MINNEAPOLIS–Net income for Best Buy totaled $779 million in the fourth quarter, a whopping 37 percent ahead of the fourth quarter in its last fiscal year.
According to a company statement, the consumer-electronics chain accomplished this partly on a net sales increase of 12.4 percent, to $16.6 billion—a pickup that included a 7 percent rise in Best Buy’s same-store sales in the quarter. This helped offset a 7.8 percent increase in selling, general and administrative expenses, along with a 60 basis-point reduction in gross margin.
For the fiscal year as a whole, Best Buy posted a net profit of $1.3 billion, 31 percent up over its last fiscal year. Net sales for the year finished at $49.7 billion, 10.4 percent greater than last year. The company statement said Best Buy was able to increase its market share in the United States by 240 basis points during the fiscal year.
For fiscal 2011, Best Buy said it expects revenue of from $52 billion to $53 billion, which would be an increase of from 5 to 7 percent. Same-store sales are expected to increase by from 1 to 3 percent, the company said.