Flat-Panel TVs Fuel Best Buy Q114 Jun, 2006 By: Erik Gruenwedel
Triple-digit same-store sales gains of flat-panel televisions offset 4.3% same-store sales decline of entertainment software, including DVD, as Best Buy Inc. posted first-quarter (ended May 27) income of $234 million, compared to $170 million during the same period last year.
Sales of music CDs and movie DVDs as a percentage of revenue dropped 2%, while same-store sales of MP3 portable music players increased 12.1%.
The Minneapolis-based consumer electronics retailer cited the addition of 104 Magnolia Home Theatre in-store departments for helping boost Best Buy revenue 14%, to $6.9 billion from $6.1 billion last year.
Separately, Best Buy announced it would soon offer broadband-enabled cell phones from Amp'd Mobile, which has audio and video content relationships with several entertainment properties, including MTV Networks and Universal Music Group.