Best Buy posts 2Q earnings drop

MINNEAPOLIS Best Buy has reported net earnings of 48 cents per diluted share, for its fiscal second quarter ended on Aug. 30, a decrease in diluted earnings per share of 13%, compared with 55 cents per diluted share for the prior-year second quarter.

Best Buy’s second-quarter net earnings totaled $202 million, declining by 19%, versus $250 million in the prior year’s period. The difference reflected primarily the increase in its investment spending for enhancements to U.S. stores, such as the rollout of Best Buy Mobile to the remainder of its stores, the reset of the GPS selling space, and additional investments in store labor.

Total quarterly revenue increased 12% to $9.8 billion, driven by gains from new store openings and a comparable-store sales increase of 4.2%.

The company now expects a comparable-store sales gain for fiscal 2009 in the upper half of its previously disclosed range of 1% to 3%. Best Buy estimates total revenue for the fiscal year of approximately $44 billion for the base business, which excludes Best Buy Europe.