Best Buy (BBY) Slimming Down to Fighting Size

Best Buy's (NYSE:BBY) net income in the fourth quarter plummeted 16 percent as higher-cost items didn't sell, such as notebook computers and flat-screen TVs.

In response, Best Buy said they're going to focus on growth categories like smartphones and tablet computers, while also opening smaller and leaner stores as part of their future strategy.

Worries about its ability to deal with tanking TV sales combined with a muted outlook for fiscal 2012 to send Best Buy's stock down $1.69, or 5.3 percent, to $30.16 in late day trading.

Fourth-quarter net income fell to $651 million, or $1.62 per share, from $779 million, or $1.82 per share.

Best Buy has been restructuring its international operations, particularly in China, and cutting costs in its U.S. supply chain. Excluding costs for those moves, net income totaled $1.98 per share. That beat the $1.84 analysts expected, according to FactSet.

Revenue edged down 2 percent to $16.26 billion. U.S. revenue fell 4 percent to $12.1 billion, while international revenue rose 4 percent to $4.1 billion.

Best Buy closed Thursday at $30.13, falling $1.72, or 5.40 percent.




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