Best Buy quarterly results below expectations

MINNEAPOLIS Best Buy reported net earnings of $155 million, or 36 cents per diluted share, for its fiscal first quarter ended May 29, compared with $153 million, or 36 cents per diluted share, for the prior-year period. Diluted earnings per share decreased 14% versus the prior-year period’s adjusted diluted earnings per share of 42 cents.

During the first quarter of fiscal 2011, Best Buy’s revenue increased 7% to $10.8 billion, compared with revenue of $10.1 billion for the first quarter of fiscal 2010. The increase reflected the impact of net new stores in the past 12 months, a comparable-store sales gain of 2.8% and the favorable impact of fluctuations in foreign currency exchange rates, the company reported.

“While our financial results in the fiscal first quarter were below expectations, we remain confident that the strategic investments we are making will deliver more robust connected solutions for customers and support increased margin expansion during the fiscal year,” said Jim Muehlbauer, Best Buy’s EVP finance and CFO. “We continue to expect solid top-line growth and expansion of our annual operating margin to approximately 5% revenue in fiscal 2011.”