Best Buy Co, Inc. (NYSE: BBY) has just posted earnings. The electronics retail giant posted $0.43 EPS on $8.99 Billion in revenues. First Call had estimates of $0.37 EPS on $8.587 Billion in revenues. The company’s same store sales also showed a 3.7% gain.
As far as looking ahead, the company sees $3.25 to $3.40 EPS for fiscal 2009 (excluding new venture costs) with a 1% to 3% same store sales growth and revenues are budgeted at $43 to $44 Billion. Those estimates for Fiscal Feb-09 are $3.26 EPS and $43.9 Billion in revenues.
Interestingly enough, it looks like its Best Buy stores and "Five Stars" store openings in China are being lowered for this fiscal year.
If you have been expecting a slow retail environment or an actual slowdown then these numbers look great. Critics may point to slightly lower gross profit as a percentage of revenues (23.7% vs. 23.9%), lower operating income as a percent of revenues (3.1% vs. 3.4%) and a very slight gain in SG&A expenses as a percentage of revenues (3.1% vs 3.4%). But in today’s environment with a tough consumer and with materials and transportation costs through the roof, these numbers look rather strong.
Shares closed at $45.88 on Monday and were seen at $46.40 on last look at 8:10 AM EST. The 52-week trading range is $38.75 to $53.90.
Jon C. Ogg
June 17, 2008
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.