Market Overview

Best Buy 2Q Disappoints, Buybacks Suspended

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Originally published on Fox Business

Citing weakness in China and Europe, Best Buy (BBY: 17.30, -0.86, -4.74%) posted a sharp decline in second-quarter earnings and sales, leading the ailing retailer to suspend its fiscal 2013 earnings guidance and buyback plans.

Shares of Best Buy fell nearly 10% to $16.30, a new 52-week low.

The consumer electronics giant, which hired French businessman Hubert Joly on Monday as CEO, said net earnings fell to $12 million, or 4 cents a share, compared with a year-earlier $150 million, or 39 cents.

Excluding one-time items, Best Buy earned 20 cents, below average analyst estimates of 31 cents in a Thomson Reuters poll. The company said it would suspend its share repurchases for fiscal 2013 as it transitions Joly into his position as CEO. Joly will replace Mike Mikan, who was serving as interim CEO following the departure of Brian Dunn, who abruptly resigned earlier this year amid allegations that he had an affair with a female subordinate.

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The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

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