Best Buy earnings drop 77 percent, offering buyouts

vbimport

#1

Although Black Friday sales were better than expected, Best Buy’s third-quarter earnings brought another heaping of bad news for the embattled electronics retail industry.

Link: http://news.cnet.com/8300-1001_3-92.html

:cool::cool:


#2

So … they still make a profit … and they’re considering layoffs.

I love capitalism …
Corporations would prefer to make a bad situation worse by firing 1/2 their employees than slash investors returns.

In the current economic climate, maybe they should lower their return expectations :iagree: or better yet … no dividends this year … and maintain the company’s growth for a decent return next year :slight_smile:


#3

[QUOTE=debro;2178717]So … they still make a profit … and they’re considering layoffs. I love capitalism … Corporations would prefer to make a bad situation worse by firing 1/2 their employees than slash investors returns.[/QUOTE]

It is better than not cutting expenses and going into irrecoverable bankruptcy. If they are not selling as much product and there is no improvement in sight then not cutting expenses, employees etc. would be an act of lunacy. Getting a government bailout isn’t in the cards for them so they are acting responsibly, IMO. At least they know they have to be profitable in order to survive. Is cutting dividends to an elderly person on a fixed income more acceptable than laying off a teenager?


#4

They are making profit - they just aren’t making enough profit to keep their investors satisfied. Therefore the company is NOT going in insolvency or bankruptcy.

If you insist.

[QUOTE=UTR;2178777]Is cutting dividends to an elderly person on a fixed income more acceptable than laying off a teenager?[/QUOTE]
Spare the Sob story.
I don’t know any Mature-Aged people that have unprofitable shares and are living under the poverty line. I’d suggest these are already the least affected people in the crisis, as they are financially comfortable, have a few stocks … and are not solely relying on these dividends for their living and generally have minimal exposure to the financial crisis. They can spare the cash. The ivory back-scratcher, and other bonus’s the dividends provide, will have to wait until next christmas.
*Now, the filthy rich are absolutely devastated, because they do rely on dividends for their living.

Compare that to a bunch of younglings with no shares, a crappy day job working at a computer shop, that are living from day to day barely able to cover their utility, rent & food bills, and now being fired.

Sometimes I just don’t think people get it.


#5

[QUOTE=debro;2178814]They are making profit - they just aren’t making enough profit to keep their investors satisfied. Therefore the company is NOT going in insolvency or bankruptcy.

If you insist.

Spare the Sob story.
I don’t know any Mature-Aged people that have unprofitable shares and are living under the poverty line. I’d suggest these are already the least affected people in the crisis, as they are financially comfortable, have a few stocks … and are not solely relying on these dividends for their living and generally have minimal exposure to the financial crisis. They can spare the cash. The ivory back-scratcher, and other bonus’s the dividends provide, will have to wait until next christmas.
*Now, the filthy rich are absolutely devastated, because they do rely on dividends for their living.

Compare that to a bunch of younglings with no shares, a crappy day job working at a computer shop, that are living from day to day barely able to cover their utility, rent & food bills, and now being fired.

Sometimes I just don’t think people get it.[/QUOTE]

Those younglings probably live at home and have no rent, utility bills or food costs. Maybe BestBuy should target those people first. If we are going to redistribute income then lets find the employees that have rich parents and give them the axe first and then work our way up to the employees who are single mothers and orphans. They are probably the last ones that should be laid off. Maybe we need to appoint a “BestBuy Tsar” to keep things fair and define exactly what rich constitutes.


#6

Its newegg for me I have not bought anything from best buy in years and do not plan to.


#7

The last thing I bought from BestBuy in the past several years was four 50 packs of TDK DVD+R media because they was on sale for $4.99 each. I too use Newegg almost exclusively for electronics purchases.


#8

Yes I even sent the chairman of walmart an email and told him that even at his store the prices were not as good as I can get from places like newegg and I do not have to pay taxes.


#9

Plus, Newegg has free shipping on many items. The only time I find good deals at places like Best Buy is when they are trying to dump inventory. Micro Center isn’t too bad for finding the odd deal though.


#10

[QUOTE=UTR;2179410]Those younglings probably live at home and have no rent, utility bills or food costs. Maybe BestBuy should target those people first. If we are going to redistribute income then lets find the employees that have rich parents and give them the axe first and then work our way up to the employees who are single mothers and orphans. They are probably the last ones that should be laid off. Maybe we need to appoint a “BestBuy Tsar” to keep things fair and define exactly what rich constitutes.[/QUOTE]

Okay, so we take the up and coming generation of the workforce and lay them off? That makes no sense whatsoever. While I agree that this might alleviate the problem here and now it does nothing for them when it comes to them trying to reach the point where they either go to work full time after high-school or are seeking a way to get through college. It’s no secret that job experience is what counts most these days in terms of getting a job. The bottom line is that the “younglings” as you term them in many cases are only a year or two from being in a position where they will be taking care of themselves and starting their careers or seeking to provide a way for them to pay for higher education. So how on earth are they going to do either if they go and apply for a job with little or no job experience. Regardless of reason being laid off DOES NOTHING to help your resume. I also don’t think you realize just how tough it is to get any kind of job right now. NO ONE IS HIRING!!!


#11

[QUOTE=Jesterrace;2179950]Okay, so we take the up and coming generation of the workforce and lay them off? That makes no sense whatsoever. While I agree that this might alleviate the problem here and now it does nothing for them when it comes to them trying to reach the point where they either go to work full time after high-school or are seeking a way to get through college. It’s no secret that job experience is what counts most these days in terms of getting a job. The bottom line is that the “younglings” as you term them in many cases are only a year or two from being in a position where they will be taking care of themselves and starting their careers or seeking to provide a way for them to pay for higher education. So how on earth are they going to do either if they go and apply for a job with little or no job experience. Regardless of reason being laid off DOES NOTHING to help your resume. I also don’t think you realize just how tough it is to get any kind of job right now. NO ONE IS HIRING!!![/QUOTE]

I guess I am having trouble getting the sarcasm through in my posts. I think Best Buy needs to do whatever is needed to keep themselves a viable company. If that means laying off workers instead of cutting dividends then that is their choice to make. I work in the housing industry in the USA. Believe me, I know how tough it is to get a job. My industry has been deep in the crapper for the past three years. I saw this economic meltdown coming a long way back and I was perplexed that the government (and I mean Democrats AND Republicans) sat around with a thumb up their collective a$$es and did NOTHING to prevent it. The housing industry in the USA can’t tank as hard as it has the past three years and not eventually drag down the rest of the economy (here and abroad) with it. A house is the biggest investment most people ever make and for the government to let the value of that investment reduce by up to 50% before taking action to prevent it is insanity. The governments regulations regarding lending is what created this entire meltdown. The rest of the world is just now coming to the same level of economic pain that I have been living with for several years. You all have my deepest sympathy on what lies ahead for you. People in my industry have already felt the level pain you all are getting ready to feel and it isn’t something I wish on anyone.


#12

deep in the crapper UTR a lot of jobs have been there for the past few years.


#13

Unemployment has been low in the USA until recently. In my industry it has been bad for several years. It can’t get any worse in the housing industry. We hit bottom, bounced a couple of times, and are now resting there. IMO, the rest of the economy hasn’t hit bottom yet. How low it falls and how hard it hits depends on what Obama does the next year or two.


#14

i live in a part of the country that is made up with almost all old people who have set money each month. The past downturns did not hurt here because when other areas were hurting it just meant that more people were retiring and moving here. My son-in-law has his on Masonry company and he would do just fine because more houses were being built for the people moving here from places that were hurting. This time people cannot retire early because there retirement took a big hit and getting money to build houses is harder to get also. It did not hurt until the last six months here when the retirement money got hit along with not being able to get loans.


#15

There are more waves to hit the housing industry in the next couple of decades. One that will be bad, IMO, is when the Baby Boomers start selling their homes because they are dying off, going to assisted living centers or nursing homes. I predict their will be a glut of homes on the market for a long time once this starts in quantity. It might take decades before home values see the peaks they reached in this decade. The only thing that will prevent it is enough population growth but most advanced countries are experiencing negative native population growth nowadays. The USA would have stagnant or negative growth if it weren’t for immigration, both legal and illegal.