Skip to main content

Best Buy beats Wall Street profit estimates heading into holidays

  • Author:
  • Updated:

Best Buy beat Wall Street profit estimates for the third quarter and the Business Journal reports that the Richfield retailer also turned in its first quarterly same-store sales growth of 2013. Despite that, the Associated Press says the company's prediction of a competitive environment during the crucial holiday season prompted a drop of 6 percent in premarket trading.

Best Buy's revenue was nearly flat at $9.36 billion. Analysts expected revenue of $9.37 billion. Revenue in stores open at least one year, a key retail metric, rose 0.3 percent. That includes a sales increase of 1.7 percent in the U.S. and a 15.1 percent increase in online sales.

The Star Tribune reported that Best Buy’s performance was also shaped by timely releases of popular electronics items including new smartphones as well as the seasonal jump in TV sales.

An MPR analysis looked at the stock's historic turnaround. Sixteen analysts following Best Buy have rated the stock a buy. The stock has more than tripled since the beginning of the year and hit a two-year high last week. A year ago, just two analysts recommended the stock. Analysts credit the turnaround on smart moves by new leadership, including CEO Hubert Joly.

"A lot of credit goes to management for executing on really what was the only viable turn-around plan — to partner with other vendors, to build out stores within stores, to really go after this price-matching concept." Morningstar retail analyst R.J. Hottovy said.

Best Buy has cut costs, added employee training and matched online prices to get customers into stores as it faces competition from discounters and online retailers. But an analyst at Edward Jones said the company is still losing sales to competitors, which raises doubts about how well it can perform long term.

Next Up


Minneapolis will waive pet adoption fees on Friday

Pet licensing fees still apply to adoptions at the event.


Family who endured car theft ordeal surprised with trip to Universal Orlando

A father rescued his four children after a thief jumped in his car while he was getting something from his trunk.


Charges: Teen speeding before crash that killed mother, injured her son

The teenager was driving at speeds between 72-89 mph at the time of the crash.

Northland Vapor in Moorhead, Minn.

Northland Vapor calls St. Paul regulators 'overzealous' in lawsuit over THC sales

The small Minnesota business said the lawsuit was "misleading" and "shameful."


Excelsior chocolate shop ransacked by thieves to reopen

Truffle Hill will reopen to the public on Friday.

Company agrees to changes after child workers found in MN meat plants

An investigation found children ages 13-17 working hazardous jobs at the plants.


Drinks can company to lay off almost 100 workers, close St. Paul plant

State authorities were informed of the impending closure.


Suspect in Minneapolis bar killing charged with weapons crime

The suspect has not been charged with murder in the case as of Wednesday.

snow, blowing snow

A monster storm is coming next week: What will happen?

What we know with high confidence at this point is that there will be a monster storm in the central U.S. by the early and middle part of next week.

police lights

Boy safe after kidnapping by non-custodial parent in Mankato

The search prompted the temporary shutdown of I-35 Tuesday night.