Best Buy full year revenues up 1%
Retailer weathers lack of consumer demand with small dip in profitability
U.S. based retailer Best Buy have announced fourth quarter and full year results, with almost no change in revenues, but a small drop in entertainment sales.
Revenues for the fourth quarter ended February 28 were down 1.8 per cent to $16.26 billion, while net earnings also fell from $779 million in 2010 to $651 million this year.
Full year results were similarly stable, with revenues growing by 1 percent year-over-year to $50.3 billion. Online revenues alone rose by 14 per cent to $2.5 billion. Adjusted net earnings saw a 9 per cent increase to $3.43 per diluted share.
The company's Entertainment Hardware & Software department - which includes video games, DVDs and CDs - saw a 14.3 fall in comparable store revenues in the U.S. and a 9.9 per cent drop internationally.
The category remains the company's third biggest though, after consumer electronics and home office - both of which also saw small drops in demand.
Video games were not mentioned specifically in the company's report but CEO Brian Dunn commented that, "Overall demand for key consumer electronics products was a challenge for the industry last year."
"Thanks to the hard work and dedication of our employees, we accomplished several key initiatives during the year that helped to both partially mitigate these challenges and build critical capabilities for profitable growth such as continued growth in connections, actions taken to enhance our multi-channel efforts including online and improve returns in our international business," he added.