Best Buy Co., the world’s largest consumer-electronics retailer, posted its largest quarterly profit in more than two years after Chief Executive Officer Hubert Joly trimmed costs.
That's the take from Bloomberg News, which notes that the Richfield-based company's shares jumped 13 percent to $34.80 at the close in New York, the biggest gain since April 4 and the highest closing price since Feb. 7, 2011.
Net income in the quarter ended Aug. 3 increased to $266 million, according to Bloomberg.
Best Buy Co. has been shuttering under-performing stores and revamping others to offset tough competition from discounters and online retailers, reports the Associated Press. Under Joly, the company has instituted a price-matching policy, opened more in-store areas for manufacturers such as Apple and Samsung and invested more to train employees.
"In November at our investor meeting, we talked about the two problems we had to solve: declining comparable store sales and declining operating margins," Mr Joly said, in a statement accompanying the earnings, according to the BBC, which also notes that the statement is a surprise given the retailer's sluggish in-store sales and competition online.
“Bears were concerned that lower prices would eat away profit,” Brian Yarbrough, an Edward Jones & Co. analyst in Des Peres, Missouri, tells Bloomberg. He rates Best Buy shares hold. “It’s not happening at the rapid pace that they had thought.”