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Old 09-20-2011, 01:57 AM

Crap. My store better not be one of the thirty - article link.

Best Buy Q2 Income Falls 30%
(Home Media Magazine)

September 13th, 2011
by Erik Gruenwedel

Consumer electronics retailer's earnings hurt by same-store sales declines in TVs, video games and packaged media entertainment.

Best Buy Co. Sept. 13 reported second-quarter (ended Aug. 27) net income of $177 million, down 30% from net income of $254 million during the previous-year period.

The Minneapolis-based consumer electronics retailer cited the ongoing economic sluggishness and downward trend in overall CE industry sales for the downturn, underscored by a 2.8% decline in same-store sales (open at least 14 months).

"We're still facing an uncertain macro [economic] environment," CEO Brian Dunn said in a call with analysts.

Sales of televisions, including connected units and 3D, failed to impress with double-digit same-store sales declines. Best Buy continues to focus onsales of larger-screen TVs (from 46-inches), representing 60% of TV sales in the quarter.

"We went into this year with expectations that TV sales would be soft," CFO Jim Muehlbauer said during a call discussing the fiscal results.

Mobile phones stood out as a primary growth segment (despite year-over-year comp decline), along with tablet computers and appliances, with domestic same-store sales up 9%.

Best Buy continues to explore subleasing store space, including a 50% reduction in store space in 30 stores this year. Meanwhile, Best Buy added 12 Five Star CE stores in China, bringing its footprint in the country to 178 stores. Same-store comps in China increased 7%.

Domestic revenue dropped 1.5% to $8.3 billion, while total sales remained flat at $11.3 billion.
I know I've bought less, since they have less media inventory. Hell, they didn't even have the box set for "Citizen Kane: 70th Anniversary" on DVD just Blu-Ray.

Last edited by JohnIan; 09-20-2011 at 02:00 AM..
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