Good News from Best Buy


Given all the gloom and doom about the holiday shopping season, Best Buy's third quarter numbers come as a pleasant surprise.

Best Buy Co., the nation's biggest consumer electronics retailer, said Tuesday its third-quarter profit jumped 52 percent, boosted by holiday shopping and sales of higher-ticket items such as flat-panel TVs.

The results beat Wall Street expectations and the company boosted its outlook for the year.

Its shares rose more than 2 percent in premarket trading.

Profit for the quarter ended Dec. 1 rose to $228 million, or 53 cents per share, from $150 million, or 31 cents per share in the prior-year period.

Revenue rose 17 percent to $9.93 billion, from $8.47 billion last year.

Analysts polled by Thomson Financial predicted a profit of 41 cents per share on revenue of $9.44 billion. The earnings estimates typically exclude one-time items.

Same-store sales rose 6.7 percent, helped by higher average selling price and a calendar shift that added an extra week of holiday shopping to the quarter. Same-store sales, or sales at stores open at least fourteen months, is a key indicator of retail performance since it measures growth at existing stores rather than newly opened ones.

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Elaine Misonzhnik

Senior associate editor Elaine Misonzhnik has been writing for National Real Estate Investor since June 2006 and has covered commercial real estate for more than 12 years. She first became...
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