Global electricals retailer Best Buy saw revenues and stores sales fall during its fourth quarter, according to results published today.
Compared against the same period last year, store sales dropped 4.6 per cent and revenues decreased two per cent to $16.3 billion (£10.08 billion) in the three months to February 26th.
International trading performed better however with sales jumping four per cent year-on-year to $4.1 billion, and the company reported that Best Buy Europe, a partnership between the retailer and Carphone Warehouse, had low single-digit sales growth in the quarter.
Brian Dunn, CEO of Best Buy, admitted that “overall demand for key consumer electronics products was a challenge for the industry last year,” but said key initiatives were completed that will now allow the group to expand its multichannel offering.
Gross profit rate for Q4 was 24.3 per cent of revenue, an increase of 40 base points, thanks largely to the growth of Best Buy Mobile and the lower mix of mobile computing.
In the next year the company expects sales to remain flat or fall by as much as three per cent but revenues should grow from between one and four per cent with further re-organising of the company.
Jim Muehlbauer, Chief Financial Officer of Best Buy, said: “In fiscal 2011, we executed deliberate plans to drive growth in profitable areas of our business, focus and restructure our international portfolio to enhance returns and improve our capital allocation strategy.
“In fiscal 2012, we plan to continue these themes and expect challenges in the macro environment will continue to impact consumer spending within the retail and consumer electronics industries.
“Accordingly, our plans for the year include a range of potential outcomes to reflect this environment while also continuing prudent investments in profitable growth areas of our business and managing costs.”