Best Buy profit falls, adj. earns tops Street view - 13 WTHR Indianapolis

Best Buy profit falls, adj. earns tops Street view

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NEW YORK -

Best Buy Co. says its fiscal first-quarter profit dropped 26 percent on restructuring charges as the struggling electronics retailer began implementing a turnaround plan.

However, its adjusted earnings and revenue both topped Wall Street's expectations. That was sorely needed good news for the electronics chain as it attempts a restructuring to update its increasingly outmoded "big-box" store model. At the same time, the company is seeking a new CEO after the former top executive left amid a scandal. Still, the results show the chain has a long way to go toward sustainable improvements.

Best Buy said U.S. sales growth in tablets, mobile phones, e-readers and appliances helped offset declines notebooks, gaming, digital imaging and TVs during the quarter. But revenue in stores open at least 14 months, which excludes the impact of stores that open and close during that period, fell 5.3 percent during the quarter. They were dragged down by weakness in Europe and China.

(Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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