Is Best Buy turning into an electronics showroom for online retailers? That’s what some experts proclaim as the company’s Nov. 20 quarterly earnings report sorely missed expectations. Best Buy reported a third-quarter net loss of $13 million—4 cents per share—compared to 2011 third-quarter results of $173 million in net earnings, or 47 cents per share. Even excluding restructuring changes, the company’s revenue fell from $11.145 billion last year to just $10.75 billion—a 3-cent per-share loss.

“The results we are reporting today only strengthen our sense of urgency and purpose,” said Best Buy CEO Hubert Joly.

According to CNBC, Best Buy critics say the stores’ sales are dwindling because shoppers not visit Best Buy to look at high-priced electronics items such as HDTVs, then buy them cheaper somewhere else, such as online retailer Amazon.com. Best Buy’s earnings report demonstrated strong customer demand at the store for items such as mobile phones, appliances, e-readers and tablet computers, but significantly less for notebook computers, gaming systems and televisions. The company also reported continued decline in same-store sales—the ninth in the past 10 quarters. Stores open at least 14 months saw sales fall an average of 4.3 percent.

[Image via SeanPavonePhoto/Shutterstock]

Samantha Lile

Samantha Lile is a 2002 Missouri State University graduate of journalism and mass media. She has served as a reporter and editor for various newspapers throughout her journalism career. She made the leap into writing full-time after working for a major financial institution since 2000.

Because of her banking background, Samantha is knowledgeable in finance reporting, but is also strong in commentaries, personal profiles, youth studies, horticulture, history and entertainment-related works.

Samantha lives in Ozark, Mo. with her husband of nine years, four dogs and two cats.

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