While the markets listed slightly into the red Thursday, Best Buy (NYSE:BBY) was headed downward full-throttle.
BBY shares dropped 7% on Thursday after the company announced a massive fourth-quarter loss and the impending closure of 50 of its big-box stores.
Best Buy lost $1.7 billion ($4.89 per share) in Q4 2011, down from $651 million in profits ($1.62) per share in the year-ago period. While adjusted earnings came out to a profit of $2.47 per share and beat expectations by 31 cents, revenues of $16.6 billion fell short of estimates for $17.2 billion.
The company also said it would shutter 50 of its big-box stores, though it has plans to renovate existing stores and open 100 smaller locations. Also in the report was a note saying the company would make “reductions to fund investments in enhanced customer experience and growth initiatives” — a not-so-good signal for the stores’ current customer service.
A number of Chinese stocks also were headed lower Thursday, as investors continue to fear a slowdown in the emerging market’s economy. Online stock Youku (NASDAQ:YOKU) was down 3.5%, as was the company it’s buying out, Tudou (NASDAQ:TUDO, -2.2%). Even PetroChina (NYSE:PTR) was down less than a percent on an otherwise celebratory day, in which the company announced it had surpassed energy titan Exxon Mobil (NYSE:XOM) in crude oil production.
- Red Hat (NYSE:RHT): Up 19.5% ($10.04) to $61.43.
- Molycorp (NYSE:MCP): Up 9.4% ($2.97) to $34.50.
- Aetna (NYSE:AET): Up 6.5% ($3.04) to $49.56.
- Mosaic (NYSE:MOS): Down 5.1% ($2.95) to $55.27.
- Cabot Oil & Gas (NYSE:COG): Down 4.8% ($1.54) to $30.25.
- Melco Crown Entertainment (NASDAQ:MPEL): Down 4.8% (67 cents) to $13.28.