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Associated Press, Published August 21 2012

Best Buy second-quarter profit drops 90 percent, misses estimates

NEW YORK — Best Buy Co. is reporting a 90 percent drop in net income during the second quarter, dragged down by restructuring charges and weak sales. The company also withdrew its earnings guidance for the year.

Best Buy says Tuesday that it earned $12 million, or 4 cents per share, in the quarter ended Aug. 4. That compares with $128 million, or 34 cents per share.

Revenue declined nearly 3 percent to $10.55 billion.

Adjusted earnings were 20 cents per share. Analysts had expected 31 cents per share on revenue of $10.65 billion.

Revenue at stores open at least a year fell 3.2 percent.

Best Buy named Hubert Joly, former chief of the Carlson travel company, its new CEO on Monday. Co-founder Richard Schulze is also trying to buy the company.

Copyright 2012 The Associated Press.