Best Buy impresses with strong financials
US retailer posts a full year gross profit jump of 24.5%; share price jumps 3.6%
US electrical and videogames retail giant, Best Buy, has announced its financial results for the fiscal year ending February 27, 2010, revealing a headline gross profit growth of 24.5 per cent on revenue that was up around 10 per cent to $49.6 billion.
The company's basic and diluted EPS was $3.16 and $3.10 respectively while online revenues jumped by 20 per cent to around $2 billion.
"The company delivered strong results in fiscal 2010 and we are very pleased with our performance given the environment of the past 12 months," said Jim Muehlbauer, Best Buy's executive VP of finance and CFO. "We delivered a comparable store sales gain for the year, capitalised on market share opportunities and managed expenses to deliver a financial outcome well above the expectations we had at the beginning of the year."
Meanwhile the outlook for fiscal 2011 is also strong, with the company predicting an EPS of $3.45-3.60 and a revenue increase of 5-7 per cent to $52-53 billion.
The company is also set to open 10 megastores in the UK, following delays from the originally targeted launch date of 2009.
The Best Buy share price rose by 3.6 per cent throughout the day yesterday to sit at $42.66 - a market capitalisation of almost $18 billion.