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Best Buy Reports Sales Hike

7 Mar, 2002 By: Joan Villa

Consumer electronics retailer Best Buy reported a 28 percent hike in fourth quarter sales to $6.98 billion, adding it expects to show an 80 percent increase in earnings per share when final quarterly financials are released April 2.

The increase for the quarter ended March 2 was driven by a 4.5 percent gain in comparable store sales and the addition of 62 Best Buy stores in the past 12 months.

Sales of consumer electronics were particularly strong, led by digital televisions, large screen TVs and digital cameras. Continued sales gains in video game hardware and software as well as DVD movies drove higher entertainment software sales for the quarter, the company said. All digital products, including DVD, comprised 20 percent of sales at Best Buy stores, up from 15 percent in the year-ago quarter.

Vice chairman Brad Anderson credited the record performance to "strong holiday sales momentum, the digital product cycle and outstanding execution by the company's 90,000 employees." The company expects earnings to grow by 80 percent in the quarter and by 40 percent for the year, ahead of original guidance, he noted.

Best Buy's stock closed up over 6 percent at $72.99 per share on the March 7 news.

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