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Best Buy reports 15% decline in 1Q net earnings

6/16/2009

Best Buy a leading retailer of consumer electronics, reported net earnings of $153 million, or 36 cents per diluted share, for its fiscal first quarter ended on May 30. Net earnings declined by 15% compared with $179 million, or 43 cents per diluted share, for the prior-year period.

During the first quarter of fiscal 2010, Best Buy’s revenue increased 12% to $10.1 billion, compared with revenue of $9 billion for the first quarter of fiscal 2009.

The domestic segment’s fiscal first-quarter revenue totaled $7.5 billion, an increase of nearly 1% versus the prior-year period. Growth from the net addition of 115 stores in the past 12 months was partially offset by a comparable-store sales decline of 4.9%.

 

 

Jim Muehlbauer, Best Buy’s EVP finance and CFO, said, “Our first quarter results reflect strong execution of our strategy in a difficult consumer environment. Once again, our teams grew market share and improved the gross profit rate while maintaining a disciplined approach to expense management.” Muehlbauer added, “We are pleased to report that the year is off to a good start and we remain focused on delivering our annual earnings guidance of $2.50 to $2.90 per diluted share, excluding restructuring charges. Given the limited visibility to consumer spending in the back half of the year, along with the fact that a majority of the company’s earnings are derived from the holiday selling season, it’s prudent to maintain our original guidance at this point. We remain focused on executing on our strategic priorities, growing our market share and continuing to invest for future growth opportunities.”

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