Best Buy Co. (NYSE: BBY), the big electronics retailer, is not having a good week.
The Richfield, Minn.-based electronics retail giant saw its share price hammered down nearly 10 percent on Monday after Wall St. reacted cooly to its naming Hubert Joly as its new CEO.
Then Best Buy was hit with another near-10-percent slap down in pre-market Tuesday after the company announced it was cutting its fiscal-year outlook and suspending its share-buyback program. Stores open at least 14 months saw their sales decline 3.2 percent in the company's second quarter ended Aug. 4. The company also reported a decline in same-store sales, which has been down eight out of the past nine quarters.
Shares looked likely to open around $16.40, down $1.76. The previous 52-week low was $16.97, A share of Best Buy was trading at a year-to-date high of $27.51 in March.
Net earnings fell to $12 million, or 4 cents a share, in the quarter from $150 million, or 39 cents a share, a year earlier. Excluding items, Best Buy earned 20 cents a share. Analysts polled by Thomson Reuters had expected the company to report earnings excluding items of 31 cents a share.
The news will surely affect negotiations as founding CEO and 20-percent shareholder Richard Schulze tries to gather up capital to take the company private. He's offered between $24 and $26 per share, or about 32 percent more than Tuesday's share price.