Best Buy Reports $1.7 Billion in Losses, Closing 50 Stores
Electronics retailer Best Buy isn’t doing quite as well as it once was, with losses on the order of $1.7 billion for last quarter.
This is particularly alarming, considering the company amassed a whopping $651 million in profits the same time last year. As a result, the chain will be forced to close many of its stores as well as layoff approximately 400 employees, mostly from its corporate HQ.
When looking back over the entire financial year, Best Buy has lost $1.2 billion, an alarming difference when compared to its earnings the year prior which amounted to $1.3 billion in profit. Business Insider attributes the bulk of this loss to the entertainment division, which includes both video games and movies. This particular division dropped a staggering 20% when compared to last year.
The Star Tribune has reported that 50 of Best Buy’s “big box” stores will be closing. Additionally, the company’s stock prices have fallen considerably following this news.