Best Buy Reports Strong 3Q

Consumer electronics retailer Best Buy Co. Inc. (Minneapolis) reported same store sales were up 1.7 percent for its fiscal third quarter ended on Nov. 28, 2009, while revenue rose 5 percent. Net earnings quadrupled to $227 million compared with $52 million for the prior year period.

“I believe the results we announced this morning show that our commitment to customer centricity is paying off,” says ceo Brian Dunn. “I want to thank our employees for helping us achieve significant earnings growth in the quarter and putting us in a position to deliver a good year in a tough environment.”

Looking at specific markets, Best Buy’s domestic sales increased 9 percent to $8.9 billion, with comparable store sales rising 4.6 percent. The company attributes the growth to increased traffic and an improvement in average ticket. Comparable store sales gains in notebook computers, flat panel televisions, mobile phones and appliances were partially offset by decreases in gaming, movies and music.

Internationally, third quarter sales decreased 6 percent, attributed to a same-store sales decline of 6.7 percent and the negative impact of foreign currency fluctuations. Best Buy Europe, which was included in the same-store sales calculation for the first time in the fiscal third quarter, reported a comparable store sales decline of approximately 3 percent. Canada reported a high single-digit decline in comparable store sales.

During the last 12 months, the company has opened 127 new stores.

Best Buy operates in the U.S., Canada, Europe, China and Mexico under such brands as Best Buy, Audiovisions, The Carphone Warehouse, Future Shop, Geek Squad, Jiangsu Five Star, Magnolia Audio Video, Napster, Pacific Sales, The Phone House and Speakeasy.