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Best Buy Reports a 10% Sales Increase

submitted on March 28, 2009 by YanBz in "Stores / Merchants"
Recession? What recession? BestBuy's sales rose 10 percent in forth quarter. The biggest sellers are laptops and cellphones

The Best Buy Company, the consumer electronics retailer, posted a fourth-quarter profit on Thursday that was better than expected as sales rose 10 percent.

“We prepared for reduced consumer spending, and we were pleased when the quarter finished stronger than it began,” the chief executive, Bradbury H. Anderson, said in a statement.

Best Buy’s profit fell 23 percent, to $570 million, or $1.35 a share, as revamping charges dragged down results. That compared with $737 million, or $1.71 a share, a year earlier.

Excluding one-time charges of 26 cents a share, Best Buy earned $682 million, or $1.61 a share, better than the $1.40 expected by analysts surveyed by Thomson Reuters.

Revenue in the period, which ended Feb. 28 and was the fourth quarter of Best Buy’s fiscal year, was $14.72 billion, up 9.7 percent from $13.42 billion in the period a year earlier. The increase came from strong sales of laptop computers and cellphones, with help from Best Buy Europe and 213 store openings in the last year.

The revenue results were tempered by a 4.9 percent decline in sales at stores open at least a year, which Best Buy attributed to reduced traffic. Best Buy said traffic fell, but the average amount shoppers were spending climbed in the period.

Best Buy now expects a 2010 profit of $2.50 to $2.90 a share on revenue of $46.5 billion to $48.5 billion.

Analysts expect earnings of $2.47 a share on sales of $48.05 billion.

Stock in Best Buy, which is based in Richfield, Minn., rose $4.21, or 13 percent, to $37.67 a share.

  • 19609
    Posted by MikeG on March 28, 2009 [reply] 0 0
    Even though it's Best Buy, it's nice to hear some good news.
  • 19622
    1 1 1
    Posted by overaged on March 29, 2009
    [reply] 0 1
    I'm willing to bet that their increase in profits is due to the circuit city bankruptcy.
    • TieFighters
      Posted by TieFighters on March 29, 2009 [reply] 0 0
      cirucit city spillover is reason

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