Best Buy Q3 Profit Down14 Dec, 2011 By: Chris Tribbey
Best Buy’s third-quarter profit was down nearly 30%, the retailer reported Dec. 13, despite revenue of $12.1 billion, an increase of 1.7% year-over-year.
For its fiscal third quarter of the year, ended Nov. 26, Best Buy reported a profit of $154 million, down from $217 million from the same quarter of 2010.
“We took decisive actions to drive our business, specifically in revenue and market share, both in-store and aggressively online,” Best Buy CEO Brian Dunn said in a conference call with investors. “These actions, while negatively impacting gross margin, significantly resonated with customers and resulted in improved traffic and comp sales, including a significant increase in our online growth.”
HDTV sales were up more than 10% for the quarter, and the retailer also reported higher comparable store sales for physical movies.
“Movie sales also benefited from a stronger lineup of new releases that occurred during the quarter,” said James Muehlbauer, Best Buy’s chief financial officer.
For the fiscal fourth quarter Best Buy is estimating revenue between $51 billion and $52.5 billion, and earnings per share between $3.35 to $3.65.