Wednesday, December 19, 2007
Best Buy, the No. 1 electronics retailer, posted much better-than-expected third-quarter profit and sales Tuesday, which it attributed to an extra sales reporting week last month and new store openings.
Best Buy posted net income of $228 million, or 53 cents a share in the quarter, which included Black Friday, or the day after Thanksgiving that marks the start of the holiday shopping season. That compares to net income of $150 million, or 31 cents, a year earlier.
Revenue jumped 17 percent to $9.9 billion in the quarter. Analysts polled by Thomson Financial has forecast earnings of 41 cents on revenue of $9.4 billion.
Sales at Best Buy stores open at least a year, which is a key measure of retail performance known as same-store sales, rose 6.7 percent in the quarter.
Best Buy said strong demand for flat-panel TVs, notebook computers and GPS devices drove its same-store sales gains in the quarter and helped to offset sales declines in projection and tube TVs, DVDs and CDs.
Gross profits benefited from Best Buy being less promotional overall on its more expensive items like home theater systems.
By: DocMemory
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