MINNEAPOLIS–Best Buy reported a net income decline on a sales gain for the third quarter ended Nov. 29.
The retailer posted net earnings of $52 million, a drop from earnings of $228 million in the year-ago quarter.
The reduction in third-quarter earnings was due in large part to a non-operating impairment charge of $111 million related to a sustained decline in the market price of the retailer’s nearly 3 percent stake in the common shares outstanding of The Carphone Warehouse Group PLC.
Revenues were 11.5 billion, compared with $9.9 billion in the year-ago quarter.
Comparable-store sales fell 5.3 percent.
“Certainly this report is better than feared from a comp and gross margin perspective,” said Chris Horvers, a J.P. Morgan analyst, in a research note. “We also applaud the cutback in store growth.”
The company added that it is offering buyout packages to most of its 4,000 corporate employees to cut costs during the difficult economic environment.