Dan: I'm surprised that you are deviating from a technique that appears to work well for you. I hope the following is helpful.
MINNEAPOLIS, Dec 18 (Reuter) - Best Buy Co Inc said
Wednesday it incurred a third quarter loss and, as a result, is
not in compliance with requirements of its bank credit
agreement.
Best Buy said it is in discussions with the bank group and
expects a satisfactory resolution. Borrowings under the credit
agreement were $271.5 million at quarter's end.
Best Buy reported a loss for its fiscal third quarter ended
November 30 of about $11 million or $0.25 a share after a
pre-tax charge of $15 million or $0.21 a share for the
write-down of personal computer inventories.
The inventory write-down was mainly due to current pricing
conditions rather than excess levels of inventory, it said.
Merchandise inventories totaled $1.85 billion at November
30, 1996, compared to $1.97 billion at the end of the third
quarter last year.
Best Buy said the reduction in inventory levels, despite
the addition of 21 new stores this year, was almost entirely
due to reduced buying and tighter control of personal computers
in anticipation of an upcoming model transition.
In the prior year, new computer models were introduced in
February compared to six weeks earlier this year. The timing of
this transition has caused computer prices to decline during
the busiest months of the year, the retailer said.
Best Buy is a large specialty retailer of consumer
electronics, personal computers and home office products,
entertainment software and appliances. |
