RICHFIELD, Minn. ― Best Buy Co. Inc. backed its sales outlook for the year despite missing revenue expectations in the second quarter on weak demand for televisions, and its shares rose.
The world’s largest consumer electronics chain reassured investors that it was in a better position to compete with rivals in the upcoming holiday season.
In its second quarter ended Aug. 27, sales were essentially flat at $11.3 billion, while analysts expected about $11.5 billion.
Sales at stores open at least for 14 months fell 2.8 percent, making it the fifth straight quarter of same-store sales declines.
Still, the retailer, seen as a bellwether in consumer electronics, said it continued to expect annual revenue of $51.0 billion to $52.5 billion.
Second-quarter net profit fell to $177 million, or 47 cents a share, from $254 million, or 60 cents a share, a year earlier.
The results echoed those from smaller rival hhgregg Inc. as well as office supply chains Office Depot Inc. and OfficeMax Inc. that reported weak sales of technology products in the key back-to-school season.