Investing.com -- Shares in Best Buy Co Inc (NYSE:BBY) tumbled more than 7% on Tuesday, after the Minneapolis-based multinational consumer electronics company lowered its forward outlook for its current quarter and announced that its chief financial officer will resign later next month.
During the first quarter of Fiscal Year 2016, Best Buy reported net profits of $229 million or 0.70 per share, up considerably from earnings of $129 million or 0.36 over the same period a year earlier. While revenues fell 1.3% to $8.44 billion, comparable store sales only slid 0.1%, aided by an improving home market, which has strengthened demand for large appliances. Analysts expected to see a decline of 1.6% in same store sales, while Best Buy forecasted losses anywhere between 1 and 2%.
“Our teams delivered a strong first quarter, with better-than-expected revenue, improved profitability and progress against our fiscal 2017 initiatives,” said Best Buy Chairman and CEO Hubert Joly. “In our Domestic business, we are reporting essentially flat comparable sales versus guidance of a 1% to 2% decline driven by strong year-over-year sales growth in health & wearables, home theater and appliances offset by continued softness in mobile phones and tablets. Contributing to these better-than-expected results was the strong performance in our online channel, which grew 24% in the quarter.”
Separately, Best Buy CFO Sharon McCollam announced that she will be stepping down from her position on June 14 during the company's annual shareholders' meeting. McCollam, who will remain with Best Buy in an advisory capacity until next January, will be replaced by Chief Strategic Growth Officer Corrie Barrie, a 16-year veteran of the company.
“In every person’s career, there are moments when their heart is filled with emotion. Today is one of those moments for me. I cannot express deeply enough what an immense privilege it has been to be a part of this remarkable company and exciting transformation," McCollam said in a statement. "With our team of more than 125,000 people, we have worked hand-in-hand to Renew Blue, and today, Best Buy is stronger than ever."
Shares in Best Buy fell 2.47 or 7.45% to 30.54.