Best Buy Shares Decline After CEO Joly Reduces Stake by 44%by
Best Buy Co. shares declined after Chief Executive Officer Hubert Joly sold $12.8 million in stock, cutting his equity stake in the electronics retailer by 44 percent.
Joly, who joined Best Buy in 2012, sold 398,000 shares for an average price of $32.24, according to a regulatory filing. That left him with about 511,000 shares as of June 2. His total holdings in the company, including options, unvested shares and stock, are valued at about $40 million.
The news rattled investors, who are looking to the 56-year-old Joly to complete a turnaround of the retail chain. While the CEO has been lauded for cutting costs and selling off foreign divisions, the company has yet to return to steady sales growth. Revenue is expected to be flat this year.
Best Buy said on Monday that Joly has no plans to leave his role.
“Hubert’s sale is solely related to his desire to diversify his overall personal holdings,” Jeff Shelman, a spokesman for Best Buy, said in an e-mail. “He remains firmly committed to Best Buy and is excited to lead the company in this next phase. He has absolutely no plans and no desire to explore other opportunities.”
Best Buy fell as much as 4.9 percent to $30.76 on Monday in New York. Before the tumble, the shares had gained 6.2 percent this year.
Best Buy dealt investors an earlier blow last month when it posted uneven results and announced the departure of key executive Sharon McCollam, who has been instrumental to the company’s comeback plan.