Best Buy mobile phone stores located in your local mall, you'll have to head to the big box stores or shop somewhere else. Joly also said that he's confident Best Buy can retain its customers, since 85 percent of its mobile shops are within three miles of a full-sized outlet anyway.
Revenue reached $15.4 billion during the quarter, a 14% increase over the year-ago quarter.
"We are excited to report strong results for the fourth quarter and the year", Joly said in a statement.
The company's overall sales at established stores rose 5 percent, fueled by a 9 percent gain at its low-price chain Old Navy. The negative impact of the new tax law was about $1.17 in diluted earnings per share; otherwise, non-GAAP diluted earnings from continuing operations in the quarter rose 25% to $2.42 per share, beating FactSet's consensus of $2.04 per share. The mobile phone business was growing quickly, with high profit margins. The small retail locations first made an appearance back in 2006 just one year before the introduction of the first generation iPhone.
Best Buy has tried to turn itself around by matching e-commerce giant Amazon.com Inc's low prices, closing underperforming stores, and improving customer service. The average estimate of 11 analysts surveyed by Zacks Investment Research was for earnings of $2.05 per share.
Shares of Best Buy Co. jumped 7 percent before the opening bell. Best Buy CEO Hubert Joly announced the closures, which will be completed by the end of May, ahead of the company's fourth-quarter 2018 earnings release.