Best Buy Co. Inc.

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INTRODUCTION: Best Buy Co., Inc. is an American multinational consumer electronics corporation headquartered in Richfield, Minnesota, a Minneapolis suburb. It operates in United States, Puerto Rico, Mexico, Canada, and China. The company was founded by Richard M. Schulze and Gary Smoliak in 1966 as an audio specialty store; in 1983, it was renamed and rebranded with more emphasis placed on consumer electronics. Best Buy 's subsidiaries include Cinema Now, Geek Squad, Magnolia Audio Video, Pacific Sales, and Cowboom. Best Buy operates under the Best Buy, Best Buy Mobile, Geek Squad, Magnolia Audio Video, and Pacific Sales brands in the US; the Best Buy, Geek Squad, Cell Shop, Connect Pro, and Future Shop brands in Canada; Best Buy Mobile…show more content…
The Best Buy stores have about 50,000 employees. Including subsidiaries, the Best Buy extended enterprise has approximately 80,000 employees. (2) WHAT HAPPENED TO BEST BUY : The bad news for Best Buy is the company reported a $1.7 billion loss in its fiscal fourth quarter 2012 (the quarter ended for Best Buy on March 3rd), compared to net income of $651 million one year ago. Furthermore, the consumer electronics giant announced it has plans to close 50 stores in the US in an effort to improve its business performance. (3) It 's worth noting that a major part of this quarterly loss came from Best Buy 's purchase of Car phone Warehouse 's share of Best Buy Mobile 's profit sharing agreement; there were also restructuring costs due to last fall 's shutdown of Best Buy stores in the UK. Overall, this amounted to $2.6 billion in costs which definitely hurt Best Buy 's bottom line this quarter. Otherwise, revenues of $16.6 billion represented a three percent increase over the year-ago quarter. Full year performance was also down year-over-year — overall, the company posted a loss of $3.36 per share compared to last year 's diluted earnings per share of $3.08. As for the store closure, Best Buy hasn 't announced which stores it will close, nor when those stores will shut down, but this is just part of a major restructuring plan that calls for $800 million in cost reductions by FY 2015. The company plans

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