Best Buy Q3 profit down 29%
MINNEAPOLIS — Best Buy announced that its third-quarter net income fell 29% $154 million, from $217 million in the year-ago period, worse than analysts had expected. The retailer’s profits were hurt by declining sales in some categories, plus a $150 million one-time charge associated with the planned closing of 11 big-box stores in the United Kingdom.
Total company revenue rose 1.7% to $12.1. Same store sales rose 0.3%.
Best Buy had 20% growth in online sales and 9% growth in mobile phone revenue in the United States, along with brisk sales in tablets, appliances, e-readers and movies. But it suffered declines in TVs, digital imaging and gaming.
"I'd like to thank our employees around the world for their tireless efforts during the third quarter and a successful kickoff to the holiday selling season," said Brian Dunn, CEO of Best Buy. "We took actions to provide value to customers and drive our business in this competitive consumer environment. We are pleased to report positive traffic, comparable store sales growth and continued progress on our key strategic focus areas, highlighted by strong performance online."
For fiscal 2012, the company expects revenue to be in the range of $51 billion to $52.5 billion, reflecting comparable-store sales in the range of flat to a 3% decline. Adjusted operating income dollars are expected to be in the range of a 5 percent decline to 2 percent growth. The company expects diluted EPS in the range of $3.35 to $3.65.