Best Buy Income Drops 91 Percent in Second Quarter of 2012

The company attributes at least some of that charge to restructuring costs.

Best Buy has been in the news quite a bit recently thanks to the attempts of the founder to buy the company back. The latest from the company looks quite dire – a 91% drop of income in the second quarter of this year. Rather than the 128 million during the second quarter of last year, they only brought in 12 million.

Another reason for the lagging income is, of course, a drop in sales. Mobile phones and notebooks grew nicely, mid-sized TVs had a slight increase and everything else sold less than the previous year. Sales in China were also down overall thanks to a slowing economy.

“Consumers remain very cautious,” says Best Buy’s interim CEO Mike Mikan, “and sales in the industry may be dampened at the moment by those who are holding back on spending as they await some highly anticipated new technology releases.”

Source: Home Media Magazine