Investors boo Best Buy, cheer La-Z-Boy
Same-store sales drop at Best Buy, and investors slam the shares. La-Z-Boy's profit rebounds.
Updated 7:40 p.m. ET
The company said today that its first-quarter profit fell to $153 million, or 36 cents per share, down from $179 million, or 43 cents per share, in the same quarter last year.
Excluding charges, Best Buy posted earnings of 42 cents per share -- 8 cents higher than Street expectations.
That wasn't good enough for investors, who looked at declining same-store sales as a problem. Shares fell 7.3% to $35.84.
Revenue managed to rise 12% to $10.1 billion, but that was due to opening 185 new stores over the past year.
Sales at stores open at least 14 months were down 6.2%. Sanford C. Bernstein analyst Colin McGranahan told Bloomberg News that he'd expected a decline of 2.3%.
Consumers spent less on digital cameras and appliances during the biggest U.S. economic slump since the Great Depression.
Best Buy may not have benefited as much as investors hoped from the departure of Circuit City Stores, which closed its remaining 567 U.S. stores in March, McGranahan said.
Best Buy reaffirmed its full-year guidance of $2.50 to $2.90 per share.
"Domestic growth margin was up. We believe they're getting strong market share gains," Mitchell Kaiser, analyst at Piper Jaffray, told CNBC. "They're doing a better job managing inventory."
But the downside is that consumers just aren't spending, Kaiser said.
In May, Wal-Mart announced plans to revamp the electronics departments in more than 3,500 U.S. stores.
La-Z-Boy shares jumped 19.5% to $4.35.
La-Z-Boy earned $5.3 million, or 10 cents a share in the quarter, up from a loss of $4.4 million, or 9 cents a share, a year ago.
Excluding charges, the company said it would have earned 7 cents a share in the quarter. Analysts were looking for a loss of 11 cents.
Sales fell 23% to $284.5 million, missing Wall Street's estimate of $297.4 million.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] Equity indices closed out the month of August on a modestly higher note. The Russell 2000 (+0.6%) and Nasdaq Composite (+0.5%) finished ahead of the S&P 500 (+0.3%), which extended its August gain to 3.8%. Blue chips lagged with the Dow Jones Industrial Average (+0.1%) spending the bulk of the session in the red.
The final week of August represented one of the quietest stretches for the stock market so far this year. The first four sessions of the week produced the ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
VIDEO ON MSN MONEY
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'