Apr 2, 2008 10:42 am US/Central
Best Buy Profit Down, But Above Expectations
RICHFIELD, Minn. (AP) ―
-
-
Analysts polled by Thomson Financial expected a smaller $1.65 per share profit.
CBS4
Best Buy Co., the nation's largest consumer electronics retailer, said Wednesday its fourth-quarter earnings slipped 3 percent as customer traffic slowed after the holidays.
The quarter and Best Buy's outlook for this year both beat Wall Street estimates, although its guidance depends on a strong second half of the year. Its shares jumped more than 3 percent in morning trading.
"The company over the years has had a number of times in which it's faced a difficult economic climate," Vice Chairman and CEO Brad Anderson said on a conference call. "... And this is one of those times, where the environment is very challenging."
The Richfield, Minn.-based company said its profit fell to $737 million, or $1.71 per share, in the quarter ended March 1, from $763 million, or $1.55 per share last year. Earnings per share rose because there were fewer shares outstanding in the most recent quarter.
Analysts polled by Thomson Financial expected a smaller $1.65 per share profit. Best Buy in February predicted a modest decline in fourth-quarter profit.
Revenue rose 4 percent to $13.42 billion from $12.9 billion a year ago. Analysts expected revenue of $13.19 billion.
Sales at stores open at least 14 months declined 0.2 percent in the quarter, despite growth in sales internationally. The decline at U.S. stores was 0.9 percent.
Interim Chief Financial Officer Jim Muehlbauer said Best Buy is planning for a "soft consumer environment in the near-term," and that it's counting on second-half growth to offset "modest declines" in the first half.
That second-half growth will come from a combination of an improving economy, and internal actions such as expanding its Best Buy Mobile phone sales from 181 stores now to the majority of its more than 800 U.S. stores.
For fiscal 2009, the company expects a profit of $3.25 to $3.40 per share on revenue of $43 billion to $44 billion. Analysts had expected a profit of $3.31 per share. Best Buy said it expects comparable store sales to grow 1 percent to 3 percent for the year, with the fastest growth at its international stores.
For the full year, Best Buy earned $1.41 billion, or $3.12 per share, up from $1.38 billion, or $2.79 per share, during the prior year. Revenue rose to $40 billion from $35.9 billion a year ago.
Best Buy shares rose $1.53, or 3.5 percent, to $45 in morning trading.
(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
Click to enlarge
Stumble It!
