Net earnings plunged to $12m (£7.6m) in the second quarter from $150m a year earlier.
Best Buy also said same-store sales fell, its eighth decline in the past nine quarters.
Best Buy, which owns Carphone Warehouse, also suspended share buybacks.
Shares of Best Buy, which is listed in the US, dropped 9% to $16.55 in pre-market trading.
The firm is struggling to compete with online rivals, and blamed lower expectations for sales industry-wide as well as uncertainty about the success of key product launches in the second half of the year for withdrawing its profit forecast.
Sales at stores open at least 14 months fell 3.2% in the three months to 4 August, including a 1.6% drop in the US and an 8.2% fall in international sales.
The firm said on Monday that talks with the firm's founder, Richard Schulze, over taking the company private had broken down.
Best Buy said that Mr Schulze had rejected an offer to conduct due diligence on the deal.
Mr Schulze, who owns just over a fifth of Best Buy, had wanted to buy the rest of the chain for between $24 and $26 a share.
He said he was "shocked" and "disappointed" that discussions over a possible buyout had broken up.
Best Buy has been struggling to compete with online rivals such as Amazon which are able to sell goods at lower prices.
No comments:
Post a Comment