NEW YORK – Best Buy, one of America’s largest chains of consumer electronics outlets, reported quarterly results that were better than expected, maintaining the company’s outlook for the year thanks to the recorded progress in its recovery plan.
The results drove shares of the largest consumer electronics chain in the world by almost 4% and eased concerns about the future of the retailer after its president, Brian Dunn, abruptly resigned last month amidst an investigation into allegations of misconduct.
Critics were also worried that Best Buy has just become a showcase for Amazon and other online retailers.
“Best Buy is in recovery and strategic priorities that were presented earlier this year are just the first phase of changes to come. We know that we have to adapt better to new market realities,” said Mike Mikan, interim chief executive.
Sales rose 2.1% to 11.61 million, exceeding analysts’ average estimate of 11.52 million.
Net income fell to $161 million or 47 cents per share for the quarter ending May 5, a long way from $255 million or 64 cents a share a year earlier.
Excluding items, the retailer earned 72 cents per share, beating the average estimate of 59 cents.
The results from Best Buy were also driven by a lower tax rate and the strength of its Internet business in America.
The company maintained its outlook for fiscal year 2013. Best Buy expects earnings in the range of $3.50 to $3.80 per share, excluding restructuring costs.