Best Buy forecast current-quarter sales and profit below analysts' estimates as the biggest U.S. consumer electronics retailer by store count struggles with falling sales of mobile devices.
Best Buy also said it would buy back up to $1 billion in shares over the next two years and it announced a special dividend of 45 cents per share.
The retailer's stock was up slightly Thursday afternoon. (Get the latest quote here.)
Best Buy forecast revenue of $8.25 billion to $8.35 billion and a profit of 31 cents to 35 cents per share for the first quarter. Analysts on average were expecting revenue of $8.45 billion and a profit of 39 cents per share, according to Thomson Reuters I/B/E/S.
Best Buy expects revenue declines in the first half of the year, followed by growth in the second half, Chief Financial Officer Sharon McCollam said. "In this context, we are targeting flat domestic revenue for the full year ... but recognize that it will be challenging without a strong mobile cycle."