said it plans to restructure its branded operations in China and Turkey and focus new store openings in fiscal 2012 on its mobile business in the U.S. and its Five Star business in China.
Best Buy, in a press release, said it will record charges of $225 million to $245 million during fiscal 2011 and 2012 from the restructuring. It expects to realize annual pretax savings of $60 million to $70 million by fiscal 2013 from the moves.
The electronics retailer said it continues to expect fiscal 2011 earnings of $3.20 to $3.40 a share, excluding the restructuring charges.
"We're pleased to continue our investments in the Best Buy Mobile and Five Star business models, which are profitable and have significant growth opportunities," said Brian Dunn, Best Buy's CEO, in a statement. "The actions we are taking are consistent with our strategy of driving businesses that have earned the right to additional capital while curtailing activities that we believe will not meet our return on investment thresholds."
The company said it plans to open about 150 Best Buy Mobile standalone stores in the U.S. in fiscal 2012. The retailer plans to open about six to eight large-format stores in the U.S., resulting in square footage growth of less than 1%, a "significant reduction" when compared to the average square footage growth rate of 5% during the last three years, Best Buy said.
Best Buy plans to open about 18 branded large-format stores in Canada, the U.K. and Mexico during fiscal 2012.
In China, Best Buy plans to open 40 to 50 Five Star stores fiscal 2012, taking the total number of Five Star stores to about 210 at the end of fiscal 2012.
Best Buy also said it plans to "exit the Turkey test market" and close its nine the Best Buy-branded test stores in China.
Best Buy said it expects to record the majority of the charges -- about 33 cents to 36 cents a share -- in the fourth quarter of fiscal 2011.
-- Written by Joseph Woelfel
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