Analyst: Best Buy's December OK given challenges

Posted at 11:40 AM on January 6, 2012 by Paul Tosto
Filed under: Economy

Its December revenues were flat compared to last year and same store sales were slightly down, but analysts following Best Buy today say the company did well given the economic pressures its under.

Best Buy shares are up four percent today following this morning's December sales figures announcement.

MPR News reporter Martin Moylan writes:

Sales were down last month at Richfield-based. But the sales drop for the consumer electronics retailer was not as great as last year, despite stiff competition. Martin Moylan reports.

Last month, sales at Best Buy stores open at least 14 months fell about one percent. But a year ago, sales dropped four percent.

Some analysts see last month's sales results as a positive for Best Buy, which faces intensifying competition from rivals such as Target, Walmart and Amazon.com.

Steve Baker, vice president at The NPD Group, a consumer and retail market research firm, says the sales numbers weren't bad, given the economy and the intense competition between retailers.

"We saw some pretty aggressive pricing in categories like flat panel televisions, which always depresses revenue," he said. "So, overall, I think they performed pretty well in very challenging environment."

Best Buy reaffirmed its profit forecast for the year, despite the sales drop in the key holiday shopping month of December.