Updated from 10:17 a.m. EST to provide analyst comments regarding CEO departure and poll results in the fifth and sixth paragraphs.
Both Dunn and the Minneapolis-based electronics retailer said in the press release that Best Buy needed new leadership "to address the challenges that face the company." Director G. Mike Mikan has been named interim CEO to lead the company while it searches for a new CEO.
"I have enjoyed every one of my 28 years with this company, and I leave it today in position for a strong future. I am proud of my fellow employees and I wish them the best," Dunn said, in the press release.The company has come under pressure in recent years as rival Amazon (AMZN) has taken market share. Best Buy recently posted fourth-quarter results that missed Wall Street's revenue forecast. It also announced the closure of 50 of its U.S. stores in fiscal 2013 as part of a plan to cut $800 million in costs by fiscal 2015. In late 2011, 34.8% TheStreet readers said that Dunn should be fired. Dunn had been unable to revitalize the company, despite its biggest rival, Circuit City, filing bankruptcy. Raymond James analyst Dan Wewer said he was not surprised by the move, but rather the timing of it. He thought Best Buy's founder and chairman, Dick Schulze, was firmly behind Dunn, and had continued to show his support for Dunn, as indicated by a recent report. "It remains our opinion that Best Buy has moved too slowly to address issues such as growing competition from e-commerce retailers (i.e., Amazon) and subpar execution in its retail stores. It is our experience that changes at mega retailers tend to take place at the speed of a glacier," Wewer wrote in his research report. He rates Best Buy "market perform." Shares of Best Buy were down sharply in Tuesday trading, off 4.4% to $21.65. Interested in more on Best Buy? See TheStreet Ratings' report card for this stock. Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices. -- Written by Chris Ciaccia in New York >To follow the writer on Twitter, go to http://twitter.com/commodity_bull. >To submit a news tip, send an email to: email@example.com
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV