Officials from North American retailer Best Buy have announced details of the company’s first quarter financial results, with a 13 percent increase in revenues but a 6.8 percent drop in profits. Revenues for the three months ended May 31st rose from $7.93 billion to $8.99 billion. Net profits dropped from $192 million to $179 million.
These results were better than expected, with the company gaining in market share in televisions, computing and video games. However, stronger than expected revenues from low margin items such as notebook computers and video games consoles were suggested as one of the main reasons for the fall in profits.
In the future the company intends to begin selling pre-used video games, starting with trials in six of the company’s Future Shop stores in Canada and eventually moving to other stores and online. According to a report by Canadian newspaper The Globe and Mail the scheme is expected to double Future Shop’s overall video games sales
and margins in the next three to five years.
The company is also attempting to expand in international markets, with a $2 billion deal to create a joint venture with the UK’s Carphone Warehouse Group – which should see the first Best Buy stores begin to open in Europe.