Best Buy results top estimates; outlook maintained

NEW YORK, Tue May 22, 2012 – Best Buy Co. Inc. reported better-than-expected quarterly results and maintained its outlook for the year as a turnaround plan started to take hold, sending shares in the world’s largest consumer electronics chain up more nearly 4 percent.

The stronger results eased concerns about the future of the retailer after Chief Executive Brian Dunn resigned abruptly last month amid a probe into allegations of personal misconduct.

Critics are also worried that Best Buy is serving as a showroom for Amazon.com Inc. and other online retailers.

“Best Buy is in a turnaround, and the strategic priorities we laid out at the beginning of the year are just the first phase of the changes to come,” Interim CEO Mike Mikan said. “We know we have to better adapt to the new realities of the marketplace.”

Sales rose 2.1 percent to $11.61 billion, beating the analysts’ average estimate of $11.52 billion.

Net earnings fell to $161 million, or 47 cents a share, for the quarter ended May 5, from $255 million, or 64 cents a share, a year earlier. Excluding items, it earned 72 cents a share, beating the average estimate of 59 cents.