Best Buy Beats Expectations in Third Quarter
Best Buy delivered third-quarter earnings before the market open today that beat analysts' expectations. For the period ended Nov. 2, Best Buy posted a profit of $0.18 per share, which was ahead of estimates for earnings-per-share of $0.11 for the quarter. The company reported revenue that was in line with expectations at $9.36 billion.
However, same-store sales left a lot to be desired. Best Buy showed comparable store sales increasing just 0.3% for the period. Nevertheless, the results give investors a look into the health of Best Buy's retail business, ahead of the all-important holiday shopping season.
The world's biggest consumer electronics retailer said it would offer "highly competitive prices and compelling promotions" this holiday season in hopes of pulling more customers through its doors. Looking to the fourth-quarter and fiscal-year-end, Best Buy warned that pressure from competitors in the space could hurt the company's gross margin going forward. This holiday season is expected to be particularly tough for retailers since it's six days shorter than last year and stores are opening up earlier than ever during the Thanksgiving holiday shopping period. Best Buy will open at 6 p.m. on Thanksgiving Day this year, compared with a midnight Friday opening last year.
Shares of the big-box store have more than tripled this year, to trade around $43 apiece. However, the stock was down in premarket trading today because of near flat comps and margin pressures in the current quarter.
-- Material from The Associated Press was used in this report.
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