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Not much was expected from Best Buy (NYSE: BBY) last quarter. That’s how the company managed to beat earnings estimates despite a 25% year-over-year drop in profits.
Overall, Best Buy earnings were $158 million, or 46 cents per share. That trails the $212 million, or 53 cents per share, the company earned in its first quarter a year ago. Same-store sales dropped 5.3%. U.S. sales jumped 5.1%, but the company struggled overseas, where revenues fell 6.3%.
The mixed earnings resulted in a flat stock for Best Buy this morning.
It’s been a rough few weeks for Best Buy. The company was rocked by a recent sex scandal involving its former CEO Brian Dunn. Allegations that Dunn was having an inappropriate relationship with a female employee led to his ousting last month, replaced on an interim basis by board member Mike Mikan.
Best Buy shares have plummeted 19% since news of the scandal leaked.
But today’s muted earnings expectations – and the company’s weak first-quarter sales – had nothing to do with the scandal. Best Buy has been closing stores lately – 41 of them, to be exact – as the store is getting fierce competition from online retailers such as Amazon (Nasdaq: AMZN).
Amazon reported last month that its revenue increased 34% from a year ago.
Despite pressure from Amazon, Best Buy hasn’t lowered its full-year earnings estimates. The company maintained its projection of non-GAAP earnings per share of between $3.50 and $3.80 in 2012.