Best Buy CEO Sells 44% of his Shares
Shares Tumble 5% Amidst Market Uncertainty
CBJ — Best Buy shares fell as much as 5% on Monday after CEO Hubert Joly cut his stake in the electronics retailer by about 44%, two weeks after the company gave a disappointing current-quarter profit forecast.
Joly sold 398,000 shares worth about US$12.8 million, leaving him with a 0.16% stake in the company.
Best Buy spokesman Jeffrey Shelman said on Monday that Joly’s sale was “solely related to his desire to diversify his overall personal holdings” and that he had no plans to step down.
The electronics retailer said last month that second-quarter profit would be hurt by supply disruptions for some high-margin products after an earthquake in Japan and due to investments in customer service.
The company has been struggling to boost sales as demand for smartphones and PCs continue to fall.