Best Buy profits plummet

US electronics chain Best Buy has reported its 2009 Q3 fiscal results, with revenues jumping 16 per cent to $11.5 billion for the week ending November 29th 2008.

The revenues jump follows the opening of 181 new European stores over the past 12 months, however, earnings have plummeted year-on-year from $228 million to $52 million. The firm blames the fall in profit on a ‘non-operating impairment charge’ of $111 million, which was due to a significant decline in the price of the company’s stake in The Carphone Warehouse Group.

The company has also announced that due to the economic climate it will be ‘significantly’ reducing its spending for the 2010 fiscal year.

I am proud of the performance of our people in an environment marked by unprecedented economic turmoil,” said president and chief operating officer of Best Buy Brian Dunn.

We continued to gain market share, improve gross profits, manage our costs and bring down our domestic inventory levels despite volatile consumer demand. We have some tough choices to make in response to the turbulent conditions our customers are facing, but our recent revenue performance versus the industry reinforces our commitment to our long-term strategy of helping people unlock the promises of technology.”