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Best Buy profits up in Q3

RBR Staff Writer Published 20 November 2013

Consumer electronics retailer Best Buy has reported profit for the third quarter, as against the net loss reported last year, aided by lower expenses even as revenues slipped.

Best buy

Net earnings attributable to Best Buy shareholders was $54m, compared to a loss of $10m in the previous year. Revenue slid to $9.362bn from $9.381bn in the prior year.

Domestic revenue rose 2.3% to $7.85bn, driven by a comparable store sales increase of 1.7%.

This growth was despite the short-term disruptions caused by the ongoing rollout of the floor space optimization, the retail deployment of the Windows Stores and the continued rationalization of non-core businesses, company said.

Best Buy CEO Hubert Joly said the third quarter top-line results make it clear that the company's focus on delivering our unique customer promises is starting to pay off.

"Looking ahead to the holiday season and beyond, our strategy is to continue to drive our Renew Blue transformation," Joly added.

Growth in mobile phones, appliances and notebooks was partially offset by expected declines in other categories, such as gaming, movies and digital imaging.

Comparable online sales increased 15.1% due to increased traffic, a higher average order value, a higher number of online orders in retail stores and higher inventory availability supported by ship-from-store and online distribution center expansion initiatives.

International revenue dropped 11.3% to $1.52bn, driven by a comparable store sales decline of 6.4%, loss of revenue from closed large format stores and the impact of adverse currency.

Image: Best Buy Corporate Headquarters is located in Richfield, Minnesota, a suburb of Minneapolis. Photo: Courtesy of Chad Davis.