Best Buy Co., Inc. today reported a 16-percent increase in total sales to U.S. $5.50 billion for its fiscal 2003 third quarter, which ended on Nov. 30, 2002. Total sales were $4.76 billion for the fiscal 2002 third quarter, which ended on Dec. 1, 2001. The double-digit improvement reflected the addition of 68 U.S. Best Buy stores in the past 12 months as well as the inclusion of a full quarter of sales from Future Shop, which was acquired on Nov. 4, 2001.
Best Buy's third-quarter comparable store sales declined 0.3 percent, compared with the company's guidance of no change. The late Thanksgiving this year, which placed one less week of holiday sales in the fiscal third quarter, is said to have negatively impacted the quarter's comparable store sales by approximately 1.5 percentage points.
Record Thanksgiving weekend sales contributed to a quarterly comparable store sales gain at Best Buy stores of 0.7 percent for the fiscal third quarter, on top of a 1.6-percent gain for the third quarter of fiscal 2002.
At Musicland stores - which include Media Play, Sam Goody and Suncoast stores - comparable store sales decreased 10.7 percent for the fiscal third quarter.
Canada-based Future Shop stores posted a comparable store sales gain of 3.8 percent in the quarter.
Magnolia Hi-Fi's comparable store sales gain was in the low single digits.
"Comparable store sales on Thanksgiving weekend were strong, as throngs of consumers snapped up digital products," said Brad Anderson, vice chairman and CEO of Best Buy. "With third-quarter sales in line with our guidance, we expect third-quarter earnings to be in the top half of the range we initially communicated in September."
Mr. Anderson added, "Our employees responded effectively to a very challenging environment in the third quarter. Our ability to keep pace with the strong performance of last year is a testament to our employees' continual ability to find compelling solutions for our customers."
Year-to-date, total sales rose 20 percent to $15.09 billion, compared with $12.62 billion for the first three quarters of fiscal 2002. Drivers of the increase included new stores, the acquisition of Future Shop, and a comparable store sales gain of 2.3 percent.
The company's retail stores' sales mix, by product category, is shown below. Future Shop's sales are included only from the date of acquisition.
Appliances accounted for 6 percent of sales during the first nine months of the 2002 fiscal year, compared to 7 percent in 2001
Consumer Electronics accounted for 32 percent of sales during the first nine months of the 2002 fiscal year, compared to 30 percent in 2001
Home Office products accounted for 29 percent of sales during the first nine months of the 2002 fiscal year, equal to 29 percent in 2001
Entertainment Software accounted for 25 percent of sales during the first nine months of the 2002 fiscal year, compared to 26 percent in 2001
Other products accounted for 8 percent of sales during the first nine months of the 2002 fiscal year, compared to 8 percent in 2001
Canadian and U.S. Expansion
In its fiscal third quarter the company opened new stores, including:
31 Best Buy stores in the U.S., bringing the total number of U.S. Best Buy Stores to 546
4 Future Shop stores in Canada, bringing it's total to 104 Future Shop stores
7 Best Buy stores in the greater Toronto area, bringing it's total of Canadian Best Buy stores to 8
7 Sam Goody stores, bringing its total to 838
5 Suncoast stores, bringing its total to 404
3 Magnolia Hi-Fi stores, bringing its total to 19
The company also operates 76 Media Play stores.
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