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BEST BUY CO., INC. REPORTS RESULTS FOR SECOND QUARTER 1993

 BEST BUY CO., INC. REPORTS RESULTS FOR SECOND QUARTER 1993
 MINNEAPOLIS, Sept. 22 /PRNewswire/ -- Best Buy Co., Inc. (NYSE: BBY) today reported financial results for the second quarter of its fiscal 1993 year, which ended Aug. 29, 1992.
 According to Richard M. Schulze, founder, chairman and CEO, earnings for the second quarter increased 48 percent to $2,615,000, or 23 cents per share. This compares with earnings of $1,767,000, or 20 cents per share, for the second quarter last year. For the first six months of fiscal 1993, earnings increased 78 percent to $3,859,000 or 33 cents per share, compared to earnings of $2,172,000, or 25 cents per share, for the first six months last year.
 Previously reported revenues increased 47 percent in the second quarter to $285 million and increased 48 percent for the six-month period to $532 million. Six new stores were opened during the second quarter of this year. The company operated 79 stores at Aug. 29, 1992, compared to 60 stores at Aug. 31, 1991.
 The improvement in operating results is mainly due to comparable store sales increases of 15 percent for the second quarter and 16 percent for the six-month period; operating income from the 17 new stores opened in the prior fiscal year; reduced operating expenses as a percentage of revenues; and lower interest expense. Comparable sales growth experienced by the company is exceeding the reported trend of most retailers. Personal computer and entertainment software categories continue to lead sales growth, and market share has increased in most other categories.
 The gross profit margin was 19.0 percent compared to 20.9 percent in the second quarter last year and 19.5 percent compared to 21.1 percent for the comparable six-month periods. The lower gross profit margin percentages mainly reflect a higher level of personal computers in the company's sales mix and a reduced emphasis on the sale of extended service plans.
 Selling, general and administrative expenses were lower by 1.7 percent of revenues for the second quarter and 1.6 percent for the six- month period. The lower expense ratio has been achieved despite expenses incurred in preparation for the company's planned 36 new stores this year. Interest expense was lower in the second quarter mainly due to the repayment of a portion of the company's subordinated notes. Earnings per share did not increase in the same proportion as dollar earnings due to a higher number of common shares outstanding.
 The company intends to open 30 new stores during its third fiscal quarter. Nine of these stores were opened on Sept. 11, 1992, and two on Sept. 18, 1992. Eight of these 11 stores were opened in the Chigagoland area with an additional seven stores planned this year for that market.
 Best Buy reports sales on a 5-4-4 week basis. Best Buy is the second largest publicly held consumer electronics and major appliance speciality retailer in the nation. Presently, the company sells nationally-recognized name brand consumer electronics, major appliances, personal computers and other home office products, entertainment software and photographic equipment at 90 stores in 13 states (Minnesota, Texas, Wisconsin, Missouri, Illinois, Colorado, Iowa, Kansas, Oklahoma, Nebraska, Arkansas, Indiana, and South Dakota.) Best Buy's common stock is traded on the New York Stock Exchange, symbol BBY.
 BEST BUY CO., INC.
 Statements of Operations
 Period Ended Three Months Six Months
 8/29/92 8/31/91 8/29/92 8/31/91
 Revenues $285,430,000 $193,611,000 $531,911,000 $359,190,000
 Cost of
 goods sold 231,301,000 153,162,000 428,438,000 283,221,000
 Gross profit 54,129,000 40,449,000 103,473,000 75,969,000
 Gross profit
 percent 19.0 20.9 19.5 21.1
 Selling, general &
 admin. expenses 49,474,000 36,721,000 96,285,000 70,937,000
 SG & A percent 17.3 19.0 18.1 19.7
 Operating income 4,655,000 3,728,000 7,188,000 5,032,000
 Interest expense,
 net 437,000 903,000 963,000 1,555,000
 Earnings before
 income taxes 4,218,000 2,825,000 6,225,000 3,477,000
 Income taxes 1,603,000 1,058,000 2,366,000 1,305,000
 Effective tax
 rate percent 38.0 37.5 38.0 37.5
 Net earnings $2,615,000 $1,767,000 $3,859,000 $2,172,000
 Earnings per share $ .23 $ .20 $ .33 $ .25
 Primary weighted
 avg. common
 shares outstg. 11,558,000 8,849,000 11,598,000 8,705,000
 -0- 9/22/92
 /CONTACT: Richard M. Schulze, chairman/CEO, 612-896-2448, or Allen Lenzmeier, executive vice president/CFO, 612-896-2454, both of Best Buy/
 (BBY) CO: Best Buy Co. ST: Minnesota IN: CPR SU: ERN


LD -- MN005 -- 2000 09/22/92 08:32 EDT
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Date:Sep 22, 1992
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