Best Buy, Circuit City Announce Earnings
Two CE giants announced their quarterly earnings on Wednesday, with Best Buy reporting an especially profitable start to the year.
Best Buy announced its profit had risen more than 18 percent for the first quarter of the year over the same period in 2006, on net earnings of $763 million, compared with $644 million previously. The company attributed the gain to the addition of new stores, a stronger “average ticket,” and the inclusion of an additional week of business from the previous year. Unredeemed gift cards were also a factor, according to the company.
While Best Buy had been adding stores and employees, Circuit City has been subtracting both, and its profits reflected that. The company lost more than $12 million in the fourth quarter, compared with a profit of over $141 million the same period the year before.