Tepid sales at Best Buy Canada Ltd. failed to elevate disappointing revenue at U.S. parent Best Buy Co. Inc. (NYSE:BBY).
The company’s shares fell 5.4% after its US$16.2 billion in revenue dropped slightly below the US$16.3 billion that analysts expected.
The company’s international operations fared better than in the U.S., but Canadian store sales saw a slight decline because of lower sales for TVs and other entertainment electronics.
“Sales in our international segment increased approximately 4% to $4.1 billion, driven primarily by new store growth and the impact of favorable foreign exchange rates,” Best Buy CFO James Muehlbauer said in a conference call.
“Canada saw many of the same consumer demand industry headwinds that were experienced in the domestic segment, which resulted in the similar low single-digit comparable store sales decline.”
Best Buy Canada is headquartered in Burnaby and operates 68 stores in Canada (see “Electronics outlook illustrates retail changes” – issue 1086; August 17-23, 2010).