Best Buy sales climb 10% in Q4 FY09
Recession? What recession? Best Buy posted its financial results for the fourth quarter of its fiscal year ending February 28th yesterday and all things considered, business looked pretty darn good. In the 12 months leading up to March 1st — the same period of time that saw Circuit City tank and wither away — Best Buy added 213 new locations (net). Crazy. Q4 revenue rang in at $14.7 billion, 10 percent above Q4 in the company’s prior fiscal year. The big sellers? Laptops and cellphones. Profits did decline 23 percent to $570 million however; partially a result of bad exchange rates and $144 million in restructuring and impairment charges. Perhaps the most interesting takeaway was Best Buy’s statement that while traffic in its stores dropped in Q4, customer spending increased. Less people are shopping but those who are spend more money — surprising considering the fact that consumer electronics costs are constantly being driven down.
[Via The New York Times]
That’s apretty bold prediction! Wonder how they did in Q4, FY08…
“Less people are shopping but those who are spend more money — surprising considering the fact that consumer electronics costs are constantly being driven down.”
That’s the typical result of price fixing and stealing from your customers
HAVENT YOU ALL NOTICED THAT THE SALES REPS IN THE STORES OR SO DAMN STUPID…THEY ARE DUMB SHITS
Um duh your sales are going to be higher. One of your biggest competitors went out of business. Its just sad its only 10%.
Right on azboricua. You beat me to it. That really says a lot about BB that they could only oick up 10%.
I think the worst part is how obvious it is why BB only picked up 10%. I mean, they don’t train their associates, prices are always through the roof compared to online, they don’t price match.
If my younger brother worked there I would at least make sure he’s online researching and reading reviews on the products he supports in the store.
Yes the employees there seem stupid, but is it really their fault? no, once they walk out the door they are just like all of us. Human beings. Now the training their Employer gives them determines how good they are at their job.
@ azboricua:
Actually some of the Best Buy sales associates are known cyborgs (cybernetic organisms) from the future. They were sent back by John Connor to ensure that people purchase copies of the Terminator movies.
So not all of them are llike us; human beings…
My last experience there was purchasing an LCD tv right before xmas. The store was not too busy but since the associates no longer work on commission they don’t appear to care about making a sale. After an hour after making my decision, the little smart ass told me there were four in the state, they were almost 200 miles away, they would not transfer one to that store, and would no longer be getting them in stock. The kid then told me the TV I was looking at was a different model and was $400 more. After challenging his answers with more detailed questions, pointing out the price ticket for the television that should have been in that ones place was printed two days prior, and the price of the one on the wall was no where to be found, the manager agreed to sell me the LN46A650 for the price of the LN46A630. Saved me $400 and didn’t care about the little punk giving me dirty looks the entire time.
@azboricua @Jon Circuit City shut its doors on March 8 (Best Buy’s FY09 ended Feb 28). Leading up to March 8th, CC locations were dumping inventory like crazy — plenty of locations closed with the walls picked clean. Had Circuit City stayed open and not drawn tons of attention with “going out of business” sales, Best Buy would have had an even better Q4.
Best Buy’s FY08 ended on Feb 28th. FY09 would end in 2010.
Excellent point tanders!
@tanders. Best Buy’s fy09 is for the fiscal yr in 2008. fy10 refers to fiscal yr 2009. So Best Buy increased sales by 10% in 2008. It is not a prediction, it’s fact.
@tanders – How very wrong. FY09 is over for BB. Currently in Q1 FY10.
well duh!
so ummm yeah, it would be awesome if companies ended their FY on Dec. 31st (calendar year) like the rest of the population. Until then im in IT for a payroll company and i see FY’s end …… basically whenever the hell a company wants. makes fiscal year reporting quite difficult.
Duh…Circuit City and comp USA are no longer…
this post does not specify whether the 10% sales increase was based on same store sales vs last year. Same store sales measures sales from stores open at least one year.
Best Buy had more stores this year than during that same period last year.
No investor or business would ever measure company growth by including sales from stores that were not open the year before.
This would explain why there sales were up 10% but profit was down 23%.
Its probably those expensive monster wires they trick people into buying.
Q4 2009 already !!??? Please don’t sell this to the American public – they’ve had enough already from the misuse of bailout funds … stop fudging and halucinating – we aren’t close to Q4 of 2009
. Should we say 2008 for now !?
Of course profits are up, considering their official policy and training to deny price matching.