Published: 8/22/2012

Best Buy withdraws earnings projection

BLADE STAFF

NEW YORK — Best Buy Co. withdrew its full-year earnings guidance Tuesday after reporting a 90 percent drop in second-quarter profit, dragged down by restructuring charges and weak sales.

The company said it had a profit of $12 million, or 4 cents a share, in the quarter ended Aug. 4. That compares with $128 million, or 34 cents a share, in the year-ago period. Revenue fell nearly 3 percent to $10.6 billion.

The poor report comes a day after Best Buy named Hubert Joly, former chief executive officer of Carlson — parent company of Radisson and T.G.I. Friday — as its new CEO and president. It was expected that Best Buy would pick someone with retail experience, and Wall Street sent Best Buy shares down 10 percent. The shares fell 25 cents Thursday, closing at $17.91.

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