Best Buy on track for no growth

Best Buy (NYSE:BBY) has joined fellow retailers reporting slow sales, particularly in electronics, as it continues to navigate a turnaround. 

          Hubert Joly

Sales slowed somewhat and same-store sales were roughly flat (down 0.1 percent) and will remain so for most of the year, according to management. This, on top of dissapointing holiday sales for the retailer as it added in-store branded shops and partnered with other retailers including Macy's to bring electronics to noncompetitive outlets.

"Although we are reporting better-than-expected results today, we are not raising our full year outlook as the first quarter represents less than 15 percent of full year earnings and at this stage we have no new material information as it relates to product launches throughout the year," said Best Buy chairman and CEO Hubert Joly.

Joly guided down from previous forecasts of 1 to 2 percent comparable store sales and now expects those to be flat for the year. Slow sales of mobile devices were not offset by growth in fitness trackers and wearables, home theater and appliances.

Online sales grew 24 percent for the quarter.

Additionally, Best Buy said that CFO Sharon McCollam is leaving after the June 14 shareholder meeting as part of a succession plan. Corie Barry, a 16-year veteran of Best Buy and its current chief strategic growth officer, will take on the CFO role. Asheesh Saksena succeeds Barry as chief strategic growth officer, and four existing Best Buy executives will assume various duties previously part of McCollam's role as chief administrative officer.

For more:
- see this and this announcement from Best Buy

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