Best Buy Q1 profit up, but misses Street

Minneapolis Best Buy Co. said Tuesday that its first-quarter profit inched up 1%, to $155 million from $153 million in the year-ago period, but results missed Wall Street expectations.

Sales for the quarter ended May 29 rose 7%, to $10.8 billion from $10.1 billion. Analysts expected revenue of $10.93 billion.

Same-store sales increased 2.8%.

"While our financial results in the fiscal first quarter were below expectations, we remain confident that the strategic investments we are making will deliver more robust connected solutions for customers and support increased margin expansion during the fiscal year," said Jim Muehlbauer, CFO, Best Buy.

Best Buy said its customers bought more cell phones at its mobile unit in the first quarter, and notebook computer and appliance sales were strong as well. But the retailer said that while it sold more televisions, those sales were offset by price declines.