posted a 27% decline in third-quarter earnings, in line with analysts' lowered expectations, citing slowing consumer spending and "a more promotional environment."
The electronics retailer said its fiscal 2001 third-quarter earnings were $57.3 million, or 27 cents a share, compared with $78.4 million, or 37 cents a share, in the third quarter last year. Sixteen analysts polled by
First Call/Thomson Financial
had produced the consensus estimate of 27 cents for the quarter.
Best Buy, based in Eden Prairie, Minn., said revenue for the quarter grew 20% to $3.7 billion from $3.1 billion a year ago. Same-store sales rose 5.9% compared with a 9.2% increase last year. The company also said it incurred "significant" start-up costs to open 40 new stores, including some in the New York market. It also cited costs associated with the marketing of BestBuy.com for the holiday season.
Shares of Best Buy were up $2.75, or 11%, to $27.38 recently in trading on the
New York Stock Exchange