Best Buy Co., Inc., an appliance and electronics retailer, reported that revenue rose 10 percent to U.S. $6.65 billion for the fiscal third quarter ended Nov. 27, 2004, compared to $6.03 billion for the third quarter of 2003.
Comparable store sales increased 3 percent and were attributed to increased sales of appliances, digital televisions, MP3 players, digital cameras, and notebook computers.
Best Buy reiterated its guidance of third-quarter earnings from continuing operations of $0.41 to $0.47 per diluted share, compared with earnings from continuing operations of $0.37 per diluted share for the same period of fiscal 2004. The company said it continues to expect a comparable store sales gain of 3 to 5 percent for its fourth quarter, which ends on Feb. 26, 2005.
According to the company, the strongest-performing product category was appliances, which posted a comparable store sales gain in the high single-digits and represented 6 percent of revenue. The company enjoyed a low double-digit comparable store sales gain in major appliances for the third quarter.
The consumer electronics product category had a low single-digit comparable store sales gain for the third quarter, maintaining its position with 37 percent of revenue. Comparable store sales of digital televisions increased by the strong double digits, benefiting from expanded assortments of flatpanel TVs, larger screen sizes of LCD TVs, and high consumer interest.
The home office product category made up 36 percent of revenue. Increases included MP3 players, notebook computers, and networking and computer services. Best Buy said comparable store sales of desktop computers were even with that of last year's third quarter, reflecting consumers' continued migration to notebook computers.
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