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Best Buy revenue up, profit down

But shares soar on better-than-expected news for US tech retailer

US electronic goods retailer Best Buy has reported its third quarter, 2009, fiscal results with revenue up almost 16 per cent year-on-year to USD 11.5 billion, although same-store sales were down by 5.3 per cent.

Profit too dipped from USD 228 million last year by 77 per cent to USD 52 million, meaning that earnings per share fell from 53 cents to 35 cents.

However, given the current economic climate, that set of results was seen as largely positive by investors and the company's share price finished the day yesterday up 18 per cent at USD 27.68.

"The historic slowdown in the economy and its effect on our business over the past 90 days have been the most challenging consumer environment our company has ever faced," said company CEO Brad Anderson. "We believe that there has been a dramatic and potentially long-lasting change in consumer behaviour as people adjust to the new realities of the marketplace.

"We also believe that customers will continue to reward those retailers who understand their needs and desires, and offer relevant solutions at fair prices. Yet we clearly recognise that these changes require us to make significant adjustments to our present cost structure."

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