Shares of the beleaguered electronics retailer added 2% after hitting a new 52-week low yesterday. Earnings seemed to spell some relief, but then again, analysts don't exactly seem convinced.
In an earnings release earlier today, the company said first-quarter profit fell about 26%, but topped Wall Street expectations. Sales rose 2.1%, beating estimates, but if you factor out an extra selling week, it was a miss, says Piper Jaffray analyst Peter Keith, who kept a neutral rating on the stock.
The company has begun the search for a new CEO. It said Monday that the board's search committee chose Spencer Stuart to spearhead efforts to find its next chief executive.
In the meantime, it will pay interim CEO Mike Mikan a biweekly salary based on annual compensation of $3.3 million -- a mix of $1.1 million in base salary and $2.2 million in the company's short-term incentive plan. He'll also get about $5 million of stock when he steps down as interim chief.
The company's founder, Richard Schulze, also stepped down as chairman after the investigation found that he knew about former CEO Brian Dunn's relationship with a female employee and failed to alert the board's audit committee. Hatim Tyabji, chairman of the board's audit committee, is replacing him.
"While the current shake-up in [Best Buy] senior management could represent a healthy catalyst for long-term change, we continue to stay on the sidelines given the near-term leadership uncertainty and a declining sales trend," writes Keith.
What do you think? Can Best Buy get its house in order while fending off the competition?