Best Buy returned to a profit in the fourth quarter and topped Wall Street expectations as it cut costs to offset declining sales.
"The fourth quarter was an environment of declining retail traffic, intense promotion, fewer holiday shopping days and severe weather," Joly said in a statement. "In the face of these unusual circumstances, our strategy to be price competitive and provide an improved customer experience resulted in market share gains in a weaker-than-expected consumer electronics market."
Best Buy has also introduced shop-within-shops - dedicated store space and signage for top brands like Apple, Samsung and Microsoft.
"We expect more and better of the same in this category," Joly said.
The company has cut costs aggressively and during the quarter, annualized cost reductions increased by $260 million. Part of this effort to cut costs has resulted in the layoffs of thousands of employees at stores across the country, the New York Post reports. According to sources, staff cuts could affect up to 2,000 managers and supervisors. At least 500 were notified last week, with more expected to hear the news this week.
Total annualized savings have now reached $765 million, exceeding the target laid out by Joly in 2012, and on Thursday, Best Buy upped that target to $1 billion.
Net income after paying preferred dividends totaled $293 million, or 83 cents per share. That compares with a loss of $409 million, or $1.21 per share last year.
Excluding one-time items such as restructuring costs, asset impairments and other costs, net income was $1.24 cents per share, easily beating the $1.01 that analysts had projected, according to a poll by FactSet.
Revenue fell 3 percent to $14.47 billion from $14.92 billion. Analysts expected revenue of $14.67 billion.
Shares rose $1.82 to $27.64 in morning trading. The stock has fallen fell 35.3 percent since the beginning of the year.