Best Buy beats street despite Q1 profit slump

MINNEAPOLIS — Best Buy reported Tuesday that net income for the first quarter fell 12% to $136 million, or 35 cents per diluted share, hurt by increased promotions and lower demand for such items as flat-panel televisions and digital cameras. But strong showings in China, mobile phone sales and online performance pushed helped to boost profit and revenue past analyst estimates.

Revenue edged up 1% to $10.9 billion on a 12% jump in online revenue. Same-store sales dipped 1.7%. However, domestic online sales rose 12%, while domestic mobile-phone comparable sales jumped 28%. Tablet computers, digital book readers, appliances and services also saw higher demand.

Best Buy has shored up its profit picture by shifting toward more profitable products such as mobile phones, video games, appliances, e-readers and tablets.

Commenting on the results, Brian Dunn, CEO of Best Buy, said,We're pleased that our actions improved sales trends within the quarter, with continued double-digit growth online and strong growth of mobile phones and connections. We also made progress on our goal of enhancing returns by continuing strong share repurchasing activity."