Best Buy’s Profit Rises on Cuts, Strong Sales
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Cost cutting and strong sales drove quarterly earnings up almost 8% at Best Buy Co., the nation’s largest electronics retailer said. Chief Executive Brad Anderson predicted strong holiday sales, and Best Buy shares surged nearly 5%.
The company earned $150 million, or 46 cents a share, in its fiscal second quarter, up from $139 million, or 42 cents, a year earlier. The latest quarter includes charges of 7 cents a share for litigation settlements and other costs.
Excluding the charges, Best Buy earned 53 cents a share, a penny higher than analysts expected in a Thomson First Call survey.
Revenue for the three months ended Aug. 28 increased 13% to $6.1 billion because of 75 new stores in the last 12 months and a 4.3% gain in sales at stores open at least 14 months.
Best Buy shares rose $2.32 to $52.61 on the NYSE.
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