Best Buy Q1 Comp Sales Up3 Jun, 2004 By: Holly J. Wagner
Sales of DVD software, digital televisions and cameras, and MP3 players helped Best Buy to a 17 pecent increase in same-store sales for the first quarter ended May 29, the company reported.
Entertainment software accounted for 20 percent of the quarterly revenue, the same percentage as in the comparable quarter in 2004. “The strongest-performing product category was entertainment software,” according to a corporate statement.
Comparable store sales of DVDs rose by strong double digits, driven by popular new releases including Lord of the Rings – The Return of the King, which surpassed the company's previous record for first-week sales of a new release. Other strong new releases in the first quarter were School of Rock, Matrix Revolutions and Master and Commander – The Far Side of the World.
Video game hardware and software posted a decline in comparable store sales in the low double digits, which the company attributed in part to a hardware price reduction.
The company opened 11 U.S. Best Buy stores during the quarter, including three 45,000-square-foot stores, five 30,000-square-foot stores and three 20,000-square-foot stores. It also opened two Magnolia Home Theater departments inside Best Buy stores and one Future Shop store in Canada.