MINNEAPOLIS (KMSP) -
Best Buy reported another loss in the third quarter on Tuesday amid slumping sales and restructuring under new CEO Hubert Joly.
Best Buy shares fell more than 9 percent in pre-market trading, opening at $12.82. Shares fell as low as $11.81 -- their lowest mark since December of 2000.
Tuesday's tumble puts Best Buy stock at less than one-quarter of its $55 per share value at Thanksgiving of 2006.
"In-line with trends experienced over the last three years, Best Buy's third quarter financial performance was clearly unsatisfactory," Joly said.
At an analyst meeting last week, Joly outlined his plan to improve sales through better customer service and retooled stores, while cutting overhead and supply-chain costs.
"The results we are reporting today only strengthen our sense of urgency and purpose," Joly added.
Best Buy reported a loss of $10 million, or three cents per share, for the three months ended Nov. 3. That compares with net income of $156 million, or 42 cents per share in the prior year period. Excluding one-time items, net income totaled 3 cents per share. Analysts expected net income of 13 cents per share. Revenue fell 4 percent to $10.75 billion from $11.15 billion but still matched analysts' expectations.
Revenue in stores open at least one year -- an important gauge of a retailer's financial health -- continued to fall, down 4.3 percent for the quarter. Growth in mobile phones, appliances and tablets and e-readers was offset by poor sales in notebook computers, video games, digital cameras and TVs.
On Monday, Best Buy began to invite customers to try out their new online marketplace for early access to Black Friday deals -- but the struggling electronics giant had difficulty right out of the gate.
Members of the Premier Silver deals were granted access to the Reward Zone sale at 10 a.m., but users immediately began reporting slow service. A representative for Best Buy confirmed that the issue involved a problem the check-out channels, which required a manual set-up in the start of the day; however, the spokesperson told FOX 9 News the site never crashed and the issue was resolved in about an hour.
The problems are conjuring concern that a repeat of last year's Black Friday debacle could be on the horizon. In 2011, customers who had placed orders weeks in advance were told delivery would be delayed until after the holidays just a couple of days before Christmas. Some shoppers even complained their orders were canceled abruptly without explanation.
The Associated Press contributed to this report
