MINNEAPOLIS-A decline in revenue and restructuring charges combined to slice down Best Buy’s bottom line by 16 percent, to $651 million, in its fiscal fourth quarter ending on Feb. 26.
Revenue in the quarter totaled $16.3 billion, off 1.8 percent from last year’s fourth quarter. The retailer also reported charges of $222 million for the restructuring of its international operations and improving its domestic supply-chain efficiencies. Best Buy said these efforts would eventually produce savings of $60 million to $70 million when fully realized in 2013.
Selling, general and administrative expenses for the quarter rose 1.7 percent in dollars and 60 basis points as a percentage of sales, to 16.9 percent. Gross margin finished at 24.3 percent, up 30 basis points.
For the fiscal year as a whole, Best Buy’s net income fell 3 percent to $1.3 billion. Revenue for the year rose 1.2 percent to $50.3 billion. In calling the fiscal year “a challenge” in terms of demand for consumer electronics, Brian Dunn, Best Buy’s CEO, added that the efforts at improving its international business and enhancing its multichannel capabilities will “build critical capabilities for profitable growth.”