Best Buy posts 24.5% profit rise

Electronic retailer Best Buy has announced a 24.5 per cent increase in gross profit of $12.2bn for its fiscal year ending February 27.

The retailer posted gross revenue for the year at $49.7bn – a ten per cent increase on last year’s figure. Online sales were also up 20 per cent at $2bn.

Net earnings were up 30 per cent year-on-year at $1.3bn, with almost 50 per cent of that coming from the last financial quarter.

Q4 store sales also rose seven per cent year-on-year, with annual sales rising one per cent overall.

Best Buy executive vice president of finance and CFO Brian Dunn said: The company delivered strong results in fiscal 2010 and we are very pleased with our performance given the environment of the past 12 months.

We delivered a comparable store sales gain for the year, capitalized on market share opportunities and managed expenses to deliver a financial outcome well above the expectations we had at the beginning of the year.”

Best Buy is planning to open a series of stores around the UK next month. Analyst Neil Saunders recently told MCV the retail giant shouldn’t pose a huge threat to gaming retailers such as GAME and Gamestation.