Best Buy Fiscal 2005 Earnings Increase
Apr 1, 2005
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Best Buy Co., Inc., North America's leading retailer of consumer electronics, reported earnings from continuing operations of U.S. $522 million, or $1.55 per diluted share, for the quarter ended Feb. 26, 2005, an increase of 11 percent compared with $469 million, or $1.40 per diluted share, for the quarter ended Feb. 28, 2004. These results compare with a median analyst consensus Mar. 31, 2005 of $1.55 per diluted share, which the company believes excluded the net $0.04 per share of dilution resulting from the impact of a lease accounting adjustment, a sales return liability adjustment, its adoption of EITF Issue No. 04-08, as well as the decrease in the company's effective tax rate due to various state and federal tax matters, as previously reported.

"We had our strongest revenue gains of the quarter in February, which allowed us to post quarterly same-store sales stronger than the trend we saw in December," said Brad Anderson, vice chairman and CEO of Best Buy. "We are proud of another year of double-digit growth in our bottom line, particularly as we invest in the transformation of our company. We believe so deeply in this transformation that we are going to accelerate it in fiscal 2006. We are planning for all of our U.S. Best Buy stores to convert to our customer-centric operating model within three years."

As reported on March 3, fourth-quarter revenue increased 9 percent to $9.2 billion, compared with revenue of $8.4 billion for the fourth quarter of fiscal 2004. The revenue increase reflected the addition of 78 new stores in the past 12 months and a comparable store sales gain of 2.8 percent.

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