Wednesday, June 15, 2005
Best Buy profit soars 85 pct; shrs hit record high
#1 U.S. electronics chain, on Tuesday reported an 85 percent jump in quarterly profit, on strong sales of MP3 music players, digital TVs and video games and fewer markdowns, and its shares jumped 15 percent to a record high....
#2 player Circuit City Stores Inc., but stock in the much smaller rival rose 4 percent on hopes it would also post better-than-expected results on Friday. Best Buy's profit increased to $170 million, or 51 cents a share, for the fiscal first quarter ended May 28, compared with $92 million, or 28 cents a share, a year earlier.
...The higher margins, Best Buy said, reflected less promotional spending, speedier introduction of new products, improved vendor pricing and global sourcing, and increased sales of private label products like "Geek Squad"-branded PC networking accessories. In addition, Best Buy said stores tailored to cater to specific customer needs, showcasing popular items like flat-panel TVs, delivered same-store sales growth twice that of its other stores.
...Best Buy said it continues to expect revenue for the fiscal year of about $30 billion, and growth in sales at stores open at least 14 months of 4 to 5 percent.
Reuters 6/15/05
#2 player Circuit City Stores Inc., but stock in the much smaller rival rose 4 percent on hopes it would also post better-than-expected results on Friday. Best Buy's profit increased to $170 million, or 51 cents a share, for the fiscal first quarter ended May 28, compared with $92 million, or 28 cents a share, a year earlier.
...The higher margins, Best Buy said, reflected less promotional spending, speedier introduction of new products, improved vendor pricing and global sourcing, and increased sales of private label products like "Geek Squad"-branded PC networking accessories. In addition, Best Buy said stores tailored to cater to specific customer needs, showcasing popular items like flat-panel TVs, delivered same-store sales growth twice that of its other stores.
...Best Buy said it continues to expect revenue for the fiscal year of about $30 billion, and growth in sales at stores open at least 14 months of 4 to 5 percent.
Reuters 6/15/05
# posted by Lynn Wegley @ 8:10 PM 
