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Best Buy Q2 profit drops 30%, misses Street


Minneapolis -- Best Buy Co. reported Tuesday that net income for the quarter ended Aug. 27 plummeted 30% to $177 million from $254 million a year earlier, missing Wall Street expectations.

Sliding same-store sales have undercut the electronic retailer’s performance as a still-soft economy continues to take a toll on electronics purchases. Revenue for the quarter edged up 0.01% to $11.35 billion, missing Wall Street’s estimate of $11.47 billion, and same-store sales declined 2.8%. The same-store dip marked the fifth consecutive quarter of same-store sales declines.

Best Buy has been proactive about cutting costs, previously announcing an innovative plan to scale back its big-box retail space by subletting square footage to other retail concepts. It also is working to grow its online and mobile businesses.

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