The news overshadowed the better-than-expected quarterly profit from the world's largest consumer electronics chain in the third quarter and dragged its shares down 6.6 percent.
Under Chief Executive Officer Hubert Joly, who took the retailer's helm last fall, the company has cut costs by removing layers of management, eliminating hundreds of jobs and closing some unprofitable stores. It has also boosted cash by selling its stake in a European joint venture with Carphone Warehouse Group.
Best Buy's net earnings were $54 million, or 16 cents a share, compared with a net loss of $10 million, or 3 cents a share, a year earlier.
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Excluding restructuring charges and other items, it earned 18 cents a share, up from 3 cents a share in the year-earlier period and beating the average analyst estimate of 12 cents, according to Thomson Reuters I/B/E/S.
After the earnings announcement, the company's shares fell in pre-market trading. (Click here for the latest quote.)
Revenue decreased to $9.36 billion from $9.38 billion a year ago.
Analysts had expected the company to report earnings excluding items of 12 cents a share on $9.36 billion in revenue, according to a consensus estimate from Thomson Reuters.
The CNBC information in this article was updated to show Best Buy's revenue decreased to $9.36 billion from $9.38 billion a year ago.
—By Reuters. CNBC contributed to this report.