Best Buy December Comparable Store Sales Increase 9.3 Percent; Revenue Increases 19% to $4.64 Billion; Company Expects Q4 Earnings at Middle to Upper End of Prior Range.Business Editors/High-Tech Writers Digital Experience 2004 LAS VEGAS--(BUSINESS WIRE)--Jan. 8, 2004 Best Buy Co., Inc. (NYSE NYSE See: New York Stock Exchange :BBY BBY Best Buy (stock symbol) BBY Before Battle of Yavin (Star Wars) BBY BeBeyond (Chinese online community) ):
December Revenue Summary - Fiscal 2004
(U.S. dollars in billions)
----------------------------------------------------------------------
Comparable
Revenue Revenue Gain Store
Sales Gain(1)
----------------------------------------------------------------------
Continuing Operations $4.64 19% 9.3%
----------------------------------------------------------------------
Domestic $4.13 17% 9.6%
----------------------------------------------------------------------
International $0.51 46% 6.5%
----------------------------------------------------------------------
Year-to-Date Revenue Summary - Fiscal 2004
(U.S. dollars in billions)
----------------------------------------------------------------------
Comparable
Revenue Revenue Gain Store
Sales Gain(1)
----------------------------------------------------------------------
Continuing Operations $20.74 16% 6.5%
----------------------------------------------------------------------
Domestic $18.75 14% 6.8%
----------------------------------------------------------------------
International $1.99 41% 3.9%
----------------------------------------------------------------------
Note: All periods presented reflect the classification of Musicland's
financial results as discontinued operations.
(1) Comprised of revenue at stores and Internet sites operating for
at least 14 full months, as well as remodeled and expanded locations.
Relocated stores are excluded from the comparable store sales
calculation until at least 14 full months after reopening. Acquired
stores are included in the comparable store sales calculation
beginning with the first full quarter following the first anniversary
of the date of acquisition. The calculation of the comparable store
sales gain excludes the impact of fluctuations in foreign currency
exchange rates.
Best Buy Co., Inc. (NYSE:BBY), from the Consumer Electronics Show, today reported total revenue for the fiscal month ended Jan. 3, 2004, of $4.64 billion, an increase of 19 percent compared with $3.89 billion for the fiscal month ended Jan. 4, 2003, including gains from the addition of 72 new stores in the past 12 months. Best Buy also reported a 9.3-percent gain in comparable store sales for the five-week period, which was better than expected. The Company attributed the comparable store sales gain to increased customer traffic, particularly late in the holiday selling season; compelling promotional offers; and outstanding execution at all of its retail stores. "Sales accelerated in the last two weeks of the period, as customers redeemed re·deem tr.v. re·deemed, re·deem·ing, re·deems 1. To recover ownership of by paying a specified sum. 2. To pay off (a promissory note, for example). 3. gift cards and bought themselves the gifts they really wanted," said Brad Anderson Anderson, river, Canada Anderson, river, c.465 mi (750 km) long, rising in several lakes in N central Northwest Territories, Canada. It meanders north and west before receiving the Carnwath River and flowing north to Liverpool Bay, an arm of the Arctic , vice chairman and chief executive officer. "Credit for our market share gains goes to our store employees, who are knowledgeable and eager to find the right solution for each customer; effective advertising and promotional campaigns; and improved in-stock levels," he continued. "Customer loyalty, customer satisfaction and brand awareness are at all-time highs for Best Buy." U.S. and Canadian Stores Grocery Stores
The Company's domestic segment, which includes 600 U.S. Best Buy stores and 22 Magnolia Audio Video Magnolia Audio Video is a specialty consumer electronics retailer in the United States. It currently operates 13 standalone stores throughout Washington, Oregon, and California. stores, reported revenue of $4.13 billion for fiscal December, an increase of 17 percent over the prior year. The domestic segment reported a comparable store sales gain of 9.6 percent for the fiscal month. U.S. Best Buy stores had a comparable store sales gain of 9.6 percent, reflecting increased customer traffic and exceptional in-store execution. Magnolia Audio Video had revenue of approximately $20 million, an increase of 12 percent, and a comparable store sales decline of 3.3 percent. "Customers recognize our stores as the destination for solutions, whether they are into home entertainment, digital imaging, digital music, personal networking or video gaming video gaming n. 1. Gambling by means of interactive games of chance played on a video screen. 2. The playing of video games. ," said Al Lenzmeier, president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . "They prefer to shop at our stores because they have fun and appreciate our great assortments, good values and knowledgeable store associates." The Company's international segment, which includes 108 Future Shop stores and 19 Best Buy stores in Canada, contributed revenue of approximately $510 million for the fiscal month, an increase of 46 percent over the prior year. Half of the revenue gain was due to favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. exchange rates, and the addition of new stores also had a significant impact. The international segment had a comparable store sales gain of 6.5 percent in that period, reflecting solid holiday and Boxing Day results. "Twenty-eight of our Canadian stores exceeded $1 million Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. in revenue on Boxing Day, compared with 19 in the prior year," said Lenzmeier. "We believe we gained market share in Canada this holiday selling season, and we continue to be pleased with our dual-branding strategy, as both brands showed comparable store sales increases for the month." The Company's gain in comparable store sales for fiscal December reflected significant increases in revenue from notebook and desktop computers as well as digital imaging products, including digital cameras, digital camcorders and printers. Comparable store sales of digital TVs grew by the strong double digits Double Digits was a pricing game on the American television game show, The Price Is Right. Played from April 20, 1973 through May 18, 1973's show, it was played for a car and used small prizes. . Entertainment software products also contributed to the increase, as revenue from CDs rose sharply and revenue from DVDs and video game software increased as well, on a year-over-year basis. Comparable store sales of appliances increased by the low single digits. For the first 10 months of fiscal 2004, the Company reported revenue of $20.74 billion, an increase of 16 percent, driven by a strong comparable store sales gain and the addition of new stores in the past 12 months. The Company's comparable store sales gain year-to-date was 6.5 percent, including a domestic gain of 6.8 percent and an international gain of 3.9 percent. Company Expects Earnings for Fiscal 2004 to Finish at Middle to High End of Range Darren Jackson Darren Jackson (born 25 July 1966 in Edinburgh) is a former Scottish professional footballer. Career Jackson played for Meadowbank Thistle, Newcastle United, Dundee United, Hibernian, Celtic, Coventry City, Hearts, Livingston, St. Johnstone and Clydebank. , executive vice president and CFO See Chief Financial Officer. , said, "December's record revenue is a great start to the quarter. We capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. on an opportunity to gain significant market share. The home office category was the standout performer in the month. Given the revenue mix, we now expect our operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. rate to be equal to that of the prior year's fourth quarter. Assuming that comparable store sales finish at the high end of our range, we should finish at the middle to upper end of the earnings ranges we provided on December 17." The Company had estimated that earnings from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the would increase by approximately 18 percent to a range of $1.34 to $1.39 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share for the fourth quarter of fiscal 2004, compared with $1.16 per diluted share for the fourth quarter of fiscal 2003. The Company also had said that it expected earnings from continuing operations of $2.35 to $2.40 per diluted share for fiscal 2004, a 24-percent increase compared with $1.91 per diluted share in fiscal 2003. The average analyst estimate for Best Buy's earnings from continuing operations is $1.38 per diluted share for the fourth quarter and $2.39 per diluted share for the fiscal year. The Company said it plans to conduct a conference call for analysts, institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. and news media at 11 a.m. eastern time (8 a.m. pacific time) today. Individuals may access the live call via the Internet on the Company's Web site at www.BestBuy.com by clicking on the "For Our Investors" link. Following the live event, the call is to be posted on the Audio Archive page of Best Buy's Web site so that it may be accessed at any time. Best Buy's quarterly financial results and news releases can be found on the Internet at the Company's Web site, www.BestBuy.com, or accessed via Business Wire's Web site at www.businesswire.com. The Company is expected to announce its fourth-quarter revenue on March 4, 2004, and its fourth-quarter earnings on March 31, 2004. Statements made in this news release, other than those concerning historical financial information, should be considered forward-looking and subject to various risks and uncertainties. Such forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. are based on management's beliefs and assumptions regarding information currently available, and are made pursuant to the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Exchange Act of 1934, as amended. The Company's actual results could differ materially from those expressed in the forward-looking statements. Factors that could cause results to vary include, among others, those expressed in the Company's filings with the Securities and Exchange Commission. The Company has no obligation to publicly update or revise any of the forward-looking statements that may be in this news release. About Best Buy Co., Inc. Minneapolis-based Best Buy Co., Inc. (NYSE:BBY) is North America's leading specialty retailer of consumer electronics, personal computers, entertainment software and appliances. The Company's subsidiaries operate retail stores and/or Web sites under the names: Best Buy (BestBuy.com), Future Shop (FutureShop.ca), Geek Squad The Geek Squad is a subsidiary of the Best Buy Company and is based in Richfield, Minnesota [1]. Originally founded in 1994 by Robert Stephens, it offers various computer-related services and accessories for residential and commercial clients. (GeekSquad.com), and Magnolia Audio Video (Magnoliaav.com). The Company's subsidiaries reach consumers through approximately 750 stores in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Canada. |
|
Printer friendly
Cite/link
Email
Feedback
Reader Opinion