Best Buy swings to 1Q loss on turnaround costs

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Best Buy Co. posted a first-quarter net loss of $81 million, compared to a net profit of $158 million a year earlier, the Associated Press reports.

"As expected, first quarter Domestic comparable store sales were down 1.1%. This was the result of the Super Bowl shifting into last year's fourth quarter as well as our decision to reduce sales in certain non-core businesses," President and CEO Hubert Joly said in a news release. "During the second quarter, we will, in particular, complete the deployment of the Samsung Experience Shops and make significant progress in our efforts to optimize the allocation of our retail floor space to more attractive product categories, so as to increase revenue and operating profit per square foot."

The Richfield-based consumer electronics chain is also working on a turnaround plan that includes closing stores, cutting costs and investing in employee training.

Last month, Best Buy struck a deal to sell its 50 percent stake in its European joint venture.

Reuters notes Best Buy's net earnings from continuing operations fell to $97 million, from $169 million a year ago.

Revenue for the three-month period that ended May 4 fell 9.6 percent to $9.4 billion, according to CNNMoney.

Click here, to follow Best Buy's stock performance.

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