Officials from U.S. based retailer Best Buy have announced details of the company’s third quarter financial results, with a 52 percent increase in profits that have lead to an increase in guidance for the full year – despite a slow start to the Christmas sales period.
Profits were up from $150 million the previous year to $228 million, while sales rose 17 percent to $9.93 billion. The company noted that same store sales rose 6.7 percent, attributing the rise primarily to increased sales of higher priced items such as video games consoles, notebook computers and GPS devices.
Sales increased by 32 percent in Best Buy’s operations in Canada and China, to a total of $1.72 billion. International operating profits also tripled to $22 million, in part due to the weak dollar. Overall company revenues for the full year are now expected to be $40 billion - higher than analyst expectations of $39.81 billion.
These third quarter results were above analyst expectations, although in part due simply to the reporting period, which included an extra week of Thanksgiving sales that will now not figure in fourth quarter results.
Commenting on the slow start to the Christmas gift buying season chief financial officer Jim Muehlbauer said, “Historically, we know that our customers are shopping later and later each year. Accordingly, we were planning and are prepared for a strong finish for the holiday season.”