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Best Buy Earnings Plummet, Execs Remain Optimistic
Best Buy earnings plummeted 18 percent to $234 million in the first quarter, falling short of expectations, but executives are confident that the company’s core marketing and merchandising strategies are working.
First quarter revenues for the retailer increased 14 percent and same store results rose 3 percent, while online revenue grew nearly 25 percent, writes MediaPost.
The company is particularly optimistic about growth potential in its Magnolia Home Theater unit and the Geek Squad, both of which have shown tremendous growth (in triple and double digits, respectively).
Brian Dunn, Best Buy’s president and COO, says that the company’s investment in helping consumers solve technology problems is what is extending its lead over the competition.