Best Buy’s Q1 profit up slightly
Best Buy (NYSE: BBY), which is selling fitness equipment in select stores, reported weaker-than-expected first-quarter results as consumers spent less and the company ramped up its own spending on things like renovations and information technology.
Company executives reported in a statement that the first quarter makes up just 10 percent of Best Buy’s annual revenue and expressed confidence in Americans’ demand for products such as phones and computers.
Its net income rose about 1 percent to $155 million, or $0.36 per share, during the three months ended May 29, from $153 million, or $0.36 per share, a year ago. Best Buy also spent 12 percent more money itself, exacerbating the profit shortfall.
Revenue rose almost 7 percent, to $10.79 billion from $10.1 billion.
Revenue in stores open at least a year rose 2.8 percent. Best Buy has forecast that the measure will come in at 1 percent to 3 percent for the fiscal year.
The company said it will maintain its full-year forecast — earnings of $3.45 to $3.60 per share on revenue of $52 billion to $53 billion.
–Compiled by Wendy Geister
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