MINNEAPOLIS — Best Buy reported Tuesday that net income for the first quarter fell 12% to $136 million, or 35 cents per diluted share, hurt by increased promotions and lower demand for such items as flat-panel televisions and digital cameras.
Revenue edged up 1% to $10.9 billion on a 12% jump in online revenue. Same-store sales dipped 1.7%. However, domestic online sales rose 12%, while domestic mobile-phone comparable sales jumped 28%. Tablet computers, digital book readers, appliances and services also saw higher demand. Best Buy has shored up its profit picture by shifting toward more profitable products such as mobile phones, video games, appliances, e-readers and tablets.
Store sales down? Store footprint being downsized? Sales being transitioned to online? Seems like issues faced by Circuit City about 7 years ago. Will BB navigate them successfully? Stay tuned.
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