Best Buy Co. Inc., the U.S.'s largest consumer electronics retailer, raised its first-quarter profit outlook as it posted an 11-percent increase in sales.
The Richfield, MN, U.S.-based chain said earnings from continuing operations for the quarter ended May 31 are expected to range from $0.19 to $0.21 per share. That was up from its previous goal of $0.14 to $0.20.
First-quarter revenue from continuing operations rose to $4.67 billion, from $4.20 billion a year earlier. Sales increased 2.2 percent — more than anticipated — at Best Buy stores open at least 14 months, said Brad Anderson, vice chairman and chief executive. "Our sales rebounded nicely in April and May, driven by a swift conclusion to the war in Iraq and a gradual recovery in consumer confidence," he said. He added, "Comparable-store sales gains benefited from the compelling offers we presented to our customers, including free shipping on purchases from BestBuy.com."
The fastest-growing product categories were digital televisions, digital cameras, digital camcorders, notebook computers, and computer peripherals. Sales of cellular telephones also showed gains, driven by new products with enhanced features. However, sales of desktop computers declined as consumers moved to mobile computing. Sales of audio products and appliances lagged. (Reuters)
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