Best Buy reports results for the first quarter on Tuesday. The following is a summary of key developments and analyst opinion related to the period.
Consumer electronics retailer Best Buy remained the last man standing for most of its first fiscal quarter, after its now-defunct competitor shut the last of its remaining stores in March 8.
Now, the nation's largest electronics store—which will welcome its new CEO this month—has its sights set on capturing customers who once shopped at Circuit City, just as heavyweights like Wal-Mart and Target try to do the same.
During the first quarter, which began March 1 and ended May 30, the Richfield, Minn.-based company opened eight stores, including a massive store in Chicago's famous Magnificent Mile shopping district. It expects to open about 65 stores during the fiscal year.
Best Buy is also among the retailers selling the much-anticipated Pre smart phone made by Palm.
By the Numbers
Analysts polled by Thomson Reuters predict a profit of 34 cents per share on revenue of $10.12 billion for the quarter.
Stifel Nicolaus & Co. David Schick told investors he believes Best Buy's same-store sales—an important retail industry metric—will fall from the same period last year. That's because the retailer benefited last year from the federal government's economic stimulus package, that put extra cash in the hands of most Americans.
"Generally we expect stronger gross margin and reduced spending will offset slower topline as (Best Buy) faces difficult comparisons," Schick wrote in a recent research note.
Best Buy will hold its annual shareholders meeting on June 24, when its president and chief operating officer Brian J. Dunn takes over as CEO. Dunn will replace retiring CEO Brad Anderson.
During the quarter, which began March 1, shares rose nearly 22 percent to end the period at $35.10.