Page 25 - Aruba Today

BUSINESS A25
Friday 15 January 2016

GoPro brand stock tumbles after weak camera sales

JOSEPH PISANI Shares of GoPro plummet- Dec. 31 was about $435 mil- mand, it’s still too early to jobs. The company has
AP Business Writer ed Thursday to their low- lion, far below the $500 mil- know if GoPro’s cameras about 1,500 employees. It
NEW YORK (AP) — GoPro est point since it became lion to $550 million it previ- were just a fad, said Ray- said paying severance to
had a rough holiday sea- a public company nearly ously expected. That would mond James analyst Ta- laid-off workers will cost the
son. The maker of wearable two years ago. mean its revenue dropped vis McCourt. “We will likely company between $5 mil-
cameras, used by moun- GoPro launched the Hero4 31 percent from the same know by the end of 2016 lion and $10 million during
tain climbers, surfers and Session camera in July period a year ago, when it after GoPro enters the con- the first quarter of 2016.
other extreme sports fans, at $400, but eventually posted $633.9 million in rev- sumer drone market and Shares of GoPro Inc. fell
said late Wednesday that slashed the price to $199 by enue. rolls out a new lineup of $2.13, or 14.6 percent, to
sales of its devices were December. The price cut Wall Street analysts expect- Hero 5 cameras,” said Mc- $12.48 Thursday. GoPro’s
weak even as it cut the reduced its fourth-quarter ed the company to report Court in a note to investors. stock has lost about half of
price of its latest camera in revenue by $21 million, the $521.2 million in revenue The San Mateo, California, its value since it made its
half. The San Mateo, Cali- company said. during the fourth quarter, company said that it will debut on the stock market
fornia, company also said it It said revenue during the according to FactSet. cut about 7 percent of its in February 2014 at $24 per
will cut about 100 jobs. three months that ended Despite the weakened de- workforce, or about 100 share.q

Best Buy reports weak holiday shopping results, outlook

This photo displays a Best Buy sign on a store in Miami, Fla. Best Buy’s shares sank Thursday, Jan. phones fell 7.2 percent, but panding universe,” Joly
14, 2016, after the nation’s largest consumer electronics chain reduced its sales outlook for the appliances rose 13.4 per- said. But he noted Best
fourth-quarter as it reported weak holiday business in mobile phone and personal devices. cent and consumer elec- Buy doesn’t want to just
tronics rose 4.3 percent. selltechnology products
(AP Photo/J Pat Carter) Best Buy’s domestic rev- but rather solve a need.
enue declined 0.8 percent, Under Joly, who took the
A. D’INNOCENZIO though the company im- ended Jan. 2 compared but the company said that helm in 2012, Best Buy has
AP Retail Writer proved its outlook for op- with growth of 3.4 percent was better than the broad- been cutting costs, re-
NEW YORK (AP) — Best erating income. Best Buy during the same period a er consumer electronics in- vamping stores and boost-
Buy’s shares sank Thursday shares tumbled almost 12 year prior. Online revenue dustry, which experienced ing training for its sales
after the nation’s larg- percent in morning trading. rose 12.6 percent, com- deeper declines. help as it fights off com-
est consumer electronics The disappointing results pared with growth of 13.4 During an conference call petition from online leader
chain reduced its sales out- underscore the challenges percent a year ago. Look- with the media Thursday, Amazon and big discount-
look for the fourth-quarter for Best Buy as it tries to re- ing ahead, the company Hubert Joly, Best Buy’s ers like Wal-Mart. It’s also
as it reported weak holiday energize sales growth that expects a 1.5 percent de- chairman and CEO , said been rolling out services
business in mobile phones has been inconsistent. cline for its domestic busi- that he had expected that like shipping goods from
and personal devices. Best Buy said that domes- ness, compared with its sales of mobile devices all its stores, which means
The Minneapolis-based tic same-store-sales, a key previous expectations for a would be weak as fewer speedier deliveries. Mean-
company said it now ex- measure of a retailer’s nearly flat performance. customers upgraded their while, Best Buy has been
pects a larger drop in health, fell 1.2 percent During the nine-week peri- devices because of a lack improving the shopping
fourth-quarter revenue, in the nine-week period od, computing and mobile of new technology. But experience at the stores.
he said sales were softer It’s also been working with
than expected and the big suppliers like Samsung
declines more than offset to develop home theaters.
sales growth in home the- It has also been catering to
ater, major appliances and shoppers’ increasing inter-
wearable tech items like est in “smart home” tech-
smart watches. Excluding nology— the ability to turn
mobile phones, domestic down the heater remotely,
revenue increased year for example.
over year. This holiday season, the
Joly said technology inno- chain dropped all restric-
vations are expanding into tions for free shipping. The
other categories like cloth- company typically requires
ing, and he expects Best customers to spend at least
Buy to embrace that. $35 in order to receipt free
“You almost have an ex- shipping.q

Southern Comfort brand sold to Sazerac in $543.5M deal

BRUCE SCHREINER premium liqueur brand. come gain of about $475 and Tuaca, he said: “Both keting campaigns in recent
Associated Press Sazerac President/CEO million for the company in brands played important years to try to reinvigorate
Southern Comfort’s parent Mark Brown said the fam- fiscal 2016, it said. roles in the Brown-Forman the brand.
company said Thursday ily-owned, privately held Brown-Forman CEO Paul success story, and we will Brown-Forman said last
that it is selling the iconic company was excited to Varga said the sale reflect- have fond memories of the month that net sales for the
brand to a rival liquor com- acquire the two brands ed the Louisville, Kentucky- enjoyment they brought Southern Comfort brand
pany as part of a $543.5 and looks forward to “years based company’s evolving to consumers, our partners had dropped by 7 per-
million deal. of successful brand build- portfolio strategy and its fo- and to Brown-Forman.” cent in the first half of the
Brown-Forman Corp. said ing.” cus on top-priority brands. Brown-Forman acquired company’s fiscal year. The
its Southern Comfort and The sale is expected to Brown-Forman’s dominant Southern Comfort in 1979, company pointed to weak
Tuaca brands will be sold to close by March 1, Brown- brand is Jack Daniel’s Ten- but the brand has strug- sales at bars and restau-
Louisiana-based Sazerac. Forman said. It will result in nessee Whiskey. gled in recent years. The rants and competition from
Tuaca is a relatively small a one-time operating in- As for Southern Comfort company launched mar- new flavored whiskies.q