s stock is trading up 2.75% on the news. The company’s full press release follows below.

UPDATE: StarTribune reports that an investigation into personal misconduct led to Dunn’s resignation. More →

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Best Buy posts mixed Q4 earnings, plans to close 50 U.S. stores

By on March 29, 2012 at 8:21 AM.

Best Buy posts mixed Q4 earnings, plans to close 50 U.S. stores

Best Buy on Thursday reported results for the fourth fiscal quarter of 2012. The nationwide retail giant had missed Wall Street’s estimates in both the second and third fiscal quarters, and it posted mixed results in the fourth quarter. Revenue came in at $16.6 billion compared to analysts’ consensus of $17.15 billion, and non-GAAP earnings of $2.47 per share, up 25% from the same quarter in fiscal 2011, beating the Street’s $2.15 EPS consensus. “In order to help make technology work for every one of our customers and transform our business as the consumer electronics industry continues to evolve, we are taking major actions to improve our operating performance,” said Best Buy CEO Brian J. Dunn. “As part of our multi-channel strategy, we intend to strengthen our portfolio of store formats and footprints — closing some big box stores, modifying others to our enhanced Connected Store format, and adding Best Buy Mobile stand-alone locations — all to provide a better shopping environment for our customers across multiple channels while increasing points of presence, and to improve performance and profitability.” After jumping more than 3% in pre-market trading, shares of Best Buy stock were down 7% shortly after the market opened on Thursday. The company’s full press release follows below. More →

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iPad launch day: Where are all the sell-outs?

By on March 16, 2012 at 6:30 PM.

iPad launch day: Where are all the sell-outs?

iPad launch day is quite a fiasco. Apple Stores around the country see eager customers line up hours or even days ahead of the tablet’s release, and people often wait hours before they finally make it into the store to purchase an iPad — if there are any left. While there was still plenty of hype surrounding this year’s launch, it didn’t quite seem the same. Apple’s new iPad is a big upgrade compared to the previous model, featuring a faster dual-core A5X processor with quad-core graphics, an upgraded 5-megapixel camera, optional embedded 4G LTE, a slightly redesigned case and a gorgeous better-than-1080p HD Retina Display. But launch day still seemed much more subdued than it was for the release of the original iPad and the iPad 2. Read on for more. More →

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Sprint iPad reportedly appears in Best Buy inventory system

By on March 12, 2012 at 11:30 PM.

Sprint iPad reportedly appears in Best Buy inventory system

At launch, AT&T and Verizon will be the exclusive carriers of the new 4G-enabled iPad in the United States. In the spring, however, Sprint will also be launching its own 4G LTE network. With the carrier already selling Apple’s flagship smartphone, users were shocked to see the Cupertino-based company shun its new partner’s network — but this may not be the case. According to images obtained by Engadget, Sprint iPad models have begun to show up in Best Buy’s inventory system. Nothing is confirmed at this point, but it is possible that a Sprint iPad could launch around the same time as the carrier’s first batch of 4G LTE smartphones. A second image of Best Buy’s system can be seen after the break. More →

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Imminent iPad 3 launch prompts iPad 2 sale at Best Buy

By on February 27, 2012 at 12:40 PM.

Imminent iPad 3 launch prompts iPad 2 sale at Best Buy

Apple is all but confirmed to be planning a press conference for March 7th during which it will unveil its next-generation iPad tablet. The iPad 3 is expected to feature a high-definition 2,048 x 1,536-pixel Retina Display along with a faster quad-core Apple A6 processor, embedded 4G LTE, an upgraded rear camera and a redesigned case. There is no question that the new iPad will be a significant upgrade compared to the current model, but not everyone needs the latest and greatest. For those willing to forgo the added speed, embedded LTE and HD display, Best Buy is now offering $50 off every iPad 2 model it carries. Of course buying the iPad 2 now at a $50 discount is a risky move — a number of reports have suggested that Apple will continue to sell its current tablet at a discount of $100 or more once the next-generation iPad 3 launches next month. More →

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NPD: Apple ends 2011 as No.1 brand, Best Buy top retailer

By on February 13, 2012 at 4:30 PM.

NPD: Apple ends 2011 as No.1 brand, Best Buy top retailer

Consumer technology hardware sales in the United States fell 0.5% percent in 2011, ending the year just shy of $144 billion according to market research firm The NPD Group. Roughly 60% of all sales were from PCs, TVs, tablets, eReaders, mobile phones and video game hardware, NPD said. Computers generated the most revenue with nearly $28 billion or roughly 20% of sales, with tablets and eReaders doubling sales to $15 billion in 2011. For the second year in a row, Apple led all consumer electronics brands and was the only one to increase sales during the holiday quarter, posting a 36% year-over-year increase. The Cupertino-based company accounted for 19% percent of all sales, almost double second-ranked Hewlett-Packard. Best Buy was the top retailer for the second year in a row, followed by Walmart and Apple respectively, with Staples and Amazon tied for fourth place. Online, direct mail and TV shopping channel sales increased 7% and accounted for 24% of all sales, up from 22% in 2010. Read on for NPD’s press release. More →

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Apple may partner with Verizon, AT&T and others for iTV content

By on February 6, 2012 at 3:15 PM.

Apple may partner with Verizon, AT&T and others for iTV content

Apple will launch its own HDTV called the “iTV,” analyst Peter Misek of Jefferies & Company said on Monday. We’ve written dozens of reports on Apple’s alleged upcoming HDTV, and most speculate that the device will run a version of iOS along with the company’s Siri voice engine that will remove the need for a traditional remote control. Misek also said that Apple is in talks to partner with carriers such as Verizon Wireless and AT&T for access to exclusive and non-exclusive content, Bloomberg reported on Monday. Best Buy recently leaked possible details on the iTV and the retailer’s survey suggested the device will have a 42-inch display and a $1,499 price tag. The TV could launch near the middle of this year, although a recent report suggested that the television’s launch might be pushed back due to limited display availability. More →

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Best Buy leaks possible Apple iTV details; 42-inch display, $1,499 price tag

By on February 6, 2012 at 12:29 PM.

Best Buy leaks possible Apple iTV details; 42-inch display, $1,499 price tag

Best Buy has reportedly been testing the waters for a possible “iTV” offering from Apple. According to The Verge, the retail giant has been circulating a customer survey that provides some very specific details about an Apple HDTV to gauge consumer interest. Here are the details:

  • 42-inch 1080 LED display
  • Runs iOS
  • App Store functionality
  • iCloud for access to all your music, TV shows, movies, photos, and videos
  • iPhone and iPad as a remote control with AirPlay to push content from your devices to the TV
  • Built-in FaceTime camera and microphone (we’d imagine Siri, as well)
  • Netflix, YouTube, Flickr support
  • $1,499 price

This list, while detailed, could be easily have been put together by anyone familiar with Apple’s current Apple TV product, though the 42-inch display size and price of $1,499 could be solid indications of what we can expect from Apple. The Cupertino-based company is rumored to be preparing to launch its first HDTV featuring iOS and Siri later this year. More →

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Best Buy reorganizes to focus on connected device sales

By on January 13, 2012 at 7:15 PM.

Best Buy reorganizes to focus on connected device sales

During the Consumer Electronics Show in Las Vegas, Best Buy announced that it will reorganize part of its business to focus on sales of connected devices such as tablets, smartphones and computers. Best Buy has created a new retail “connectivity business group,” Forbes said Friday, that will sell the aforementioned devices in Best Buy Mobile and Best Buy retail stores with 3G and 4G wireless service plans. Forbes explained that the connectivity business group (CBG) is similar to Best Buy Mobile but incorporates more devices and will include 15,000 employees from Best Buy Mobile and another 20,000 from Best Buy retail stores who previously worked to sell tablets and computers. Consumers likely won’t see any form of CBG branding and the changes will mostly affect Best Buy’s training practices for its Best Buy and Best Buy Mobile stores. Both stores will sell the products and Best Buy Mobile will likely begin offering connected laptops and tablets in addition to its current smartphone catalog. More →

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Target confirms that it will have 25 stores with mini Apple stores

By on January 12, 2012 at 3:29 PM.

Target confirms that it will have 25 stores with mini Apple stores

Last week rumors began to circulate that Apple was planning to open itsy bitsy retail stores in as many as 25 Target locations. During a presentation on Thursday, Target confirmed that it will have 25 stores featuring “special displays” of Apple products. Neither company has provided details on the partnership, however it will likely be similar to Apple’s deal with Best Buy, which sells the company’s products from dedicated mini stores within more than 600 Best Buy locations. More →

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