Best Buy surges 13% on earnings
Best Buy's stock rallied Tuesday after the electronics retailer reported a substantial gain in quarterly earnings, helped by aggressive cost cutting.
Best Buy said earnings jumped to $266 million in the quarter ended Aug. 3, compared with $12 million in the year-ago quarter.
The company's stock jumped as much as 12.8% to $34.65. That helped it unseat Netflix as the S&P 500's top performer this year.
Chief Executive Hubert Joly said Best Buy cut $65 million in annualized costs. He said the company has managed to slash $390 million in nine months, as part of an effort to cut $725 million.
Looking ahead, Joly was a little cautious, noting that Best Buy has incurred some additional costs and an interruption in same store sales growth as it rolls out its new Samsung Experience Shops and Microsoft Windows Stores. Same-store sales slipped 0.4% for the quarter, but Joly said they would have been flat to slightly higher if not for the Samsung roll-out.
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